Agenda item

The Scrutiny Committee is asked to consider the report of the Chief Finance Officer which sets out Financial Results and Budget Exceptions Reports for Quarter 2 to 30 September 2020.

The Committee received the report of the Chief Finance Officer which asked Members to consider the content of the report and make any comments on the Council’s financial results and budget exceptions.

Members noted that the as a consequence of Covid-19, a revised budget was approved at Full Council on 22 September 2020 and accordingly, Quarter 2 outturn forecasts were largely in line with the revised budget, with a few exceptions which were detailed in the report and appendices.

Officers explained that the estimated financial impacts for the year as a result of Covid-19 were additional costs, delayed savings and income losses of £3,624k across both the General Fund and HRA. To date the Council had received £1,068k emergency Covid funding from the Government with further compensation for losses in sales, fees and charges income expected. The revised estimate drew down £1,440k New Homes Bonus from reserves, and reduced the planned transfer to the HRA Major Repairs Reserve by £374k, to help offset these costs and losses pending further potential funding from the Government.

The Committee were informed that at the end of Q2, the forecast full year revenue outturn showed a (£81k) surplus in the General Fund, and a HRA surplus of (£3,380k) for transfer to the Major repairs Reserve. General Fund and HRA planned savings were on target to be achieved against the revised budget targets of (£156k) and (£23k) respectively.

Members noted that on the General Fund capital programme, the spend for new build projects and disabled facilities grants had been revisited and a further (£815k) had been forecast to now spend in 21/22. In the HRA, slippage in the empty homes programme was more than offset by an increase in the capacity to deliver additional carry out works on the housing stock.

Members acknowledged that Programme for Growth projects continued, and additional projects approved by Full Council on 22September 2020 were now included in a project-by-project analysis shown in Appendix D.

The Committee asked for further information around the contributions to the Bawtry Road roundabout and when this had been agreed; Officers confirmed that they would look into this and send a response after the meeting.

Some Members were concerned that savings targets had been missed and queried whether they were ambitious enough. Officers explained that as part of the revised budget, savings targets were also reviewed, but that some of the targets had not been achieved due to the resource requirements of the Covid-19 pandemic. Savings targets often meant additional work for Officers, which during the pandemic had proved to be difficult.

Members suggested that some of the text in the report appendices should be made bigger so that figures were easier to read; Officers confirmed that they would look into improving this for future reports.

RESOLVED:

i)             To note the Council’s financial results and budget exceptions in Quarter 2 in 2020-21.

ii)            To ask Officers to provide a response to the Committee’s query relating to the Council’s financial contributions to the Bawtry Road roundabout.

iii)          To ask Officers to enlarge some of the figures in the report appendices to make them easier to read.