Agenda item

To receive and consider the report of the Chief Finance Officer.

1.         Note the full year forecast position for the 2019/20 revenue budget and capital investment programme.

2.         Note the slippage requests outlined in Appendix 2 of the report to finance expenditure on specific items or projects in 2020/21.

3.         Approval for the contribution of £63k from in-year revenue underspends to the Change Management Reserve to finance one-off redundancy and pension strain costs arising from transformation and shared service strategies.  This will bring the reserve to £250k.

4.         Approval for the contribution of £100k from in-year revenue underspends to fund the revenue implications of future planning appeals. This will bring the reserve to £100k.

5.         Approval for the contribution of £100k from in-year revenue underspends to fund crucial works to the council’s CCTV operations centre.

6.         Approval for the contribution of £203k from in-year revenue underspends to increase the business rates retention reserve.

7.         Note the 2019/20 outturn position on the Council's reserves outlined in Appendix 4.

8.         Note the impact of the final capital expenditure outturn and the re-phasing of capital budgets to 2020/21 and approve the adjustments to the capital programme outlined in paragraph 61.

9.         Request Council approval of the financing of the 2019/20 capital programme to maximise the use of funding resources available to the Council.

Councillor Peter Wilson, Executive Member (Resources), presented the report of the Chief Finance Officer which presents the provisional revenue outturn figures for the Council as compared against the budgets and efficiency savings targets set for the financial year 2019/20 and the provisional outturn figures for the 2019/20 capital programme.  The report also updates the capital programme for financial years 2020/21 to 2022/23 to take account of the re-phasing of expenditure from 2019/20 and other proposed budget changes.

The accounts are provisional at this stage and are also subject to final checking and scrutiny by the Council’s external auditor. Should there be any significant changes to the outturn as a result of this process a further report will be submitted to Executive Cabinet.

In the 2019/20 budget the expected net income from Market Walk after deducting financing costs is £1.004m. The final outturn position shows an underspend of £29k that will be used to increase the Market Walk income equalisation reserve.

The potential medium-term impact of Covid-19 on the council’s budget is a reduction in the retained business rates. Current estimates have the collection of business rates in 2020/21 6% lower than in 2019/20 even after accounting for the Government announcements regarding additional retail, hospitality and leisure reliefs. The council’s share of such a reduction is approximately £400k per annum. The Government has provisionally announced support by allowing councils to spread these losses over three years rather than one.

The Leader of the Opposition, Councillor John Walker, queried the impact of Covid-19 on the council’s financial position going forwards.  The grants given to businesses will be refunded back from the government, but there may be an impact in the future from a reduction in council tax and business rate retention.    In light of this the council is proposing to set aside the remaining underspends in 2019/20 of £203k to increase the business rates retention reserve and help the council manage future uncertainty in this key funding stream.

Decision:

1.         Note the full year forecast position for the 2019/20 revenue budget and capital investment programme.

2.         Note the slippage requests outlined in Appendix 2 of the report to finance expenditure on specific items or projects in 2020/21.

3.         Approval for the contribution of £63k from in-year revenue underspends to the Change Management Reserve to finance one-off redundancy and pension strain costs arising from transformation and shared service strategies.  This will bring the reserve to £250k.

4.         Approval for the contribution of £100k from in-year revenue underspends to fund the revenue implications of future planning appeals. This will bring the reserve to £100k.

5.         Approval for the contribution of £100k from in-year revenue underspends to fund crucial works to the council’s CCTV operations centre.

6.         Approval for the contribution of £203k from in-year revenue underspends to increase the business rates retention reserve.

7.         Note the 2019/20 outturn position on the Council's reserves outlined in Appendix 4.

8.         Note the impact of the final capital expenditure outturn and the re-phasing of capital budgets to 2020/21 and approve the adjustments to the capital programme outlined in paragraph 61.

9.         Request Council approval of the financing of the 2019/20 capital programme to maximise the use of funding resources available to the Council.

Reasons for Recommendation(s):

To ensure the Council’s budgetary targets are achieved.

Alternative Options Considered and Rejected:

None.