Issue - meetings

To receive a report from the Chief Financial Officer on the Financial Performance Report 2020/21, Quarter 1.

Executive Councillor: J Gray.

The Cabinet has considered and commented upon the financial performance at the end of June 2020, as detailed in Appendices 1 and the register of reviews of Commercial Investment Strategy propositions at Appendix 2 of the report submitted.

A report by the Chief Finance Officer was submitted (a copy of which is appended in the Minute Book) presenting details of the Council’s projected financial performance for 2020/21.

In introducing the report, the Executive Councillor for Finance and Resources paid tribute to all Officers who had assisted with the Council’s response to the COVID-19 pandemic. Having thanked the Chief Finance Officer and her team for the production of a comprehensive financial report, it was reported that there had been an estimated revenue outturn overspend of £2.996m and an estimated capital outturn underspend of £11.757m at the end of 2020/21.

The Chief Finance Officer drew the Cabinet’s attention to the revenue forecast variances by service, capital programme expenditure and the Commercial Investment Strategy. In terms of the latter, comment was made that opportunities would continue to present themselves despite the current climate but that the Council should proceed with caution in this area.

Having regard to the Capital Programme, the Executive Councillor for Community Resilience and Wellbeing acknowledged the challenges currently faced and encouraged the completion of the 3G pitch at Ramsey project.

In noting the views of the Overview and Scrutiny Panel (Performance and Growth), it was

RESOLVED

that the Cabinet note the Council’s financial performance at the end of June 2020, as outlined in Appendix 1 and the register of reviews of Commercial Investment Strategy propositions as outlined in Appendix 2 of the report now submitted.

The Panel are to receive the Financial Performance Report 2020/21, Quarter 1.

With the aid of a report by the Chief Finance Officer (a copy of which is appended in the Minute Book) the Council’s financial performance for quarter 1 of 2020/21 was presented to the Panel.

In summarising the report, the Chief Finance Officer informed the Panel that the Council had experienced a loss of revenue as well as extra expenditure as a result of the pandemic and subsequent lockdown. There would be compensation from the Government but the details were yet to be finalised. The accuracy of the budget estimates were dependent on whether there would be a second wave of Covid-19 and reintroduction of restrictions.

Members were informed that the estimated £2.9m deficit was not a bad as originally feared. The Council had been able to assist many residents and had provided support packages for businesses. The Council had also received emergency funding to cover unexpected expenditure.

Councillor Cooper-Marsh asked what the impact of a second lockdown or local lockdown would be upon the finances of the Council. The Panel was informed that the impact would be dependent on the support the Council would offer to vulnerable residents and whether there were any further restrictions on leisure services, which would impact on One Leisure.

A concern was raised by Councillor Cooper-Marsh regarding the impact of the Covid-19 pandemic on next year’s Council Tax and particularly whether it would be likely to rise to cover lost income. In response, the Panel was reassured that Council Tax could not rise any further than the statutory maximum.

In following on, Councillor Wells asked whether the budget forecast included any predicted future losses in relation to One Leisure income particularly as a result of any capacity limits that might have to be implemented. In response, Members were informed that the forecast included future losses and that estimates were made based on a slow recovery. However, there was a compensation scheme under which leisure facilities could claim 75p for every £1 of income lost.

Councillor Dew questioned whether the perceived lack of daytime bookings was accounted for in budget estimates. The Chief Finance Officer stated that estimates were as accurate as they could be and would therefore account for variances in attendance.

The discussion moved onto the Commercial Investment Strategy (CIS). Councillor Roberts asked what impact the pandemic would have on it and any future investments. The Panel was reassured that rental income was higher than the same period the previous year despite the fact that the council had not added to its acquisitions. In addition, the Executive Councillor confirmed that it was unlikely that there would be any CIS purchases in the current economic climate.

The Council’s social obligations in its role as a landlord of CIS properties was raised by Councillor Wakeford. The Panel was informed that under the ICS the Council operated on a commercial basis but that it was aware of its social obligations. These were met through engagement with tenants and the Commercial Estates Team worked hard in establishing  ...  view the full minutes text for item 22