Issue - meetings

To receive the financial performance report 2020/21 for Quarter 2.

Executive Councillor: J Gray.

The Cabinet has considered and commented upon the financial performance at the end of September 2020 and the register of reviews of Commercial Investment Strategy propositions.

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 financial performance, to the end of September 2020.

In introducing the report, the Executive Councillor for Finance and Resources reminded the Cabinet that the Council’s financial performance was a dynamic and evolving situation, which would continue to change as Quarter 3 progressed. The Executive Councillor drew Cabinet’s attention to the highlights within the report, specifically the forecast overspend of £2.403m in the Revenue outturn and a forecast underspend of £10.802m in the Capital Programme at the end of 2020/21. A brief update on collection rates for Council Tax and Non Domestic Rates and the projected outturn from the Commercial Investment Strategy was also provided, the latter of which was expected to demonstrate a variance in the region of £1m from the Budget position.

The Chief Finance Officer explained that the report included the first claim from the Government’s Income Compensation of £1.568m and that the Council would be seeking to continue to claim against this scheme throughout the financial year, alongside other mechanisms which were available to the Council. Cabinet’s attention was drawn to the specific budgetary pressures continuing to have an impact upon the Council’s revenue budget as outlined in Section 3.2 of the report and were reminded that the outstanding projects within the Capital Programme would be reviewed as part of the 2021/22 Budget setting process which was now underway.

Having reviewed the comments of the Overview and Scrutiny Panel (Performance and Growth) who had been pleased to note that the Council’s finances appeared to be performing better than originally expected, the Cabinet received an update on the Government consultation the use of funds from the Public Works Loan Board, together with the implications should this source of funding no longer be available to local authorities.

In concluding the discussion on this item, the Executive Leader reminded the Cabinet that despite the revenue deficit, overall the District Council continued to maintain a strong budgetary position and would not find itself in the perilous situation being faced by other authorities within the Country. A message which should continue to be conveyed to local communities within Huntingdonshire.

Whereupon it was

RESOLVED

that the Cabinet note the Council’s financial performance at the end of September and the register of reviews of Commercial Investment Strategy propositions.

The Panel are to receive the Financial Performance Report 2020/21, Quarter 2.

By means 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 2 of 2020/21 was presented to the Panel.

In introducing the report, the Executive Councillor for Finance and Resources explained that the Council had exceeded the budget by £2.4m and this represented an overspend of 13.6%. It was explained that this was as a result of the Covid-19 pandemic response and the nationwide lockdown. The Chief Finance Officer stated that there was likely to be an additional £634k overspend because of the second nationwide lockdown. This would be as a result of closing One Leisure as well as a loss of rental income. It was noted that whilst the Council were hopeful that compensation from Government would cover the loss in One Leisure income, there would be no compensation in respect of the loss in rental income. The Panel was also informed that there was an underspend on Capital projects and that a review of the Capital Programme was being undertaken.

Following the introduction, the Chairman commented that the Council’s finances appeared to be performing better than expected.

Councillor Wakeford then raised the prospect of the Council being unable to use Public Works Loan Board (PWLB) loans to purchase property under the Commercial Investment Strategy (CIS). It was confirmed that the Government had conducted a consultation on the PWLB and that the Council may have to assess other funding options if it was to achieve the objectives of the CIS. The Panel,

RESOLVED

that the Cabinet be recommended to consider the comments raised by the Overview and Scrutiny Panel when considering the report at their meeting.