Issue - meetings

Report of Chief Finance Officer

Lead Cabinet member: Councillor Zoe Nicholson

(Non-key decision):

(1) To note the General Fund, HRA and Collection Fund financial performance for the quarter ended September 2020.

(2) To agree the amended capital programme as set out at appendix 2 to the report.

The Cabinet considered the report of the Chief Finance Officer, updating members on the Council’s financial performance for quarter 2 of 2020/21.

The position at the end of September showed a negative variance of £1.126m on net expenditure, which is an increase of £429k on the previous quarter. The impact of the pandemic and associated lockdown continued to have a significant impact on the Council’s financial position, in particular on income which was down some £646k at the end of September.

The £1.126m current shortfall was expected to increase as the impact of the second lockdown took effect with further reductions in income and continued increased cost pressures, in particular relating to homelessness and temporary accommodation.

In response to a question from Councillor Collier, Councillor Nicholson commented that the impact of the government’s Income Compensation Scheme in this financial year would likely be half of what the overall loss would be.

Visiting member and Vice-Chair of PPAC, Councillor Liz Boorman, addressed the Cabinet and commented that whilst the current financial situation wasn’t positive, the deficit (over 6 months) was an improvement over the £10 million previously forecast for the whole year.

Resolved (Non-key decision):

(1) To note the General Fund, HRA and Collection Fund financial performance for the quarter ended September 2020.

(2) To agree the amended capital programme as set out at appendix 2 to the report.

Reason for decisions:

To enable Cabinet members to consider specific aspects of the Council’s financial performance.