Agenda item

RESOLVED:

(KEY DECISION)

That the Executive:

a)    Noted the Council’s forecast outturn position for 2021/22 as summarised in section 4, alongside the further analysis, risks and other considerations as set out from section 5 of the report onwards.

b)    Noted the assessment of the current deliverability of the 2021/22 saving proposals in Appendix A of the report.

c)    Noted the latest position on the contingency budget as referenced in paragraph 5.5 of the report

Reason for Decisions:– to note the forecast financial position for 2021/22 as at Period 9 and consider the impact on this year and future years budgets.

Councillor Lloyd Bunday,Executive Member for Finance and Transformation introduced a report that set out the forecast outturn position for the Council based on the Period 9 monitoring forecasts for the General Fund and the Housing Revenue Account.

It was noted that there was current a forecast underspend against the General Fund budget of £888,000, a positive movement of £892,000 and budget variances for directorates were outlined to the meeting. Cllr Bunday noted that while this was quite a stable position for a new authority, the size of budget variances should be less pronounced moving forward.

Cllr Bunday stated that the forecast outturn for Children’s and Education Service was balanced, although this position would be kept under review with the Finance Director for the Children’s Trust regularly meeting with finance officers from the Council to provide detailed updates on the budget position.  It was noted that, at the end of Period 9, the Children’s Trust was showing a pressure of £3.287m, this could in part be mitigated by bids to both North and West Northamptonshire Councils for Covid-19 related funding totalling £2.601m relating to pressures arising from the pandemic. Should these bids be successful, the remaining overspend of £686k would be met through the use of the carry forward reserve for the Trust.

Cllr Bunday stated that areas of risk and uncertainty going forward included Adult Social Care as a demand led service, with a need to ensure disaggregation care packages were up to date and correctly aligned. The Children’s Trust was another demand led service that was subject to volatility. Cllr Bunday also noted the level of work that had been undertaken to address staffing structures as a new authority, with this significant piece of work ongoing.

Cllr Bunday concluded by referencing the Council’s contingency budget designed to meet unforeseen or unplanned/unbudgeted costs. The balance on contingency budget for Period 9 was £3.619m, an increase of £74k from Period 7 to reflect the movement on the Chester House forecast. Any unspent contingency at the end of the financial year would be moved to the Council’s reserves.

Cllrs Brackenbury and Harrison welcomed the report, noting the importance of being able to analyse pressures relating to specific directorates.

The Chair thanked the Finance Team for having a tight grip on the Council’s finances and encouraged open dialogue with The Children’s Trust regarding its financial requirements, so as to avoid any unwanted surprises in relation to the budgetary position.

RESOLVED:

(KEY DECISION)

That the Executive:

a)    Noted the Council’s forecast outturn position for 2021/22 as summarised in section 4, alongside the further analysis, risks and other considerations as set out from section 5 of the report onwards.

b)    Noted the assessment of the current deliverability of the 2021/22 saving proposals in Appendix A of the report.

c)    Noted the latest position on the contingency budget as referenced in paragraph 5.5 of the report

Reason for Decisions:– to note the forecast financial position for 2021/22 as at Period 9 and consider the impact on this year and future years budgets.