Agenda item

Revenue Budget Draft Outturn Forecast 2021/22

Decision:

RESOLVED:

That the Executive:

a) Noted the Council’s draft outturn position for the General Fund 2021/22 which is an underspend of £1.771m and the Housing Revenue Account 2021/22 which is an underspend of £0.538m as summarised in section 4, alongside the further analysis which is set out in Section 5 and Section 6 of this report.

b) Approved the following transfers to reserves which are reflected in the draft outturn position.

Transfer to reserves included within individual Directorates:

· Homelessness (Section 5.30) - £228k

· General Risk Reserve (Leisure – Section 5.36) - £0.556m

· Planning Reserve (JPU – Section 5.47) - £224k

· Capital General Fund (MRP – Section 5.98) - £1.494m

Transfer to Earmarked Reserves from Available Resources:

· Smoothing Reserve – Home to School Transport £2.500m

· Smoothing Reserve – Knuston Hall - £0.600m

· Smoothing Reserve – NORSE - £1.100m

· Budget Delivery Reserve - £0.750m

· Members Empowerment Fund - £78k

In addition, a further £1.5m is to be transferred to the Transformation Reserve to enable investment into the Council’s Highway’s function to improve important elements of the Highways across North Northamptonshire

c) Noted the assessment of the 2021/22 savings as shown in Appendix A.

Reason for Recommendations – to note the draft outturn position for 2021/22, approve the transfer to reserves and consider the impact on this year and future years budgets.

Minutes:

Councillor Lloyd Bunday, Executive Member for Finance and Transformation introduced a report that set out the draft outturn position for 2021/22 for the General Fund and the Housing Revenue Account.

It was noted that the monitoring report set out the material financial issues identified since the 2021/22 budget was set in February 2021 and was based on the draft outturn for 2021/22 which indicated a forecast underspend for the General Fund of £1.77m against the approved budget. The Housing Revenue Account had a forecast underspend of £538,000 against budget

The Chair thanked Cllr Bunday for his report, stating that although the Council had faced challenges in its first year of existence, it had demonstrated good financial management enabling it to manage emerging pressures in 2022/23. Cllr Smithers further stated that he was conscious of the fact that the Council’s finances were taxpayer’s money, and it was important that investments were made in important areas for residents and communities.

The Chair noted that, for residents, improvements to highways was an important element of the Council’s work and therefore proposed that £1.5m of the identified underspend be set aside in reserve to enable repairs to pot-holes, white line painting and road sign cleaning, in addition to the Council’s existing commitments. An addition to recommendation b) was provided as follows:

“In addition, a further £1.5m is to be transferred to the Transformation Reserve to enable investment into the Council’s Highway’s function to improve important elements of the Highways across North Northamptonshire”

Cllrs Lawman, Harrison and Howell welcomed the extra investment in an area that would impact every resident in North Northamptonshire. Cllr David Howes noted that it was extremely positive news that an authority in its first year of existence could be so well-run financially that it was in a position to make such an investment in an area that was of great importance to residents.