Issue - meetings

That the budget monitoring position for the financial year up to 30 June 2020 (Quarter 1) be noted.

(Councillors UllaKarin Clark, John Halsall, John Kaiser, Stuart Munro and Wayne Smith declared personal interests in this item)

The Executive considered a report setting out the budget monitoring position of the Council owned companies up to 30 June 2020.

Whilst introducing the report the Executive Member for Finance and Housing highlighted the facts relating to the national effects of Covid 19 and the costs of coping with the crisis. 

Councillor Kaiser advised that with regard to Wokingham the number of residents supported had risen from 1,800 to nearly 5,000 people at its peak.  In addition £39.4m had been paid out in Government grants and rate relief to businesses large and small and the Council was now faced with an expected overspend of £19m; which would be supported by around £15m worth of grants received from the Government, NHS and other income.

Councillor Kaiser reiterated that although the Council was currently planning for recovery nobody had any idea what normal would look like or cost.  With spikes turning up around the UK and Europe and the third world just beginning to count the cost in lives and resources he believed that the Country was still in the early stages of this world wide pandemic. 

With regard to the Shareholders’ Report Councillor Kaiser confirmed that the companies were on target for the current financial year. 

With regard to WHL there were currently 57 houses under construction.  Councillor Kaiser reminded Members that the Council had an ambitious target to build 1,000 houses over four years; a mixture of homes which would produce an overall return of 5%.  To achieve this it had been agreed to move to a more efficient one team approach between the Council and the housing companies.  This was being achieved by the development function of the housing companies being brought back in-house and this was proving to be successful.

Councillor Kaiser highlighted the anticipated budget shortfall for WHL but confirmed that even taking this shortfall into account it was expected that a full year profit of about £400,000 would be achieved from the housing companies overall.  This profit would be included in the General Fund Account.

RESOLVED:  That the budget monitoring position for the financial year up to 30 June 2020 (Quarter 1) be noted.