Issue - meetings

That:

1)               the financial impact of the COVID-19 crisis, as illustrated in the Executive Summary, be noted;

2)               the overall forecast of the current position of the General Fund revenue budget, Housing Revenue Account (HRA) and Dedicated Schools Grant (DSG), as illustrated in the Executive Summary and appendices attached to the report, be noted;

3)               a supplementary estimate of £151,270 for the Equalities and Diversity programme be approved;

4)               a supplementary estimate of £250,000 for the re-integration of Trading Standards and Environmental Health to WBC be approved. This money was identified in last year’s Medium Term Financial Plan to be spent in 2022/23 however the project costs are forecast to now be spent in 2021/22 rather than 2022/23.

The Executive considered a report setting out the expenditure for the second quarter of the current financial year and the forecast outturn positions for the Council’s net revenue expenditure, its General Fund Balance, the Housing Revenue Account and the School’s Block funding.

The Executive Member for Finance and Housing advised that in addition to the financial challenges mentioned in the Leader of Council’s earlier statement there were also pressure on the schools’ budgets and the areas covered by the Dedicated Schools Grant (DSG), which had a forecast overspend of £9.6m.  This figure was likely to rise because of the increase in pension contributions for school staff and the much-deserved salary increase for teachers.  The Council would also have to bear the increase in gas and electricity costs, which was estimated to be in the region of £500k.   Councillor Kaiser advised that efforts were being made to reduce the deficit in the Dedicated Schools Grant through the provision of a SEND school, Oaktree.   Unfortunately, the DfE had advised that they would be postponing this provision which had the effect of costing the Council £1m pa until the provision was available. 

Councillor Kaiser also highlighted the end of September position and the forecast overspend of the revenue budget, as set out in the report, and pointed out that the overspend was only 0.3% of the initial budget, and half of that was due to Covid.  In addition, Councillor Kaiser drew attention to the two supplementary estimate requests and the reasons for them.

In relation to the deficit in the DSG Councillor Munro queried whether the deficit would increase year on year, particularly as the Council was responsible for the provision of services but did not have any authority over academies etc?  Councillor Kaiser explained that because the DSG was outside the Council’s revenue account the deficit could increase year on year but at some point, accountability for it would be required.  The Government had stated that more money would be available for schools however it was unknown whether this would assist in reducing this deficit.

Given the importance of the new homes bonus to the Council Councillor Smith queried whether the Council should be taking the matter up with the relevant Government department?   Councillor Halsall confirmed that he had alerted the four local MPs to the Council’s financial situation including the impact of increased gas and electricity costs, the DSG, the new homes bonus and also the Health and Social Care Bill. 

Councillor Kaiser commented that although there were a number of pressures the Council was still in a strong financial position, including having a high level of non-specific usable revenue reserves.

RESOLVED that:

1)               the financial impact of the Covid-19 crisis, as illustrated in the Executive Summary, be noted;

2)               the overall forecast of the current position of the General Fund revenue budget, Housing Revenue Account (HRA) and Dedicated Schools Grant (DSG), as illustrated in the Executive Summary and appendices attached to the report, be noted;

3)               a supplementary estimate of  ...  view the full minutes text for item 55