Issue - meetings

To consider and decide on the recommendations as set out in the associated report. 

RESOLVED:

1.    That the actual revenue expenditure outturn and impact on reserves for the year ended 31 March 2022 be noted.

2.    That the expected withdrawal from reserves of £963,000 to meet the forecast deficit at Quarter 3 would not be needed and a sum of £35,000 would be transferred into the General Fund be noted. 

REASON FOR DECISION: To show the actual expenditure on services compared to the revised budget for the period ending 31 March 2022, and the forecast outturn position, highlighting significant variances from the revised annual budget.

Councillor Andrew Hickey, Cabinet Member for Finance and Performance introduced Jane Fineman, Head of Finance and Procurement who presented the report as set out in the agenda.

RESOLVED:

1.    That the actual revenue expenditure outturn and impact on reserves for the year ended 31 March 2022 be noted.

2.    That the expected withdrawal from reserves of £963,000 to meet the forecast deficit at Quarter 3 would not be needed and a sum of £35,000 would be transferred into the General Fund be noted. 

REASON FOR DECISION: To show the actual expenditure on services compared to the revised budget for the period ending 31 March 2022, and the forecast outturn position, highlighting significant variances from the revised annual budget.

To consider and provide a recommendation to Cabinet on the proposals set out in the attached report. 

Jane Fineman, Head of Finance, Procurement and Parking introduced the report set out in the agenda.

Discussion and questions from Members included the following:

-       Central Government provided funding to help those who were eligible for the Council Tax Reduction Scheme.  All money received had been distributed.

-       The Grant awarded by Central Government in relation to the increase in energy costs was not a Council Tax rebate, it was an energy rebate of £150 to be given to those residents in Housing Bands A-D who paid Council Tax. 

-       The preferred mechanism for payment was via direct debit as the Council already had the details for those who used this method of payment to pay their Council Tax.  This accounted for approximately 22,000 residents. 

-       Just over 9,000 residents did not pay their Council Tax by direct debit so an alternative method of payment had to be organised.  The Council put together an application form and to date approximately 4,000 residents had now submitted their claims to the Council. 

-       Of the 4,000 claims received, 3,400 had now received the £150 payment.  Provided the bank account details had been verified, the money would have been paid into the residents account.  Where the bank details could not be verified, the £150 had been taken off their Council Tax  account. 

-       A draft proposal for the new Government discretionary scheme had been put together but it would be for Members to agree. Details would be disseminated shortly.

-       Reserves were steadily declining.  This was because over the last couple of years there had been little or no capital receipts and as such, the Council was using its Reserves to fund its Capital Programme.  

-       Going back over the last 5 years or so, back in 2018/19, surplus reserves stood at approximately £25m, it dipped a little but recovered and was slightly higher in 2021/22.  The current figure was about £4m.

-       The interest being received on unused S106 money was minimal – 0.1%. It was not ringfenced for S106 use only.

-       In order to maximise opportunities to increase the level of capital available the Council was putting its surplus cash into short term, risk free investments. 

-       Consideration could be given to ringfence the interest received from S106 money.  It would then be a decision for Cabinet. 

-       Business rates write offs were usually the result of companies going into liquidation. 

-       Savings due to employee costs were due to problems with recruiting.  The Council were endeavouring to recruit but in a buoyant employment market with very competitive salaries being offered, the Council were struggling to attract applicants.  Going forward, forecasting staffing costs had become very difficult. 

-       One measure to address this might be to offer higher salaries, but this would be a decision for Management Board.

RESOLVED – That the recommendations to Cabinet as set out in the report be supported.