Agenda item

Report of the Director of Finance enclosed.

Decision made

1. To note the contents of the report;

2. To accept the recommendations of the Scrutiny Budget and Performance Panel made on 14 June 2021;

3. To approve the re-profiled budgets and use of S.106 funding for the capital programme, which reflects forecasted underspend against the existing budgets, as detailed in Appendix C – Capital Programme and in Appendix D – S.106 Summary of Usage of Receipts.

The Cabinet Member (Finance, Property and Assets) presented a report of the Director of Finance explaining the Council’s overall financial position at the end of the financial year 2020-21.

He also referred to the recommendations of the Scrutiny Budget and Performance Panel made on 14 June 2021 which were as follows:

The Scrutiny Panel:

1.     Thanks the Cabinet Member and Director for attending and their detailed report.

2.     Notes the revenue and capital budget monitoring outturn.

3.     Welcomes the reassurance that staff vacancies are not impacting on service delivery in key areas.

4.     Asks the Cabinet Member to ensure the capital programme is deliverable in future years.

The Leader also thanked officers for their hard work during the pandemic.

One member expressed concerns and queried the proposal to use S106 monies on projects throughout the borough when, as their ward councillor, she believed it was intended solely for the benefit of residents of Buckshaw Village. One councillor also made reference to an informal conversation with a member of the Local Government Association. The Chief Executive expressed concern about this and said he would pursue the matter outside the meeting.

For clarity the Chief Executive confirmed the Council was legally entitled to enact the proposals, should they be approved. The Leader stressed that the proposals with regard to the spend of S106 monies represented the Cabinet’s policy.

Decision made

1. To note the contents of the report;

2. To accept the recommendations of the Scrutiny Budget and Performance Panel made on 14 June 2021;

3. To approve the re-profiled budgets and use of S.106 funding for the capital programme, which reflects forecasted underspend against the existing budgets, as detailed in Appendix C – Capital Programme and in Appendix D – S.106 Summary of Usage of Receipts.

4. That the Leader of the Council write to the residents of Buckshaw Village explaining the reasons for the decision concerning S106 funding.

Reasons for Decision

The Cabinet is required to consider the outturn position for the 20/21 financial year.

1. The overall position is a surplus of £570k with a further £348k from COVID funds used to support existing Council costs.

2. It is proposed to use these funds to create a number of reserves:

a.     £100k additional into the Local Plans reserve to provide sufficient funding up to 2023/24

b.     The creation of a new £400k Asset Maintenance Reserve to pay for potential future maintenance costs and part fund future capital expenditure on short-life assets such as ICT and vehicles.

c.     Creation of a £250k Income Investment Reserve to cover costs of developing new income generation projects which may not be able to be capitalised.

d.     The remaining £168k to be added to the Covid Recovery Fund.  The cost pressures of our continuing response to Covid, and of our progression through to recovery, will continue over the medium to longer term, and therefore some of the funding received over the course of 2020/21 will be required to carry forward into 2021/22 to meet the ongoing costs of Covid-19, and of any associated losses of income.

Alternative options considered and rejected

None, for the reasons given above.