Agenda item

Peter Stuart, Head of Corporate Resources introduced the report noting that the forecast revenue outturn overspend is approximately £1.8m after Government support has been factored in. This is related to a significant reduction in income as a result of the pandemic.

He noted that treasury management income is projected as being under target by £206k this year, as it is the start of minimal interest returns for the period. It is foreseen that there may be a long period where interest income may be below target. He acknowledged that the forecast outturn will vary by the end of the year as things are changing at pace. The financial impact of the second lockdown and the Government’s spending review is yet to be seen but the Council remains alert to the changes and agile in its response.

The Deputy Leader acknowledged that the Council’s prudent financial planning has enabled the ability to draw on reserves and noted that the Council isn’t forecasting a loss in ground rent income.  It was clarified that this ground rent relates to outdoor facilities income such as playgroups. The Deputy Leader also noted that although some revenue projects have been delayed, work is continuing, for example at Silver Birches where drainage work is now complete, at an underspend.

The Cabinet Member for Community acknowledged the increase in unemployment, and commended Officers for the support provided to businesses particularly with the speed that grants have been issued.  He noted that the Council has a very productive relationship with the Coast to Capital Local Enterprise Partnership and Homes England, who are financing a significant number of the Council’s capital projects. He also highlighted the positive news of £45k allocated to new play equipment at King George’s Field, and £32k allocated for a new skatepark.

The Head of Corporate Resources confirmed that the 4th tranche of the Covid Emergency Grant has been received from the Government and that the first 6 months of the budgeted pay award has been paid to Officers in October.

The Cabinet Member for Economic Growth noted that Officers continue to look at ways to mitigate the forecast net overspend and thanked Officers for the high volume of work that continues on capital projects despite the pandemic. In response to his query on the £85k bad debt rental income amount, the Head of Corporate Resources confirmed that retailers are asking for more deferments or holidays and the Council continues to negotiate.  At a certain point the debt becomes a bad debt book entry and there is hope that as the year progresses some of this can be recovered. The Cabinet Member expressed a wish for the Council to remain supportive of retailers wherever possible – acknowledging that there was a fine balance between support and doing the right thing by the public purse and the Council’s estate.

The Assistant Chief Executive confirmed that it is too early to assess the impact of the second lockdown on parking income, however parking charges have not been suspended and some shops remain open for click-and-collect so the impact may not be as severe as earlier in the year.

The Cabinet Member for Customer Services reiterated the speed at which the Council is working to distribute grant funding to those in need and thanked the Officers for their work in this respect.

In relation to outdoor facilities income, the Cabinet Member for Housing and Planning noted that nurseries and playgroups are able to operate quite successfully with less restrictions if they are the sole users of a property. They are therefore in a position to still get full income without higher costs.

The Leader concluded that although it is unprecedented times, the Council’s current position is not uncommon among Local Authorities and work continues to manage the financial challenges due to falling income and rising service costs partly with the use of Government grants and the use of reserves.

He took the Members to the recommendations contained in the report which were agreed unanimously.

RESOLVED

The Cabinet agreed to recommend to Council for approval:

(i)         that £3,862 grant income relating to Rough Sleepers Initiative be transferred to Specific Reserve as detailed in paragraph 36;

(ii)        the variations to the Capital Programme contained in paragraph 53 in    accordance with the Council’s Financial Procedure rule B3.

And noted:

(iii)       the remainder of the report.