Agenda item - Finance Outturn 2019/20 and Reserves

Agenda item

Finance Outturn 2019/20 and Reserves

Minutes:

The Executive Director of Finance and Corporate Resources presented the Financial Outturn Report 2019/20 and Reserves and in so doing highlighted the following for Members’ consideration:

 

·                There had been an overall underspend, across all Council departments, of £231,000 in 2019/20.

·                However, there had been an overspend of £136,000 during the year in respect of the strategic purpose ‘keep my place safe and looking good’.

·                A key area of savings had been in respect of Enabling Services, at £314,000.

·                A total of £396,000 had been returned to balances at the end of the year.

·                The capital budget had been increased from £4.515 million to £11.9 million but there had been an underspend in the budget of £8.3 million.

·                Heads of Service had recognised that the Capital Programme needed to be reviewed and more accurate forecasting put in place as the Council’s underspend in the Capital Programme had implications for borrowing.

·                The Council’s reserves would be useful moving forward in respect of enabling the authority to respond to community needs following the Covid-19 pandemic.

·                The Constitution Review Working Group (CRWG) would be invited to meet to discuss delegations to the Section 151 Officer in respect of grants and use of Section 106 funding.  Currently all such proposals had to be reported to Council and this caused delays.

 

Members subsequently discussed the report in detail and commented on the following points:

 

·                The justification for the level of savings that had been achieved in 2019/20 and the reasons why the final budget position was different to that which had been anticipated in the Medium Term Financial Plan (MTFP).  Officers explained that the Financial Services Team were undertaking a review of the savings that had been achieved and the causes of this.

·                The opportunity to use some of the savings that had been generated during the year to support local residents and businesses impacted by the Covid-19 pandemic.

·                The reasons for the underspend in the Capital Programme.  Members noted that some planned capital expenditure would have been postponed due to the Covid-19 pandemic and lockdown.

·                The impact of the Covid-19 pandemic on the local economy, particularly the retail sector, and the need to support businesses effected by the reduction in footfall.

·                The potential for the Council to make investments under the Council’s Investments and Acquisitions Strategy in order to generate income as well as to support local businesses.  Officers explained that, whilst opportunities had been identified, none had been found to have a sufficient level of return to justify the investment to date.  However, the Council might want to consider making investments that would result in a social value moving forward.

·                The potential for Council investments to support economic development in Bromsgrove town centre and the retailers located in other parts of the district.

·                The impact that the withdrawal of the furlough scheme might have on unemployment levels locally and the need for the Council to support businesses and job opportunities to help address this risk.

·                The skills required by local businesses in the Twenty First Century and the need to ensure that young people aged 16 to 25 were trained to develop these skills.

·                The work that the Council was undertaking with colleagues from Worcestershire County Council to understand the funding available for training and the skillset required by local businesses.

 

RESOLVED that

 

(1)      the current financial position in relation to revenue and capital budgets for the Financial Year April 2019 – March 2020 be noted;

 

RECOMMENDED that

 

(2)      The movement of £381k in existing reserves be approved;

(3)      The addition of new reserves of £1,411k be approved;

(4)      The carry forward to the 2020/21 capital programme of £8,600k be approved;

(5)      An increase in the 2020/21 Capital Programme of £163k for Disabled Facilities Grants be approved. This is due to the budget allocations having now been announced by the Ministry of Housing, Communities and Local Government (MHCLG). This will increase the available budget to £913k;

(6)      An increase in the 2020/21 Capital Programme of £119k for additional funds towards the already approved capital project for Environmental services new IT system, to be funded from borrowing, be approved;

(7)      Approval of the funding from balances of the overspend from the demolition of the Dolphin Centre of £217k;

(8)      An increase in the 2020/21 Capital programme 2019/20 of £100k due to match funding being received for a ULEV Taxi infrastructure scheme in Bromsgrove be approved;

(9)      An increase to the revenue budget for 2020/21, due to receiving £40k SEP Grant (Strategic Economic Plan), be approved;

(10)   An increase to the Capital programme 2020/21 of £13k s106 monies for the Bromsgrove Town Centre be approved;

An increase to the Capital programme 2020/21 of £150k ringfenced capital receipts for a grant to be provided to BDHT for the provision on new affordable homes be approved.

 

 

Supporting documents: