Agenda item - 2020-2021 Performance Report (Quarter 2)

Agenda item

2020-2021 Performance Report (Quarter 2)

Report number: PAS/WS/20/017

Minutes:

The Service Manager (Finance and Resources) presented Report number PAS/WS/20/017, which set out the Quarter 2 performance and financial outturn position for 2020-2021 up to 30 September 2020, and the impact of Covid-19; next steps and principles for future financial planning.

 

Since the outbreak of Covid-19 in the UK, a number of events had occurred which had had a significant impact on West Suffolk Council’s financial position.  Some of these had been restrictions imposed by Government that had affected West Suffolk Council’s investments and services; and others had been announcements of Government financial support. 

 

The Council had played its part in responding to Covid-19 in supporting businesses and the most vulnerable as well as running essential services.  The monthly returns to the Ministry for Housing, Communities and Local Government had detailed the financial impacts of Covid-19, and generally the forecast impacts had remained consistent on a month by month basis.  The latest submission showed a total impact of £11.2m (costs of £2.9m and lost income of £8.3m).  However, it should be noted that these were required to be gross figures and therefore an element of the additional costs such as internal staff redeployment and costs savings had also been factored into the figures.

 

Through the work of the council and funding of these costs through existing budgets the current forecast showed these variances to reduce to a cost of £1.1m and has impacted on a number of our local performance indicators, most noticeably around housing and homelessness.  Equally the income expected to be generated by the council in the current financial year through sales, fees, and charges and so on was expected to reduce by £6.8m. 

 

The impact of Covid-19 was likely to be felt for years to come as the council will need to make provision in its medium-term budget plans for the impact on the collection fund deficits, and the replenishment of its earmarked reserves and general fund balances.

 

Attached to the Quarter 2 performance report were a number of appendices which set out the performance and financial outturn position for 2020 to 2021 up to 30 September 2020, as follows:  

 

-      Appendix A: Performance Indicators – Commentary

-      Appendix B: Performance Indicators – Growth

-      Appendix C: Performance Indicators – Families and Communities

-      Appendix D: Performance Indicators – Housing

-      Appendix E: Performance Indicators – Day to Day

-      Appendix F: Income and Expenditure Report

-      Appendix G: Capital Programme

-      Appendix H: Earmarked Reserves

-      Appendix I: Strategic Risk Register

 

Members considered the report in detail and asked questions of the Assistant Directors, to which responses were provided, such as whether the council would be looking at new ways of working digitally and solar panels on business units.  Detailed discussions were also held on:

 

Appendix A: (Income from entire property portfolio) – Members questioned the process regarding tenancy/lease renewals during the pandemic.

 

Members were informed that Hazels were the council’s agents for industrial properties in Mildenhall under question.  Hazels maintain dialogue with the council regarding their discussions with tenants on lease/tenancy renewals which was an onging process.  Understanding the current difficulties for some businesses during the pandemic, tenants were encouraged to engage early in such discusions to explore what flexibility could be offered to support them in this process. 

 

Appendix C: (Homelessness and the impact of Covid).

 

Members were informed that the Council still had a high number of people requiring accommodation.  The Council had increased its winter weather provision and was supporting families so they could stay in their homes.

 

Appendix C: (Number of fly-tipping incidents recorded in West Suffolk) – Members asked how much was a fixed penalty notice?

 

Member were informed that the cost was £90. 

 

Post meeting note: The above figure was given in error at the meeting.  The actual cost was as follows - Any person issued a Fixed Penalty Notice for fly-tipping would have 14 days to comply by paying £200, which was reduced to £120 if paid within 10 days. 

 

Appendix E: (Car park income) – Members asked whether the parking figures and fixed penalties reported were after costs, and if not, whether the figures could be reported separately.

 

Members were informed that the figures reported were purely income derived.  Costs would need to be split between on and off-street parking.

 

In response to a question raised regarding the playpark on Great Heath Estate, Mildenhall and whether the monies which had been allocated to the project were protected, officers agreed to provide a written response.

 

At the conclusion of the discussions, the Committee noted the:

 

-      Impact of Covid-19 on the Council’s current financial year 2020 to 2021 (Section 1 of the report).

 

-      Next steps and principles for future planning (Section 2 of the report).

 

-      2020 to 2021 Revenue and Capital positions as detailed in the report and appendices. 

 

Supporting documents:

 

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