Agenda item

Report number: PAS/WS/21/002

The Service Manager (Finance and Resources) presented Report number PAS/WS/21/002, which set out the Quarter 3 performance and financial outturn position for 2020-2021 up to 31 December 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 £11.3m (costs of £3.1m and lost income of £8.2m).  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, funding of these costs through existing budgets the external grants the current forecast showed these variances to reduce to an overall impact of £2.6m on the council’s budget, of which £1.4m was on the council’s general fund balance.  This had consequently impacted on a number of our local performance indicators, most noticeably around housing and homelessness. 

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 3 performance report were a number of appendices which set out the performance and financial outturn position for 2020 to 2021 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.  Discussions were also held on whether the temporary housing units in Olding Road, Bury St Edmunds were still being used; government grants; staff sickness reporting which had fallen and whether performance indicators for 2021-2022 would be adjusted upwards, for instance the Key Performance Indicator for the percentage of contacts made online or by email.

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.