Agenda item

Report number: PAS/WS/21/008

The Service Manager (Resources and Performance) presented Report number: PAS/WS/21/008, which set out the impact of Covid-19 and the Quarter 4 performance and financial outturn summary for the year ending 31 March 2021. 

The Service Manager (Resources and Performance) set out the key headlines for the outturn position and referred to page 105 of the report, which showed the outturn position for the year 2020-2021.  The position had improved from the previous position reported in Quarter 3. Funding of additional Covid-19 related costs had been achieved through the work of the council, utilising existing budgets, delivery of Covid-19 related initiatives with existing resources and external grants.  This meant the year end position showed these variances to reduce to an overall impact of £1,359,000.  The deficit would be funded largely from the previously agreed use of the in-year 2020 to 2021 New Homes Bonus allocation which was previously allocated to support strategic projects.  The net deficit balance of £159,000 would then be funded from the council’s general fund balance as the council closed the final accounts for 2020-2021.

The Service Manager (Resources and Performance) then referred to page 106 of the report, which set out a graphical representation on how Covid-19 had impacted the council over the year.  The second graph showed the council’s income had reduced by £8.6m, with increased costs of £3.6m giving an overall impact of £12.2m on the council’s finances over the year.  The first graph showed how the impact had been mitigated and reduced the overall impact by £159k.  The majority of which had been achieved from central government grants to cover some of the shortfalls and costs incurred, and the use of the New Homes Bonus and in-year efficiencies. 

From a financial perspective, the council had spent £31.9m of its capital budget, out of a total of £83.6m for the year on Barley Homes and the Mildenhall Hub projects.  The difference was due to the phasing of some of the capital projects, for example the Western Way Development, which had been carried forward into 2021-2022, and some of the invest for growth funds which had also been carried forward.

The earmarked reserves position at the end of the year was £37.6m, which had improved from where the council thought it would be by the end of the year.  This was primarily due to the net under-utilisation of underspends on fleet phasing in terms of what’s spent on vehicle replacements.  As the council had not borrowed externally in the year this had meant the council did not have to fund as much as originally expected.

Attached to the Quarter 4 report were a number of appendices which set out in more detail the performance indicators and financial outturn for 2020-2021, 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

The Service Manager (Resources and Performance) then referred to page 109 of the report which set out the financial summary and the key performance indicators, which showed the same trends as previously reported during the year.  There had been significant hits on the council’s key income drivers, for example, car parking income, trade waste and the Apex over the year.  The debt position had been rising over the year, which had continued into the quarter 4 performance.  The other key impact all the way through 2020-2021 had been the challenges faced with homelessness, temporary accommodation and bed and breakfast accommodation against the targets set back in 2020.

Members considered the report and asked questions to which responses were provided.  In particular discussions were held on Barley Homes as set out in Appendix G (Capital Programme) regarding the revised budget for the year; the management of property units and whether these could be managed in-house; and the number of households in bed and breakfast accommodation.  Officers explained they were working with landlords and the Anglia Revenues Partnership in managing evictions to try and avoid the use of bed and breakfast accommodation for people coming through the system.

In response to a question raised regarding whether there were any specific regulations for people setting up caravan pitches in back gardens, officers indicated they would raise this matter with the planning and council tax services for a written response.

The Vice-Chair, Councillor Karen Richardson wished it to be minuted regarding the professionalism of the homelessness team who acted with speed in a recent homelessness case she had been involved in.

At the conclusion of the discussions, and there being no decision required, the Committee noted the:

-       Impact of Covid-19 on the Council’s current financial year 2020 to 2021.

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