Agenda item

Report number: PAS/WS/21/012

The Service Manager (Resources and Performance) presented report number: PAS/WS/21/012, which set out the impact of Covid-19 and the Quarter 1 performance and forecast year-end financial position for 2021 to 2022. 

The Service Manager (Resources and Performance) referred to page 13 of the report, setting out the key headlines for the current revenue outturn position, which showed a balanced forecast year end position.  This position took into account the £2m provision for the effects of Covid-19 in the 2021 to 2022 approved budget, based on £1.1m anticipated pressures and utilisation of the £0.9m local authority Covid-19 support grant. 

Whilst the overall level of the council’s General Fund and reserve would be reassessed in light of the pandemic, a small amount of the General Fund (£3,000) was proposed to be utilised in order to fund the remaining forecast deficit.  The council’s financial position and ability to reduce the impact where possible had been helped by previous financial planning and the creation of the West Suffolk Council as well as quick and effective action to reduce costs as guidance and infection rates changed.

The Service Manager (Resources and Performance) then referred to page 14 of the report, which set out a graphical representation on how Covid-19 had impacted the council over the year.  The first graph showed the financial impact of Covid-19 and the second graph showed how the impact had been mitigated.

Attached to the Quarter 1 performance report were a number of appendices which set out the performance and financial position for 2021-2022, 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 19 of the report, which set out the financial summary and the key performance indicators which showed pressure in finding temporary accommodation.  There was also an impact on the council’s income drivers, for example on car parking income and the Apex, and the debt position was still over 90 days, which related to small number of historic property related debts.  However, there were green indicators relating to income from trade waste and street scene services.

Members considered the report in detail and asked questions to which responses were provided. 

In particular discussions were held on the following:

-      Total amount of debt over 90 days – Officers explained that the bad debt provision for 2021-2022 had increased by £100k. Out of the £903,803 debt over 90 days, £650k related to previous years debt.

-      Appendix E (Performance Indicators – day-to-day) - “Percentage of collection of business rates” and the National Health Service (NHS) trusts claim for charitable rate relief.  Officers explained the NHS trusts had lodged an appeal with the High Court, which had now been withdrawn and was no longer a risk to the council;

-      Appendix G (Capital Programme) - “High Street, Haverhill improvements” - Members sought assurances around what was meant by the “fund being reviewed”;

-      Appendix G (Capital Programme) – Brandon Leisure Centre - Officers confirmed that the project was on track and on budget.

-      Whether the Apex was now back to full capacity – Officers confirmed the council was monitoring the up-take on ticket sales; and

-      How well the council was positioned financially if there was another Covid-19 lockdown.

In response to a question raised relating to historical debt, members were informed that there were a small number of properties with large debts.  This includes a number of national firms who were refusing to pay nationally.  Steps were being taken to address this and some progress was being made.  The Government had extended the moratorium on commercial evictions to March 2022. 

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 2021 to 2022.

-       Forecast for the 2021 to 2022 Revenue and Capital positions as detailed in the report and appendices.