Agenda item

2021-2022 Performance Report (Quarter 3)

Report number: PAS/WS/22/004



(Report number PAS/WS/22/004)


The Committee received this report which set out the Quarter 3 performance and financial outturn position for 2021 to 2022 up to 31 December 2021, along with 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 the Council’s financial position.  Some of these had been restrictions imposed by Government that had affected the Council’s investments and services and others had been announcements of Government financial support.


On 21 December 2021, central Government had announced a new set of funding for business grants to the hospitality and leisure sector.  This funding was split between a national scheme (up to £6,000 per business) and a new amount of Additional Restrictions Grant funding where criteria was set at the district level.  The amount of funding and definition of the national scheme had yet to be clarified.


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, now bi-monthly returns to the Department for Levelling Up, Housing, Communities had detailed the financial impacts of COVID-19, and generally the forecast impacts have remained consistent on a month-by-month basis.  The latest submission showed a total impact of £4.3 million (costs of £1.8 million and lost income of £2.5 million).  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, grant funded costs and costs savings have also been factored into the figures.


COVID-19 and the Council’s response to it had consequently impacted on a number of our local performance indicators, most noticeably around housing and homelessness, income indicators and the aged debt amount.  Within these figures, the income generated by the Council in the current financial year through sales, fees and charges had reduced by £2.5 million, mitigated to a certain extent by the sales, fees and charges compensation from central government.  (Further details of the financial impacts of COVID-19 can be found in Appendix F).


The level of debt over 90 days had been a focus for management during the year.  Quarter 3 data showed that this now stood at a total of £978,244.  This was an improvement of £68,173 on the Quarter 2 figures.  Commercial Property debt made up £670,678 (68 percent) of this position and £477,139 of this debt relates to just three tenants.  The Council was continuing to work very closely with all of its tenants to clear outstanding rent arrears.  Exempt Appendix J showed the split of the Aged Debt by service area and a split of the commercial property debt.


The impact of COVID-19 was likely to be felt for years to come as the Council would need to make provision in its medium-term budget plans for the impact on the collection fund deficits, recovery to pre-covid income and expenditure levels 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 2021 to 2022 up to 31 December 2021 as follows:  


-      Appendix A: Performance Indicators – Commentary

-      Appendix B: Performance Indicators – Inclusive 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

-      Exempt Appendix J – Aged debt over 90 days


Members considered the report in detail and asked questions of the Directors present, to which responses were provided, particularly in relation to small businesses, housing/homelessness, flytipping and Customer Services contacts.  The Committee also discussed the total amount of aged debt over 90 days (as set out in Exempt Appendix J) and went into ‘private’ session to discuss this in more detail (see Minute Number 105 below).


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


-      Impact of COVID 19 on the Council’s current financial year 2021 to 2022.


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


Supporting documents: