Issue - meetings

This report provides the details of the County Council’s 2020/21 financial position as at 31^st July 2020 (M4) for revenue and capital budgets and the projected outlook for the financial year. As there was no Cabinet meeting in August at which the June (M3) position could be presented, this report compares the M4 position to M2, as reported to Cabinet in July. 

[The decisions on this item can be called in by the Resources & Performance Select Committee]

RESOLVED:

1.    That the Council’s forecast revenue and capital budget positions for the year be noted.

2.    That the transfer of the balance of the CV-19 funding (£1.9m) and amended revenue budget baseline as £1,019.7m be noted.

3.    That the addition of the 20/21 contingency (£20.4m) to the Budget Equalisation Reserve be approved.

Reason for Decision:

This report is to comply with the agreed policy of providing a monthly budget monitoring report to Cabinet for approval of any necessary actions.

[The decisions on this item can be called in by the Resources and Performance Select Committee]

The Cabinet Member for Finance explained that as at July 2020 (M4) the Council is forecasting a deficit of £9.1m, against a budget of£1,019.7m.The main drivers of the unfavourable variance are children’s services and relate to demand in corporate parenting, SEND placements and a higher cost of staffing. Waste is also reflecting an additional cost of £2.9m. All other services at this point are forecasting at the end of the financial year to be within a narrow margin of their respective spending targets. Funding received from Government of £53.3m together with year date incurred costs have been allocated across services impacted by Covid-19 and as a result the annual budget has been adjusted. £20.4m had been transferred to the budget equalisation reserve At M4, the capital budget has been restated from to £230.1m to reflect the purchase of and other costs relating to the Woodhatch site in Reigate.

RESOLVED:

1.    That the Council’s forecast revenue and capital budget positions for the year be noted.

2.    That the transfer of the balance of the CV-19 funding (£1.9m) and amended revenue budget baseline as £1,019.7m be noted.

3.    That the addition of the 20/21 contingency (£20.4m) to the Budget Equalisation Reserve be approved.

Reason for Decision:

This report is to comply with the agreed policy of providing a monthly budget monitoring report to Cabinet for approval of any necessary actions.

[The decisions on this item can be called in by the Resources and Performance Select Committee]