Issue - meetings

A report by the Director of Finance and Support Services setting out the performance and finance position as at Quarter 4 End of Year 2019/20.

The Committee is asked to examine the data and supporting commentary for the Quarter 4 End of Year 2019/20 TPM and make any recommendations for action to the relevant Cabinet Member or Scrutiny Committee.

66.1  The Committee considered the Quarter 4 End of Year 2019/20 Total Performance Monitor (TPM) report from the Director of Finance and Support Services (copy appended to the signed minutes).

66.2  The Cabinet Member for Finance introduced the report and informed the Committee that the financial outturn was in line with that forecasted, ending the year with £0.5m less overspend than predicted.  The overspend will be funded by a draw down from reserve funds as outlined in the report.  2019/20 has been a testing year due to the £17m fund provided for the Children’s Services Improvement Plan and £1.4m for the Fire & Rescue Service Improvement Plan; interim reports show both Plans are on course to deliver the expected improvements. The outbreak of Covid-19 has been a further budget challenge at the end of year 2019/20, and all 2020/21 budget assumptions will be reviewed in light of Covid-19.  The Cabinet Member welcomed comments from the Committee ahead of the decision report being considered by Cabinet on 26 May 2020.

66.3  The Director of Finance and Support Services introduced the finance aspect of the report and highlighted that the forecasting for the year was realistic.  Capital receipts flexibility was used in October 2019 to fund the overspend.  The failure to deliver savings in-year is significant and officers understand why that occurred.  The current challenge regarding Covid-19 leads to uncertain demands for the year 2020/21 and a more fragile financial position; the reset West Sussex Plan will reconsider the resource implications for the current year.

66.4  The Committee made comments in relation to the TPM finance report including those that follow. It:

·       Recognised that 2019/20 has presented financial challenges, that the eventual outturn was forecast in the first half of the year and brought under control during the second half of the year resulting in further potential overspends being avoided.  The Committee noted that the report largely reflects the position prior to the effects attributable to the Covid-19 pandemic.

·       Highlighted the £15m overspend for 2019/20, the current £85m Covid-19 spend, and the £34m fund provided by central Government towards the additional cost, and queried whether the Council will face future financial difficulties.  Queried whether further funds will come from central government to help fund the Covid-19 response and how our financial situation compares to that of other authorities.  The Leader explained the situation is being closely monitored, the Council has received £36m from central government already, and further funds have been committed by the Minister for Housing, Communities and Local Government.  The Leader meets weekly with West Sussex MPs who support the Council and represent to central Government, in addition to regular County Council Network (CCN) meetings which represent the Council’s needs and presses for further funding.

·       Noted the significant budget funding uplift required in 2019/20 due to the Children’s Services and Fire & Rescue Service Improvement Plans needed to bring the services up to standard.  Noted that work is continuing and both Improvement Plans are on the right course, however the improvements made  ...  view the full minutes text for item 66