Agenda item

Quarterly Performance Monitor - Outturn 2020/21 (CAB04_21/22)

Decision:

Following consideration of the report, Cabinet resolved to:

 

1.   Note the information contained in the Quarterly Performance Monitor, in particular the outturn financial position

2.   Agree the allocation of the contingency budget and underspend set out below:

 

It is proposed that the total corporate underspend of £8.923m, which is made up of £3.144m from portfolio underspending, £5.676m of unused Contingency budget and £0.103m of other non-portfolio underspending, is transferred to the following reserves:

·       £4.700m Adults and Health Pressures and Recovery Reserve – to fund anticipated pandemic rebound pressures in 2021/22.

·       £1.200m Ash Dieback Reserve – to accelerate critical tree felling works in 2021/22.

·       £3.023m Service Transformation Reserve – in-year homeworking/ change in service delivery savings to be used to fund future innovative projects.

The call-in deadline is 5 August 2021.

Minutes:

10.1      Cabinet considered a report by the Director of Finance and Support Services. The report was introduced by Cllr Jeremy Hunt, Cabinet Member for Finance and Property who described a challenging year, but that significant funding from government had helped to address the impact of COVID-19. Although the year had ended with an underspend of £8m, the longer-term impact of the pandemic remained unknown and other financial pressures were building. The Director of Finance and Support Services added that there were a number of uncertainties ahead including collection rates for council tax and business rates and the overspend on the Dedicated Schools Grant (DSG) was a significant challenge. There had been some financial benefits including staff working remotely, a reduction in travel and the use of online training.

 

10.2      Cllr Pieter Montyn, Chairman of the Performance and Finance Scrutiny Committee asked how the underspend passed to reserves was to be prioritised, how unspent grants could be avoided in future and whether issues with the Capita contract could have been resolved earlier. He also asked whether delayed capital investments would be caught up during the year and what action could help reduce staff sickness absence.

 

10.3      Cabinet Members made the following points in discussion:

 

Ø  Cllr Amanda Jupp advised that unusual circumstances created by the pandemic led to a significant fall off in demand on care services, however this demand would rise again across all areas.

Ø  Cllr Nigel Jupp advised that proposals were being developed to reduce the overspend on the DSG. Underlying causes were being considered to combat the overspend, such as working with schools to become more inclusive, efficiencies and working with parents.

Ø  Cllr Steve Waight advised that the payment to Capita was arrived at after negotiations over increased activity. He advised that sickness absence due to stress and anxiety is  being looked at. He noted that the council had had a good year in terms of performance and that staff, both frontline and support should be congratulated. He highlighted the reduction in travel and contributions to greenhouse gases and the key work of the service transformation fund which helped with the overall operation of the council.

Ø  Cllr Jacquie Russell advised the required placement numbers for children had exceeded expectations which meant external fostering arrangements had to be sought. Case loads had increased and agency staff expenditure was a further contributor to the outturn variation of £1.5m, however, despite the pandemic, savings had either been delivered in full or temporarily mitigated to enable the use of underspend elsewhere.

Ø  Cllr Duncan Crow advised the Independent Advisory Panel had recognised the progress made within the Fire and Rescue Service. COVID-19 had presented a challenge for the FRS in being proactive in preventative work. Staff within the service had been supporting the emergency response and had received a COVID-19 inspection. The response to critical fires had exceeded the target for the first time in several years. An underspend in the communities budget was due to closed libraries and reduced staff travel but staff from libraries had taken on new tasks such as working with the community hub.

Ø  Cllr Deborah Urquhart advised that forecasting spend was a difficult challenge as was predicting waste and recycling tonnage. She advised the Ash Dieback process needed to commence as soon as possible.

Ø  Cllr Paul Marshall advised demand profiling during the pandemic was a very difficult task and service demand did not align with fiscal years. He added the support from Government in 2020/21 to deliver COVID-19 mitigation had enabled a capable financial position.

 

10.4      Cllr Hunt summarised that the position in December 2020 was reported without the expectation of the grants then received. The council needed to remain in a sound financial position to enable any challenges ahead to be met and managed.

 

10.5      Resolved – that Cabinet:

 

1.   Notes the information contained in the Quarterly Performance Monitor, in particular the outturn financial position

 

2.   Agrees the allocation of the contingency budget and underspend set out in paragraph 2.1 below:

 

It is proposed that the total corporate underspend of £8.923m, which is made up of £3.144m from portfolio underspending, £5.676m of unused Contingency budget and £0.103m of other non-portfolio underspending, is transferred to the following reserves:

·       £4.700m Adults and Health Pressures and Recovery Reserve – to fund anticipated pandemic rebound pressures in 2021/22.

·       £1.200m Ash Dieback Reserve – to accelerate critical tree felling works in 2021/22.

·       £3.023m Service Transformation Reserve – in-year homeworking/ change in service delivery savings to be used to fund future innovative projects.

 

Supporting documents: