Decision details

The Business Manager – Financial Services presented a report which compared the Revised Budgets with the Projected Outturn forecast for the period ending 31 March 2021. The forecast was based on eight months performance on the Council’s revenue and capital budgets including the General Fund Revenue, Housing Revenue Account (HRA) and Capital Programme. The accounts showed a projected unfavourable variance against the revised budget of £0.942m on service budgets, with an overall unfavourable variance of £0.478m. Appendix A to the report detailed the variances in service areas and other budgets.

It was noted that the main reason for the projected unfavourable variance of £0.942m was because the Council was predicted to receive £1.719m less income from sales, fees and charges than budgeted for. However, it was estimated that the Council would be able to claim between £0.400m and £0.500m from the government in compensation for loss of income which would reduce the projected overall unfavourable variance.

The HRA budget showed a projected favourable variance against the revised budget of £2.042m. In respect of the Capital Programme, the additions and amendments which required approval were detailed in Appendix C to the report. If these variations were approved the revised budget would be reduced to £35.906m.

AGREED (unanimously) that:

(a)                           the General Fund projected unfavourable outturn variance of between £0.078m (unfavourable) and £(0.022)m (favourable) be noted;

(b)                        the Housing Revenue Account projected favourable outturn variance of £2.042m be noted;

(c)                the variations to the Capital Programme at Appendix C be approved;                and

(d)               the Capital Programme revised budget and financing of £35.906m be                         approved.

Reason for Decision

To update Members with the forecast outturn position for the 2020/21 financial year.