Decision details

The Business Manager – Financial Services presented a report which set out the 2020/21 financial outturn position on the Council’s revenue and capital budgets including: General Fund Revenue; Housing Revenue Account; Capital Programme; Provisions and Impaired Estimates on Debtors; Usable Reserves; Collection Fund; Balance Sheet; and Treasury Management.

The accounts showed an unfavourable variance of £0.082m on service budgets with a total favourable variance of £10.413m which was broken down in the report.  It was reported that the additional income from business rates related to £0.954m in unbudgeted growth from the business rates pool together with £8.161m in additional government funding due to their policy decisions around business rates relief. As the funding was distributed as a s31 grant it must be replicated into the general fund rather than the collection fund. Therefore, the additional s31 grant that had been received was not an in year surplus, but must be earmarked in order to fund the deficit that had arisen in the collection fund as a result of the policy decision by the government. It was noted that the budget for 2021/22 was built on this basis.

The Business Manager – Financial Services also reported on the financial outturn position for the HRA which, before appropriations to reserves, showed a favourable variance of £2.175m. The main reasons for the variance were detailed in the report. The Committee were also advised on the position in respect of capital outturn and the re-profiling of capital schemes, and the position in respect of usable capital and revenue reserves.

AGREED (unanimously) that:

(a)      the final outturn of revenue and capital spending for 2020/21 be approved;

(b)      the capital financing proposals as set out in Appendix C, that will be passed to the external auditors as part of the 2020/21 Statement of Accounts, be approved;

(c)       the net variations of £10.965m not spent in 2020/21 on the Capital Programme, be re-profiled and carried forward into 2021/22;

(d)      the movement in Provisions and Impaired Estimates on Debtors be approved;

(e)      the creations of the new reserves, as outlined in paragraph 2.19 to the report, be approved;

(f)        the individual contributions to, and withdrawals from, the revenue and capital Usable Reserves be approved;

(g)      the contents of the Pension Fund Actuary report and the proposed assumptions to be used in the IAS19 pensions report for inclusion in the 2020/21 Statement of Accounts be approved;

(h)     the Policy & Finance Committee receives the Annual Report on Treasury Management Activity and comments as appropriate for referral onto the Council for information, as required by the Chartered Institute of Public Finance and Accountancy’s Code of Practice on Treasury Management; and

(i)        the Committee note that the Treasury Management activities are consistent with the objectives identified in the Treasury Management Strategy for 2020/21.

Reasons for Decision

To approve the Financial Outturn for the Council for the 2020/21 financial year.