Agenda item

The Deputy Leader of the Council presented the Draft Financial Outturn Report for 2021-2022 and informed the Committee that despite ongoing economic uncertainty, the overall position of the Council was favourable.  An overview of the provisional outturn was presented along with detailed information for the General Fund and the Housing Revenue Account. 

Continued uncertainty has brought financial pressures, particularly in the areas or Markets and Car Parking and this was expected to continue.  The Covid Reserve Fund that was introduced to protect the Council against unexpected costs during the Pandemic could now be closed down and transferred into other reserves.

It is proposed to carry a number of budgets forward into 2022/23 to fund specific and previously approved projects.  The Finance, Economic Development and Corporate Services Overview and Scrutiny Committee recommended these on 27 June 2022 for Cabinet approval on 12 July 2022.

It was acknowledged that the recommended £500,000 in order to establish an inflation reserve was most likely to be insufficient but the ongoing position was being closely monitored on a regular basis.

During discussion Members raised the following points:

·            More Council housing needed to be built to replace to housing stock that the Council lost through Right to Buy sales.

·            As there were underspends recorded within the Housing Revenue Capital Programme, could this be invested in the building of more Council Housing?

·            Members acknowledged that progress had been made with housing inspections and energy efficiencies.

The Chief Finance Officer informed the Committee that the building of more Council housing was a complex issue.  Funds were limited and there were competing pressures ensuring a balance had to be struck between building more houses and maintaining current stock.  A mixed approach could be adopted as the Council could potentially consider working with partners or support local social Housing Associations.  These considerations were to be put before the Finance, Economic Development and Corporate Services Overview and Scrutiny Committee later this year but limited investment would be made until the findings of the stock condition analysis were confirmed.

The Vice-Chairman of the Committee noted that the format of the report was difficult to access clearly online and requested that the format be amended to make the information more clearly available.  The Deputy Leader of the Council acknowledged this and explained the format had been agreed by the previous Chairman but that changes could be made in future publications.

AGREED:

That the Governance and Audit Committee:

a)       Reviewed and approved the provisional Revenue and Capital    Outturn report and associated appendices for the financial year 2021/22.

b)      Noted the budget carry forwards (appendices D and H) as approved by Cabinet on 12 July 2022.

c)      Reviewed and approved the following reserve movements in respect of the General Fund:

·                   The balance of the COVID recovery reserve of £1.286m transferred to the ICT reserve increased by £0.202m

·                                                Waste and recycling reserve increased by £0.084m

·                                                Creation of an Inflation reserve to £0.500m

·                                                Invest to save reserve increased by £0.500m