Issue - meetings
Quarter 2 Financial Report 2021/22
Meeting: 11/10/2021 - Cabinet (Item 10)
This report sets out the current Q2 forecast of income and expenditure versus the revenue budget for 2021/22 and other key financial data.
- 10a. Appendix A Savings Delivery Tracker Q2, item 10 PDF 69 KB
- 10b. Appendix B Recovery Initiatives Q2, item 10 PDF 233 KB
- Webcast for Quarter 2 Financial Report 2021/22
(1) To note the overall financial position as detailed within the Quarter 2 update and the actions being taken to manage the issues highlighted within the report.
(2) To note the budget setting strategy for 2022/23,
Councillor McLennan, as Deputy Leader and Lead Member for Resources, introduced a report which detailed the current (Quarter 2) forecast of income and expenditure against the revenue budget for 2021/22 and other key financial data.
In considering the report, Cabinet noted the total pressures currently forecast for the year, which amounted to £4.2m in relation to the Dedicated Schools Grant (DSG). Members also noted the details provided in relation to the recovery initiatives along with risks and uncertainties identified across each service and budget area. Whilst significant uncertainties remained in relation to the recovery from the pandemic, members were advised that the 2021/22 budget had been set to accommodate the additional costs and loss of income arising as a result and it was currently anticipated that the pressures identified could be contained within the growth provided to service areas. With the exception of the pressure identified in relation to the DSG, the forecasts in relation to both the General Fund and Housing Revenue Account (HRA) currently matched the budget position and assumptions agreed for the year.
Members attention was also drawn to the progress being made in relation to delivery of the budget savings agreed for 2021/22 – 2022/23 as detailed within Appendix A of the report. The majority of savings (£6.9m) remained on track with mitigating actions agreed in relation to the £0.8m currently identified as delayed. Details were also provided on the progress being made in relation to delivery of the various initiatives funded in July 21 to promote recovery from the pandemic, as detailed within Appendix B of the report.
In terms of new and emerging risks, Cabinet were advised of the pressures identified in relation to the significant increase in asylum seekers and refugees arriving in the UK, as detailed within section 1.4 of the report. Whilst the Council remained committed to supporting vulnerable families and individuals seeking asylum, members remained focussed on ensuring the dispersal scheme was proportionate and reasonable across all London Boroughs and that the funding provided was sufficient to cover all anticipated pressures across adult social care, children’s services, public health, housing and community safety.
As a final update, Cabinet noted that it was anticipated that the Governments Spending Review would be finalised at the end of October 21 based on a three year settlement for Local Government covering 2022/23 – 2025/26. It was expected this would include further details relating to the Health & Social Care Levy as well as other existing social care grants and schemes such as the Improved Better Care Fund, Social Care Grant and Adult Social Care precept. Given the timing of the announcement and the wider changes expected to be included as part of the settlement, it was now planned to publish the Council’s draft 2022/23 budget in December 21 in order to allow sufficient time to work through the impact and any changes that may be required to ensure production of a balanced and robust budget.
In summing up, Councillor Muhammed Butt highlighted the concerns expressed ... view the full minutes text for item 10