Issue - meetings

This report sets out the current forecast of income and expenditure versus the revenue budget for 2021/22 and other key financial information.

Cabinet RESOLVED

(1)     To note the overall financial position within the Q3 Financial Update and actions being taken to manage the issues arising, as detailed within the report.

(2)     To note the budget setting strategy for 2022/23 as detailed within the report.

Councillor McLennan (Deputy Leader, Lead Member for Resources and Interim Lead for Children’s Safeguarding, Early Help and Social Care) introduced a report which detailed the current (Quarter 3) 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 £6.9m.  Of this £5.4m related to pressure on the Dedicated Schools Grant (DSG) which would need to be recovered in future years and £1.5m as a result of pressure on Children and Young People due to an increase in the number of unaccompanied Asylum Seeking children.  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 an estimate of the additional costs and loss of income arising as a result, which was currently forecast as £25.1m.  It was, however, currently anticipated that the pressures identified could be contained within the growth provided to service areas along with specific government grants received in-year.

Members noted the updates provided in relation to the forecast for each service and budget area along with the identified risks and uncertainties, with attention 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 (£10.4m) 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.

As a final update, Cabinet also noted the update provided in relation to the impact of the provisional Local Government Finance Settlement announced in December 2021, which had been in line with the expectations set within the autumn budget and Spending Review.  As a result, members were advised there had been no change required to the draft budget proposals agreed by Cabinet in December 2021.

In summing up, Councillor Muhammed Butt highlighted the Council’s commitment, despite the ongoing challenges identified, to continue delivering against its core aims and priorities whilst robustly managing the Council’s finances.

As a result, Cabinet RESOLVED:

(1)     To note the overall financial position within the Q3 Financial Update and actions being taken to manage the issues arising, as detailed within the report.

(2)     To note the budget setting strategy for 2022/23 as detailed within the report.