Issue - meetings

To consider the report of the Cabinet Member for Performance and Resources seeking Members to note year-end forecasts, and the financial pressures on the Council during the 3^rd Quarter ended 31^st September 2022.

RESOLVED it is noted that:

                    (1)         the forecast year-end position for the financial year is currently a decrease to the General Fund balance of £109k against a budgeted increase of £129k

                    (2)         the details of specific budgetary issues identified by officers and the actions being taken to address those issues

                    (3)         the current level of Capital expenditure is as shown in Appendix 2 of the report

                    (4)         the financial implications of Covid-19 and the level of economic recovery from the effects of the pandemic will continue to be monitored and reported alongside any grant funding provided to mitigate the spend or lost income

                    (5)         the estimated nature of some of the figures included in the report because of the cyber incident in December 2021.

Cabinet considered the report of the Cabinet Member for Performance and Resources that sought Members to note year-end forecasts and the financial pressures on the Council during the 3^rd Quarter ended 31^st September 2021.

The Cabinet Member for Performance and Resources summarised the report.  She drew Members’ attention to the forecasted £109k decrease in the General Fund against the previously budgeted increase and advised that this was due to the recent cyber incident as well as the ongoing impact of COVID-19.  The Cabinet Member for Performance and Resources noted the position within her own portfolio including the mitigation by £237k of the Housing Subsidy cost which is otherwise outside of the Council’s control, and greater income from the Cemeteries and Crematorium Service.

The Cabinet Member for Culture and Leisure expressed optimism for the future considering the imminent opening of a revitalised Kings Square and growing footfall in the Gloucester Guildhall.  The Cabinet Member for Planning and Housing Strategy anticipated more income in her portfolio as some large development schemes are progressed having been delayed by COVID-19.  The Cabinet Member for Environment contrasted the £100k income generated from recyclates with a £350k deficit of five years ago and attributed this success to efficiencies by officers and contractors as well as greater engagement from residents.

RESOLVED it is noted that:

                    (1)         the forecast year-end position for the financial year is currently a decrease to the General Fund balance of £109k against a budgeted increase of £129k

                    (2)         the details of specific budgetary issues identified by officers and the actions being taken to address those issues

                    (3)         the current level of Capital expenditure is as shown in Appendix 2 of the report

                    (4)         the financial implications of Covid-19 and the level of economic recovery from the effects of the pandemic will continue to be monitored and reported alongside any grant funding provided to mitigate the spend or lost income

                    (5)         the estimated nature of some of the figures included in the report because of the cyber incident in December 2021.

To consider the report of the Cabinet Member for Performance and Resources updating Members on financial monitoring information for the third quarter of 2021/22.

109.1  The Cabinet Member for Performance and Resources introduced the report and confirmed that the purpose was to present the current best estimate of the Council’s financial position against the agreed budgets for the 2021/22 financial year. She confirmed that the forecast year-end position was a decrease to the General Fund balance of £109k against a budgeted increase of £129k, and that the year-end forecast position had therefore switched from a net increase of £180k to the General Fund forecast at Quarter 2 to a net decrease of £109k.

109.2  The Cabinet Member for Performance and Resources noted that as per the narrative in section 3 of the report, there was continued uncertainty surrounding the recovery of income streams as a result of the financial implications of Covid-19 and the cyber incident which had impacted the Council since December 2021. She confirmed that the Planning and Performance and Resources portfolio areas were experiencing pressures.

109.3  With regards to parking income, the Cabinet Member for Performance and Resources confirmed that the year-end forecast outcome had decreased by £25k as visitors to the city over the festive period had reduced due to the Covid-19 Omicron variant.  She confirmed that the smallest percentage change could have an impact on benefit payments and Housing Subsidies, however she noted that the cost of providing such payments was out of the Council’s control and mitigated by some extent by benefit overpayments that had reduced the net service spend by £237k. The Cabinet Member for Performance and Resources further confirmed that there were pressures in the Commercial Property and Crematorium service, however with the easing of restrictions, the opportunity to hold additional wakes was offsetting some of this pressure.

109.4  The Chair referred to the narrative at 3.5 in the report regarding the Sales, Fees and Charges (SFC) compensation scheme and asked for clarification on the statement that the settlement of the £400k accrued for Quarter 1 was still outstanding. The Director of Policy and Resources confirmed that the Sales Fees and Charges settlement had been agreed by central Government and that he expected that the Council would receive the money by the end of the financial year.

109.5  In response to a request from the Chair for clarification on what was meant by the SWRDA acronym at 5.2, the Director of Policy and Resources clarified that it referred to the ‘South West Regional Development Agency.’ The Director of Policy and Resources further explained that at the end of the financial year, this money was placed into the Council’s financial reserve and reviewed at year-end to check against the net balance. The Chair asked whether additional narrative on this area could be provided in future reports and the Director of Policy and Resources confirmed that he would be happy to provide a further paragraph explaining the SWDRA position going forward.

109.6  Councillor Wilson referred to the narrative at 4.2 concerning the December cyber incident and commented that the incident had resulted in a swing of  ...  view the full minutes text for item 109