Issue - meetings

Report of Councillor P Parkin, Portfolio Holder for Finance

Key Decision

RESOLVED

(1)  That Cabinet approved the use of the Resilience Reserve to fund the approved growth for the waste recycling service, as specified in the report.

(2)  Cabinet approved that any subsequent under-spend on the General Fund in respect of 2021/22 be transferred to the Resilience Reserve to “pay-back” the contribution made during the current financial year and increase financial resilience for future years.

(3)  Cabinet recommend to Council that:

(a)  The budget in respect of the General Fund as set out in Appendix 1 of the report be approved as the Current Budget for 2021/22

(b)  The budget in respect of the Housing Revenue Account (HRA) as set out in Appendix 3 of the report be approved as the Current Budget for 2021/22

(c)  The Capital Programme as set out in Appendix 4of the report be approved as the Current Budget for 2021/22.

REASONS FOR DECISION

To enable revised budgets to be prepared as early as possible within the financial year, in order to provide sufficient time to allow any planned changes to be delivered. The Council has faced financial challenges this year putting pressure on the ability to set a balanced General Fund budget. Careful budget management, use of reserves ring fenced for providing resilience when needed, and the ongoing progression of the Transformation Agenda has mitigated this.

OTHER OPTIONS CONSIDERED AND REJECTED

No alternative options were considered. Decisions on how resources are used will be taken by Members as part of the 2022/23 Medium Term Financial Planning process.

This is a Key Decision.  The call-in period for the decision will run until Monday 6 December 2021

The report to Cabinet recommended that Council be asked to approve revised budgets for the General Fund, Housing Revenue Account and the Capital Programme, for the remainder of the 2021-22 financial year. In particular, it set out specific proposals for funding the budget growth required for the Waste Recycling Service.

Members were reminded that earlier in the year Council had approved an increase in expenditure to meet the cost of bringing ‘in-house’ the Waste Recycling Service. This action had been required in order to maintain the service, following the insolvency of the previous provider. The report proposed that this increased expenditure be met from the Council’s ‘Resilience Reserve’ fund. It also proposed that the Resilience Reserve fund be then replenished, or paid-back, from savings to be made during the remainder of the year. Future years funding of the service, it was explained, would be considered as part of the Council’s budget setting process.

Cabinet discussed the report. Members reflected on the financial challenges facing the Council and the savings that would need to be made in order to address the underlying forecast budget deficits during the remaining years of the Council’s Medium Term Financial Plan (MTFP).

RESOLVED

(1)             That Cabinet approved the use of the Resilience Reserve to fund the approved growth for the waste recycling service, as specified in the report.

(2)             Cabinet approved that any subsequent under-spend on the General Fund in respect of 2021/22 be transferred to the Resilience Reserve to “pay-back” the contribution made during the current financial year and increase financial resilience for future years.

(3)             Cabinet recommend to Council that:

(a)       The budget in respect of the General Fund as set out in Appendix 1 of the report be approved as the Current Budget for 2021/22

(b)       The budget in respect of the Housing Revenue Account (HRA) as set out in Appendix 3 of the report be approved as the Current Budget for 2021/22

(c)       The Capital Programme as set out in Appendix 4of the report be approved as the Current Budget for 2021/22.

REASONS FOR DECISION - To enable revised budgets to be prepared as early as possible within the financial year, in order to provide sufficient time to allow any planned changes to be delivered. The Council has faced financial challenges this year putting pressure on the ability to set a balanced General Fund budget. Careful budget management, use of reserves ring fenced for providing resilience when needed, and the ongoing progression of the Transformation Agenda has mitigated this.

OTHER OPTIONS CONSIDERED AND REJECTED - No alternative options were considered. Decisions on how resources are used will be taken by Members as part of the 2022/23 Medium Term Financial Planning process.