Issue - meetings

Meeting: 10/11/2020 - Cabinet (Item 7)

7 Q2 Budget Monitoring Report 2020-21 pdf icon PDF 745 KB

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The report sets out the overview of the financial Revenue and Capital outturn position for Buckinghamshire Council for the financial year 2020/21 as at quarter 2.




Cabinet noted the current forecast outturn for the financial year 2020/21 and the latest estimates of impacts and funding related to Covid-19.


Cllr Katrina Wood, Deputy Leader and Cabinet Member for Resources, introduced the report which set out the overview of the financial Revenue and Capital outturn position for Buckinghamshire Council for the financial year 2020/21 as at quarter 2.  The report took into account the pressures relating to Covid-19 and also the business as usual activity. Overall there was a forecast revenue overspend of £4.9 million, which was down from £5.97 million at quarter 1. This £4.9million was made up of unfunded Covid-19 pressures of £2.2 million and other pressures of £2.7 million. The Covid-19 pressure took into account the forecast additional costs and lost income of £41.8 million offset by expected un-ringfenced government funding of £39.6million. This includes as estimate of £10.5 million in relation to the Sales, Fees and Charges lost income compensation scheme.  So far the Council had claimed £5.3 million for the first 4 months on the financial year (April to July).  These figures did not take into account the recent government announcement of an additional £1 billion for local authorities, which allocated the Council a further estimated £3.5 million government grant relating to the impact of Covid. This has had a positive impact on this outturn position but would not show until the next quarter.  Cllr Wood explained that whilst this funding was welcomed, it was less than the Council was expecting based on previous allocations and furthermore it did not take into account the implications of the current lockdown which was likely to have a significant impact on the Council’s income levels like parking and would have a negative impact on the next outturn position.


In terms of the other revenue pressures in business as usual; the main pressures were within Children Services and relate to home to school transport costs and reduced income of £3.9 million and also the looked after children placement costs of £1.2 million.  These pressures were partly offset from within corporate contingencies where some budget was approved to cover the key financial risks facing the authority.  All directorates were now looking at mitigating actions to bring their service areas back into balance and appendix 1 set out the details of the variances by each directorate. The Council was also reviewing the remaining corporate contingencies and ear marked reserves to ensure a break even position by the end of the financial year.


The capital programme forecast outturn position reflected an underspend/slippage of £15.7m and was summarised in Table 2 of the report. It was noted that slippage might  increase further if Covid-19 restrictions continue to impact on delivery of the capital programme. Cabinet were advised that there was an ongoing review of the Capital Programme to ensure that the programme was realistic in terms of the profile.


Cllr Martin Tett stressed the uncertainties that the Council was facing. The Council had received only a further £3.5 million of government grant, when it had been expecting £7 million based on previous allocations. The Council’s fee income was down and leisure  ...  view the full minutes text for item 7