Agenda item

(a)  That the reported underlying financial position of the Council for the year end 2020-21 be noted;

(b)  That the Council’s provisional reserve balances for the year end 2020-21 be noted;

(c)  That budget transfer (virements) for 2020-21 as requested in Section 9 of the report be approved.

(d)  That write offs for the first quarter of 2020-21 as requested in Section 10 of the report be approved.

The Interim Service Lead, Finance introduced a report that provided Cabinet with an update on the financial position of the Council’s revenue account for the third quarter (October to December) of financial year 2020-21.

The report set out the significant impacts the Covid-19 pandemic had had on the Council’s revenue position in terms of additional service pressures, costs, deliverability of planned savings and reduced income.  The approved net budget for the year was £124.4m and as at quarter 3 the year-end position for all the Council run services was forecasting to be a £2.8m underspend.  This took into account and applied the various Covid-19 grants of £20.5m.  Before applying the grant, the total overspend would be £17.6m.  The £2.8m underspend would be moved into reserves to take them to £12.2m and help the Council manage the Covid-19 related revenue pressures in future years.

The Cabinet discussed various aspects of the report and supported Officers in seeking to work with directorates to mitigate service overspends and address budget pressures as this would put the Council in a better position to manage the financial challenges in 2021/22.  In terms of savings it was reported that 48% of planned savings were expected to be achieved.  Alternative savings were being explored wherever possible but this was recognised to be difficult during the period of the Covid-19 response.  The current position on the Slough Children’s Services Trust finances was raised and Officers updated on the status of discussions with the Department for Education.

The Cabinet considered and approved the write off requests as at section 10 of the report.

Speaking under Rule 30, Councillor Strutton asked about the position on reserves, use of the Winter Grant Scheme and highlighted that the total Government funding the Council had received related to Covid-19 was approximately £50m.  Officers responded to the various issues raised and it was noted that majority of £50m Covid-19 funds referred to had been paid in grants to eligible local businesses rather than be available to support Council services.  There was also significant uncertainty about future Government funding for local authorities Covid-19 response despite the fact that the increased demand for services, cost pressures and lost income would continue into the future.  At the conclusion of the discussion the revenue budget update was noted.

Resolved –

(a)  That the reported underlying financial position of the Council for the year end 2020-21 be noted;

(b)  That the Council’s provisional reserve balances for the year end 2020-21 be noted;

(c)  That budget transfer (virements) for 2020-21 as requested in Section 9 of the report be approved.

(d)  That write offs for the first quarter of 2020-21 as requested in Section 10 of the report be approved.