Agenda item

The Cabinet considered a report of the Corporate Director of Resources which provided information on the:

(a)          updated forecast revenue and capital outturn for 2020/21;

(b)          updated forecast for the council tax and business rates collection fund position at 31 March 2021;

(c)          updated forecast use of earmarked, cash limit and general reserves and estimated balances to be held at 31 March 2021.

The report also sought approval of the budget adjustments and proposed sums outside of the cash limit and provided an update on progress towards achieving MTFP(10) savings (for copy see file of minutes).

The Corporate Director of Resources stated the report was based on best estimates and commented on the high level of uncertainty due to the COVID-19 pandemic, therefore, the report included a number of assumptions with regard to income and expenditure.

The Chair welcomed Councillor Shuttleworth, local member for Weardale, who requested a breakdown, and, a reason, for the £420,000 overspend on winter maintenance.  Councillor Stephens, Portfolio Holder for Neighbourhoods and Local Partnerships, explained the provision of winter maintenance is a statutory obligation. The cost of the service is driven by the weather and is delivered in accordance with the winter maintenance policy. The forecast overspend of £420,000 is based on a projection which assumes a similar level of activity to that of 2019/20. This is subject to weather conditions throughout the forthcoming winter season and will be revised accordingly as the year progresses.

Moving the report, Councillor Napier referred to the uncertain times for financial planning and forecasting and he commended officers for their work.  The Chair referred to the overspend in excess of £50 million due to additional expenditure and loss of income during COVID-19.  Whilst additional government funding had made-up most of the shortfall, there remains an overspend this year. 

He confirmed the financial position will continue to be closely monitored during this challenging time.  

Resolved:

That the recommendations in the report be approved.