Decision details

The Leader of the Council delegated authority to the Cabinet to make the following decisions:

RESOLVED: To

1.    Note the net projected general fund financial overspend of £69.1m for the full year as at the end of Month 10, January 2021 which includes all projected COVID-19 related expenditure and income of £40.9m, a net increase of £4.4m from  Period 9, see section 5 of the report. 

2.    Note that a number of risks may materialise which would see the variance increase. These include dividends and interest receivable from Brick By Brick (both historic accrued and in-year expectations) of £20.5m, and pending external audit verification of assumptions around 2019/20 accounting treatment of MRP and Transformation funding that could impact by £6.0m. Should all these risks which total £26.6m materialise, which is unlikely, the impact on the current forecast overspend of £69.1m is an increased overspend to £95.7m, with draft general fund reserves of just £7.4m.

3.    Note, the above figures are predicated on forecasts from Month 10 to the year end and therefore could be subject to change. Forecasts are made based on the best available information at the time.

4.    Note that the Spending Control Panel which was set up at the beginning of November 2020 continues to meet on a daily basis.  Further details on the outputs of the SCP is provided within section 5 of the report.

5.    Note that ELT are to continue to take further immediate action to mitigate spend during the reminder of the financial year, and work with their departments to ensure forecast figures are thoroughly reviewed.