Agenda item

RESOLVED:  1)        That the amended draft revenue outturn position for 2021/2022 (section 2 of the report) be approved

2) That the amendments to the Earmarked Reserves Policy (Section 4 of the report) be approved.

Reason for Decision

To approve the amended draft revenue outturn position for 2021/2022 for the Council as per the amended report published. 

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The Cabinet member for Finance presented the amended report drawing attention to positive positon of net underspending permitting a higher contribution to General Fund and Earmarked reserves.  She commented that it should stand the Council in good stead for a challenging year to come.

The Assistant Director -  Resources presented the detail of the report which set out in summary the revenue outturn for 2021/2022 for the Council. The report showed details of the major differences between actual costs/income compared to the revised estimates for 2021/2022 reported in February 2022 monitoring.

The accounts showed the Borough’s spend of £20,578,724, which was £70,294 more than the revised position following February’s monitoring for 2021/2022.

Throughout the year there was significant uncertainty and variation to budget as reported in the budget monitoring report, largely as a result of the financial impact of recovery from the pandemic on the local economy and related variation to demands on service. In addition to this, during the year concerns emerged of growing inflation and the Government’s Office for Budget Responsibility made forecasts of inflation up to 10% for 2022/23, widely impacting the cost of living for individuals and businesses.

The Council’s continuing strategy was to identify budget savings in year, as part of the monitoring process and at year end. Any savings were then transferred to the General Fund Reserve balance for use in future years. As a result consideration had been given to allocating specific funds to support the community and provide contingency for known and estimated inflationary increases to the Council. Appendix 2 to the report showed more detail.

The Outturn included additional transfers of £2,808,850 to earmarked reserves for continued operations in 2022/2023. The General Fund Reserve was increased to £8,983,760 at the start of 2022/2023 following the contribution from 2021/2022 surplus of £287,745.

Under standing order 34 Councillor de Whalley expressed concern for the Town Fund timeframe.

Under standing order 34 Councillor Morley asked whether there was any update on the Government’s position on Business Rates. He considered the Council had a reasonable record on Revenue budgets but was disappointed that he considered tourism budgets were underspent along with open spaces.

Under standing order 34 Councillor Joyce reminded members that the outturn report told members where it was at a point in time.   He reminded members that people came to the Council for help in hard times coming, and questions whether the general fund could be used to assist with this.  He considered the Council’s finances were in good order.

Councillor Long concurred with Councillor Joyce regarding the point in time for the budgets.  He reminded members that in 2021/22 money was transferred to earmarked reserves in credit to the prudent decisions taken during the unprecedented times with the pandemic, and those levels of reserves should help with the additional demand on services.  He congratulated the Assistant Director and her team on the production of the report.

Councillor Dickinson responded to the question on the level of the General Fund showing that the General Fund wouldn’t be sufficient to meet needs over the coming years, and there may be an accelerated need to use the Fund for inflationary increases.  She drew attention to some of the earmarked reserves which were intended to assist vulnerable and those in need, and the amounts set aside for green issues.  She considered the position at the current time was favourable, but the Government funding decision was awaited.

Councillor Middleton drew attention to the awaited Government settlement which was likely to be only for a 2 year period.  He thanked Officers and the Portfolio Holder Councillor Dickinson for the work carried out.

RESOLVED:  1)        That the amended draft revenue outturn position for 2021/2022 (section 2 of the report) be approved

2) That the amendments to the Earmarked Reserves Policy (Section 4 of the report) be approved.

Reason for Decision

To approve the amended draft revenue outturn position for 2021/2022 for the Council as per the amended report published.