Report of the Corporate Director (Resources, Environment and Cultural Services) on the forecast revenue outturn position as at Quarter 1 for the financial year 2020/21 and outlines the main variances from the original budget for both General Fund and Housing Revenue Account.

(1)     The revenue forecast outturn position as at Quarter 1 was noted.

(2)     The virements, detailed in section 3.2 were approved.

(3)     The position on debts set out in sections 5 of the report were noted.

Report of the Corporate Director (Resources, Environment and Cultural Services) on the forecast revenue outturn position as at Quarter 1 for the financial year 2020/21 and outlines the main variances from the original budget for both General Fund and Housing Revenue Account.

(1)       The Decision Taken

RESOLVED:

(1)     The revenue forecast outturn position as at Quarter 1 was noted.

(2)     The virements, detailed in section 3.2 were approved.

(3)     The position on debts set out in sections 5 of the report were noted.

(2)       Reasons for the Decision

At the end of Quarter 1, there was an adverse variance on the General Fund net cost of services of £3.9M.

Most of this, or £2.8M, is related to the impact of Covid.  This has been partly offset by government funding of Covid losses of £1.5M.  This leaves a net Covid impact for 2020/21 of £1.3M.

The remaining £1.1M variance on the net cost of services is almost entirely due to the delayed one-off pension payment of £1.2M.  This has been absorbed by a release from the earmarked reserve previously established for this purpose, so has no net impact upon the General Fund balance.

There are no substantial variances in the HRA, as rent collection is currently holding up.   The overall adverse variances noted in Section 4.1 have been absorbed by adjusting the Revenue Contribution to Capital.   The recent announcement that Right to Buy receipts can be held onto for longer has relieved some of the previously estimated Covid related pressure on the HRA.  The revised estimation of £350,000 is a capital, rather than a revenue risk, and is explained in the Capital Outturn report.

Debtors, particularly for our commercial estate, have, as expected, risen considerably in the quarter.  Much of this is the result of deferred payment plans being established with commercial tenants.

As mentioned in the previous agenda item, considerable Covid related uncertainties remain, and the 2021/22 budget will be challenging.  But the Council can be proud that past financial prudence means we have so far been in a position to absorb the shock without having to cut front line budgets.

(Note: *This item is part of Quarter 1 Revenue Monitoring 2020/21 (Forward Plan Reference FP988)).