Members are asked to refer to the report included in the Cabinet agenda 24^th November, 2021.

This report presents the budget monitoring report 2021-22 as of 30^th September 2021 (period 6) for the General Fund, Dedicated Schools Budget (DSB), Housing Revenue Account (HRA) progress made against savings targets and the Council’s capital programme. It also provided projections on General Fund earmarked reserves and the forecast impacts of Covid on the Councils finances in 2021-22. A summary of the discussions and questions raised is set out below:

The Committee:

v  Noted that they were to have reviewed the MTFS refresh and Fees and Charges items this month, however these have now been delayed and subsequently moved to the January 2022 Budget meeting which adds further time constraints on the Committee to be able to effectively scrutinise the Budget process.

v  Was reminded that addressing the Budget process early has been an issue for the Committee throughout the years and noted the Chairs disappointment that it has now had to be moved to January 2022.  However, the Committees work programme has been revised to accommodate this change.

v  Observed that this is the half year budget monitoring report setting out how the Council is managing its Budget within the impact of Covid.

v  Noted that the overall position on the general Fund after the application of reserves is a forecast deficit on the year of £300,000, although there are some worrying variances and that position is supported by £19.6 million of extra funding. Whilst the Dedicated Schools Grant (DSG) is forecasting a small underspend on the year and the Housing Revenue Account ( HRA) an overspend of £1.4 million. The Directorate positions are that Housing is forecasting an overspend of £2.3 million; Children’s an overspend of £1.6 million; Resources and Governance a net overspend of £1 million and Place an underspend of 1.5 million.

v  Observed that regarding the reserves position is £20 million is the required minimum for the general fund and in addition £98 million in earmarked funds with restrictions, although a significant percentage of that is the collection fund smoothing reserve, which includes grants received in advance. We have another £75 million in earmarked funds, reducing to 70 million by year end. That sounds like a lot, but I remind you that expenditure is running at £19 million over budget, and in that context £70 million does not sound like such a significant cushion. The HRA position will see a call upon reserves of £1.4 million, leaving £50.9 million at year end. With regard to savings, the Budget was originally £28.9 million and this has been revised down to £20 million with £7.5 million forecasts to slip into future years and £1.4 million unachievable.

v  Noted that every year, but it becomes progressively more difficult to deliver savings and capital expenditure also foresees a certain amount of slippage into future years. However, despite some slippage, LBTH is  transforming the Borough through the capital programme the high streets and town centres, environmental projects, new Council homes, public realm improvements, Whitechapel is the gateway to the  ...  view the full minutes text for item 9