Issue - meetings

Financial Year 2020/21 - Q2 Budget Monitoring

Meeting: 03/11/2020 - Cabinet (Item 129)

129 Financial Year 2020/21: Q2 Budget Monitoring

Report of the Chief Executive


Supporting documents:


Cllr Pauline Church, Cabinet Member for Finance, Procurement and Commercial Investment presented the report which (i) advised on the Budget Monitoring position 2020/21 Quarter 2 (30 September 2020) for revenue and capital for the financial year 2020/21 with suggested actions as appropriate; (ii) provided an update on the financial impact on the Council of responding to the COVID-19 pandemic and details on Government support; and (iii) provided an update on the Treasury Management performance for the year to date (30 September 2020).


Questions were received from Ian James about general reserves, Chippenham HIF finances and Stone Circle finances.


Cllr Whitehead acknowledged that the questions had received written responses which had been published on the Council’s website prior to the meeting. The were no requests for supplementary questions.


Cllr Church commented on the following matters:

·       The estimated financial impact to the Council of responding to the COVID-19 pandemic and the anticipated impact for the remainder of the 2020/21 financial year.

·       The Councils latest submission to the Government that sets out the forecast impact on the Councils finances.

·       Quarter 2 budget monitoring forecasts based on information as at 30 September 2020.

·       The receipt of £32m emergency funding from the Government.

·       The quarter 2 position forecasting an overspend of £20.467m, an improvement of £5.177m on the period 5 forecast overspend of £25.644m.

·       The forecast being reduced to an overspend of £0.467m as at quarter 2.

·       With improvements to the Councils financial position, rather than defer the collection fund deficit over three years, sufficient provision is put into the current financial year to deal with any losses now rather burden future financial years.

·       The underspends arising from the unallocated pay award budget and the tranche 4 emergency funding received from Government is transferred to a new earmarked reserve with the purpose of utilising the funds to equalise the budget in 2021/22.

·       Confirmation of the current forecast movement of approvals between years as schemes have been assessed and the spend profile recast.

·       An interim Treasury Management update based on information as at 30 September 2020.


Cllr Whitehead thanked officers for the incredibly long hours worked and resilience shown during the Covid-19 period. 


Cllr Graham Wright, Chair of the Wiltshire Covid-19 Response Task Group, explained that the Task Group at their meeting held on 28 October 2020 and the Financial Planning Task Group, at their meeting held on 27 October 2020, received updates on the Council’s financial position. Detailed discussions were held, with many questions raised and the Task Group’s were satisfied with the responses received.  


In response to questions from Cllr Ian Thorn about underspends in the budget for Learning Disabilities and Mental Health and overspends in the budget for Access & Reablement, Cllr Church and officers reported that challenges in staff recruitment and over recovery of income in relation to Section 117 funding had a positive impact on the budget for this service area.  In relation to Access and Reablement, it was noted that budget targets had been amended and the service area had been  ...  view the full minutes text for item 129