Cabinet considered the latest financial update report.

The Lead Member for Finance and Ascot informed Cabinet that the headlines were an adverse movement of £591K from the November position, however, the outturn had improved with a projected positive variance of £3.74Million. This position had been helped by an increase in COVID-19 funding of £2.243 million. As appendix A showed the Council’s COVID-19 costs of £15.4 million were forecast to be fully mitigated by Government funding.

The Lead Member informed that this meant that the projected outturn represents the financial position of the Council with COVID-19 stripped out. The forecast of £3.74M positive variance was quite remarkable and officers across the Council deserve our thanks.  £2.374 of the variance is attributable to delivering services below budgeted costs and £1.4M to none service budgets.

It was proposed to transfer £3 million to a COVID-19 general reserve which would be used to support the 2021/22 budget and mitigate some of the £9.2 million projected COVID-19 costs and a further £300K will be moved into an Optalis Development reserve to cover additional overhead costs to be incurred next year. These movements reduce the general reserve to £6.75million which remains above the minimum level of £6.37Million

Some think that government funding had bailed us out and created the increase in reserves. Anyone who thought this was under a misapprehension as they fail to consider for one the opportunity cost of £2.3 million transformational savings COVID had prevented us from making.

The Lead Member provided the following highlights; given the latest advice from Government on travel, parking income was predicted to be lower by £241K but we should, through the sales, fees and charges scheme be able to recover 71% of any loss.

Industrial and commercial estates had taken a prudent approach and negotiated payment plans and other arrangements with tenants to secure longer term recovery and minimise expensive voids. The projected outturn has improved by £394k

Children’s Services were projection an increased overspend of over £418K

Council Tax and business rates provide £88M of our income, pleasingly collection rates are holding up remarkable well.

He also drew Cabinets attention to appendix I which detailed the COVID-19 funding we have received from Government currently a totalling £94M. This was dedicated to supporting the impact of COVID-19 on Council services and a range of business support schemes that were administered by revenues and benefits. This continued to place significant pressure on the team who were doing a great job.

Mr Hill addressed Cabinet and welcomed the level of detail within the report.   He asked if the funding from the Homeless Support Grant was still available, he questioned the reference to the Sainsbury’s Rotunda and the £72,000 parking pressure.  He also asked about the reference to the new polling station program for the May 2021 elections and the hiring of tablets as he would have thought this required a separate Cabinet paper.

The Lead Member replied that the tablets were to be used in polling stations for the registration and allocation of ballot papers.  This helped remove an element of contact during the pandemic.   With regards to Sainsbury’s this related to historical maintenance issues.  With regards to the homeless grant officers confirmed that this was still received but was now called the Flexible Homeless Support Grant for 2021.

The Lead Member for Transport and Infrastructure reiterated the great turnaround in finances during the pandemic.   He thanked his fellow Cabinet Members, officers and the work done by Cipfa.  We were providing sound financial management with great service delivery.

The Lead Member for Climate Change, Sustainability, Parks and Countryside said Cabinet had followed sound principles supported by excellent work by officers.  However she pointed out that there was no dedicated line for climate change.  Although there was a surplus we had to be mindful of pressures for next years budget. 

Cllr Jones said that in September we were told that the net effect of Covid was about £1,2 million.  We have received a one off grant so could we be informed of what the estimated year end position is.   She also mentioned that during the pandemic there were savings of about £2 million for areas such as home care placements.   So we can not put Covid behind use as there was a commitment from Government for funding.  Next year she expected things to be harder.   She also said that there had been a great improvement in the monitoring reports. 

Cllr Larcombe mentioned that the report showed that borrowing was increasing by £76 million.  He was informed that the budget report showed the cash flow forecast and certain long term expenditure that the authority was committed to that will drive borrowing up due to capital projects.

Cllr Tisi said that she had looked at the transformation savings in adult social care and it said £120,000 to deliver assistive technology solutions reducing the need for care home visits.  The pandemic had caused delays in delivering these plans however in appendix B it says that implemented technology enabled care across the service have been expedited due to Covid and will be delivered in full.  So has the pandemic slowed down or sped up delivery of the savings.  The Managing Director informed that the savings would have been delivered in year but it may be that the wording using expedite may not be as clear as it should.  The savings had been delayed but they were still expected to be delivered.   The original planned schedule was off track but other things had been implemented above the original plan.

Cllr Baldwin mentioned that  he was surprised to hear the Lead Member mention that there was good news coming out of the pandemic or if he meant other members were suggesting this.  With regards to the report he referred to pages 164 and 165 regarding parking income.   Windsor parking was skewed due to tourism and thus the ups and downs were due to lockdown. He wanted to know if the slow recoveries was down to retail opportunities or the removal of resident parking.

The Lead Member responded that he had mentioned the impact of the pandemic on our finances and that we had been supported by the Government.  He was deeply upset by the impact the pandemic has had on residents with the deaths being a great tragedy.   

The Lead Member for Public Protection and Parking said that he could not see the correlation in the data about the removal of the Advantage Card discount and what took place in this years budget as mentioned by Cllr Baldwin. 

Resolved unanimously:  that Cabinet notes the report and:

i)     Notes the Council’s projected revenue & capital position for 2020/21;

ii)    Notes the budget movements;

iii)   Agrees the capital variances and notes the slippage which will be recommended to Council for formal approval.