Agenda item

The Deputy Director of Finance submits the Revenue Monitoring Report, the first in the monitoring cycle for 2021/22.

7.42pm meeting resumed.

The Deputy Director of Finance submitted the Revenue Monitoring Report, the first in the monitoring cycle for 2021/22.

The Deputy Director of Finance introduced the report, explaining that predictions at this stage of the financial year were always difficult especially with ongoing uncertainties around the pandemic and moving into winter.

Key points noted:

·         The financial picture continued to be dominated by the Covid pandemic.

·         Overspend was forecast at £7m, this was not unexpected and could be accommodated from one off sums made available for that purpose.

·         Main income streams were being monitored closely to see how they recovered and to identify any potential long term future impacts.

·         Despite the pandemic Adults and Children’s services were forecasting to remain within their budgets, although Children’s may have to call upon their reserves to a point to address the pressures set out in the report.

·         City Developments and Neighbourhoods and Sports Services were forecasting overspends, this was mainly due to loss of income as a result of closure because of Covid.

Members were asked to note the emerging picture and approve the transfer of £3.3m of funding received from government to offset short falls in local taxation collection and additional business rates relief due to the pandemic, to an earmarked reserve.

The Chair invited Members to discuss the report.

The Deputy Director of Finance clarified that an earmarked reserve was an assigned or tagged pot that was kept aside for specific use. The funds had been reserved and as a reserve there would not be a specific time when that funding had to be used.

Reference was made to a forecast underspend on repairs and housing maintenance and the situation regarding empty properties/voids was queried and whether there were high levels of voids because they were awaiting repairs.

There was brief discussion on current Council Tax costs and queried whether there would continue to be an Adult Social Care precept on Council Tax if that service was anticipating an underspend.

The City Mayor responded that the government had allowed councils to transfer the burden of growing Adult Social Care costs to local taxation and latest reforms did very little to address this situation. It was the case that what the council had been allowed to do as a result of increase in the precept still fell short of the huge increase of Adult Social Care costs year on year.

Responding to the comments made on voids, it was noted that the Leicester Mercury on this occasion had published a confused story on the issue and they were talking about voids across the whole of the housing market not just council estate. However, Housing Scrutiny did regularly discuss voids across the council estate and there were not a significantly high number of vacant properties although the council did have an exceptionally high housing waiting list.

The Deputy Director of Finance replied that he did not have the exact number of vacant HRA properties, however generally the council had been buying properties to offset some right to buy losses. In terms of the underspend on repairs, certain materials and labour was in short supply so the service area has experienced some difficulties. The Deputy Director of Finance agreed to provide more details to Councillor Porter outside this meeting.

Members noted that recent reports to Housing Scrutiny had also reflected the downward trend in terms of the number of void properties.

Returning to the comments made in relation to council tax it was noted that the ASC precept had raised about £3.6m and the ASC budget was raised by about £10m. Thus only £3.6m was funded through precept therefore although there was an underspend overall against the increased budget, the council still had to fund the extra costs. Announcements from the government last week suggested that next financial year there would be another Adult Social Care precept but at moment that was not clear.

The Chair referred to the rising costs related to Looked after Children and suggested this might be something for the Children Young People and Education scrutiny commission to explore further. Councillor Gee, Chair of Children, Young People and Education confirmed that could be taken up and included on future work programme of that commission.

AGREED:

1.    That the emerging picture detailed in the report be noted.

2.    That the Executive be recommended to approve the transfer of £3.3m of funding received to an earmarked reserve to offset shortfalls in local taxation collection and additional business rates relief due to the pandemic.

3.    That the Deputy Director of Finance provide additional information on void properties and housing repairs to Councillor Porter.

4.    That the Children Young People and Education Scrutiny Committee consider exploring the rising costs related to Looked after Children at a future meeting of that commission.