Agenda item

The Committee scrutinised the Council’s overall performance and financial position for the period ended 31 March (“Fourth Quarter 2021/22”).  Detailed analysis was provided in the appendices to the report and the overall position was summarised in paragraph 3.3 of the report. 

The Executive Councillor outlined several areas of underspend and overspend, and set out the latest position in relation to Business Rates as out in paragraph 2.8 of appendix A.  In response to a query, the Head of Finance provided an explanation around the business rates collection fund deficit.

As set out in paragraph 2.11 of Appendix A, a review of the Authority’s reserves had been performed to identify areas where earmarking for future projects was considered prudent while maintaining a satisfactory level for contingency.  This included the moving of £3,000,000 to create a new Levelling-Up Fund (LUF) reserve to provide funds to enable the Council to meet potential commitments arising should the LUF grant be awarded, which would reduce the level of reserves to just above the minimum contingency level.  The bid to the Levelling Up Fund is to provide new leisure facilities in Glossop.  Once the new facilities are completed, the existing leisure centre facilities would be sold, and the reserves replenished.  Additionally, a bid for additional funding will be made to Sport England. These approaches provide opportunities to ensure that the use of reserves can be mitigated.

The provision of new leisure facilities in Glossop was welcomed, although some concerns were expressed regarding the future use of the existing pool and it was suggested that this be considered further by the Leisure Facilities Working Group.

In response to a query around the inflationary effect on capital costs, members were assured that, following advice from experts in leisure and capital developments, inflation had been incorporated into the build costs.  Regarding risks should the reserves fall below the minimum contingency level, a separate contingency fund has been established for extreme inflationary pressures outside of the general fund reserve, and reports would be submitted to members on its use if necessary. It was explained that the project is project to complete in c.5 years (to 2026/27) with reserves applied in the 2024/25 financial year, limiting the period of potential exposure. The general principle is that LUF grant will be taken first before utilising reserves.  The view was expressed that, due to changes in the rate of inflation and interest rates, the basis of the original budgeting assessment at the start of the year that influenced the appropriate amount of reserves to be held had changed, and it was requested that a report setting out key financial risks for the LUF project, together with an analysis of the asset values be submitted to the next meeting of the committee.  Due to the timing of the submission of the Levelling Up Fund Bid, it was agreed that this matter would be further discussed during part 2 of this meeting.

Regarding Procurement (Appendix B), members were advised that work was on-going with the LEP and others to engage more local suppliers.

Regarding Performance (Appendix C), reference was made to two Stage 2 complaints around planning and members were advised that one of the issues related to nutrient neutrality, and that the latest government guidance would be communicated to members.

Members complimented the work of the Customer Service Team within the Gamesley Office for their recent work with members of the public around the processing of grants and bus pass renewals.

RESOLVED:

1.     That the Fourth quarter 2021/22 financial, procurement and performance position detailed in Appendices A, B and C and summarised at 3.3 of the covering report be noted.

2.     That the Executive be recommended to approve the allocation of the surplus on the General Fund Revenue Account to reserves as explained in Appendix A (paragraph 2.11)

3.     That the Executive be recommended to approve the proposal to vary forward unspent revenue budget as described in Appendix A (Paragraph 2.14) and

4.     That the Executive be recommended to approve the proposals to carry forward unspent capital budget as set out in Appendix A (Paragraph 6.5 and 7.5

(Note:  the vote on resolution 2 above was taken after further discussion during part 2 of the meeting)