Agenda and minutes

To consider the report of the Cabinet Member for Finance and Income Generation detailing the revenue and capital financial monitoring for the period to the end of December 2020. 

DECISION MADE: (CAB 20/21 31166)

On consideration of the report of the Cabinet Member for Finance and Income Generation, Cabinet agreed the following:-

General Revenue Fund

i)  Note the forecast outturn position for business as usual activities is a £4.59M surplus after applying corporate funds, as outlined in paragraph 4 and in paragraph 1 of appendix 1. 

ii)  Note the performance of treasury management, and financial outlook in paragraphs 11 to 15 of appendix 1.

iii)  Note the Key Financial Risk Register as detailed in paragraph 18 of appendix 1.

iv)  Note the performance against the financial health indicators detailed in paragraphs 22 and 23 of appendix 1.

v)  Note the performance outlined in the Collection Fund Statement detailed in paragraphs 27 to 32 of appendix 1.

vi)  Notes the financial position arising from COVID-19, as outlined in paragraphs 4 to 9 of Appendix 1.

Housing Revenue Account

vii)  Note the forecast outturn position on business as usual activities is a  surplus of £0.18M as outlined in paragraph 5 and paragraphs 24 and 25 of appendix 1.

viii)  Notes the financial position arising from COVID-19, as outlined in paragraph 26 of Appendix 1.

Capital Programme

ix)  Notes the revised General Fund Capital Programme, which totals £661.70M as detailed in paragraph 1 of appendix 2.

x)  Notes the HRA Capital Programme is £212.17M as detailed in paragraph 1 of appendix 2.

xi)  Notes that the overall forecast position for 2020/21 at quarter 3 is £122.94M, resulting in a potential surplus of £58.30M, as detailed in paragraphs 4 and 5 of appendix 2.

xii)  Notes that the capital programme remains fully funded up to 2024/25 based on the latest forecast of available resources although the forecast can be subject to change; most notably regarding the value and timing of anticipated capital receipts and the use of prudent assumptions of future government grants to be received.

xiii)  Notes that £5.84M has been added to the programme with relevant approvals. These changes are detailed in annex 2.1 to appendix 2.

xiv)  Approves slippage and rephasing as detailed in paragraph 2 and 3 of appendix 2. Noting that the movement has zero net movement over the 5-year programme.

xv)  Notes changes to the capital programme arising from COVID-19 as detailed in paragraphs 6 and 7 of appendix 2.

Report of the Cabinet Member for Finance and Income Generation detailing the Revenue Budget 2021/22, Medium Term Financial Forecast 2021/22 to 2024/25 and Capital Programme 2020/21 to 2025/26.

DECISION MADE: (CAB 20/21 31164)

On consideration of the report of the Cabinet Member for Finance and Income Generation, Cabinet agreed the following:-

General Fund

i)  Notes the general budget consultation process that was followed as detailed in paragraphs 34 to 39.

  ii)  Notes that the budget consultation feedback has been taken into consideration by the Cabinet and has informed their final budget proposals. Further details are contained within the Members Room document 3.

  iii)  Notes the Equality and Safety Impact Assessment process that was followed as set out in paragraphs 40 to 43. The updated ESIA’s and Cumulative Impact Assessment are available documents in the Members Room, documents 1 and 2.

  iv)  Note the forecast outturn position for 2020/21 as set out in paragraphs 29 to 32 of Appendix 1.

  v)  Approves the revised Medium Term Financial Forecast (MTFF) for the period 2021/22 to 2024/25 attached as Annex 1.1.

  vi)  Approves the 2021/22 General Fund Revenue Budget as detailed in Annex 1.1(a) of the MTFF at Annex 1.1.

  vii)  Notes that the Executive’s budget proposals are based on the assumptions detailed within the MTFF and that this includes an increase in the Adult Social Care precept of 3.00% and an increase in the general council tax of 1.99%, allowable under general powers to increase council tax without a referendum.

  viii)  Approves additional general fund pressures totalling £36.81M in 2021/22 as detailed in paragraph 50 of Appendix 1. 

  ix)  Approves savings proposals totalling £10.68M that are included in the 2021/22 General Fund Revenue Budget, with £7.14M in 2022/23, as detailed in paragraphs 53 to 56 of Appendix 1.

  x)  To note proposals for the use of the Local Council Tax Support Grant will be brought forward during 2021/22, as detailed in paragraph 75 of Appendix 1.

  xi)  To delegate authority to the Executive Director for Finance, Commercialisation & S151 Officer, following consultation with the Cabinet Member for Finance and Income Generation, to do anything necessary to give effect to the proposals contained in this report. 

  xii)  Sets the Band D Council Tax for Southampton City Council at £1,644.39 for 2021/22, a Net Budget Requirement of £173.85M and the Council Tax Requirement for 2020/21 at £105.88M as per Annex 1.2.

  xiii)  Notes the estimates of precepts on the council tax collection fund for 2021/22 as set out in Annex 1.3.

xiv)  Agrees that the following amounts be now calculated by the Council for the financial year 2021/22 in accordance with Section 31 and Sections 34 to 36 of the Local Government Finance Act 1992; and

Determines in accordance with Section 52ZB of the Act that the Council’s relevant basic amount of Council Tax for 2021/22 is not excessive in accordance with principles approved by the Secretary of State under Section 52ZC of the Act.

(a)  £512,018,229 (Being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act).

(b)  £406,137,601 (Being the aggregate of the amounts which the Council estimates for  ...  view the full minutes text for item 32.