Decision details

RESOLVED:

That the Cabinet:

1.    Note the budget monitoring position and treasury management update as at June 2022 (Month 3) as outlined in Part A of this report.

2.    Approve the financial recommendations set out in Part B of this report below:

a.         Approves a virement of £220k from the General Capital Contingency budget to the Corporate Technology and Innovation Programme to support the Network and Telephony project.

b.        Accept a grant award of £703k from the Market Sustainability and Fair Cost of Care Fund to prepare Social Care markets for reform.

c.         Approve acceptance of £100k grant funding from the Department for Environment, Food, and Rural Affairs (DEFRA) for costs associated with the delivery of new post-Brexit port health authority functions at the Heathrow Imported Food Office.

d.        Approve acceptance of £9k grant funding from the Department for Environment, Food, and Rural Affairs (DEFRA) for the implementation of legislation relating to allergen labelling changes for prepacked direct for sale food.

e.         Approve an increase in the fee charged to funeral directors for storage costs to £30 per day starting 48 hours after the coroner has released the body.

f.          Approve acceptance of gift funding in relation to a Planning Performance Agreement in accordance with the provisions of Section 93 of the Local Government Act 2003 for;

                                         i.    NCP Car Park - £17,500

                                       ii.     Denville Hall - £17,500

                                      iii.    Crown Trading - £32,000

                                      iv.    Nestle Block - £17,500

g.        Ratify an urgent decision taken by the Leader of the Council, in consultation with the Cabinet Member for Children, Families & Education, to implement updated fees for the Music Service for 2022/23, due to the necessity to notify parents before the start of the September 2022 academic term.

Reasons for decisions

Cabinet was updated on the forecast revenue, capital and treasury position for the current year 2022/23 in order to ensure the Council achieved its budgetary and service objectives.

The Cabinet Member for Finance outlined the challenge of inflation and informed Members that the Government’s funding for Covid-19 related pressures had now come to an end, which the Council was now having to absorb going forward. It was noted that earmarked reserves had been used to support the Council in meeting such pressures, whilst the Council’s savings programme was also generally on track.

In respect of the capital programme, an underspend of £26.3m was noted due to project slippage and in respect the Dedicated Schools Grant, it was welcomed that the balance on this would be reduced soon, due to the Safety Valve agreement the Council had entered into with the Department for Education.

A number of financial recommendations were moved by the Cabinet Member and agreed by Cabinet, including the acceptance of Government grants, an increase in funeral director fees, gift funding for key planning developments and ratification of an urgent decision taken in respect of introducing more sustainable fee levels for the Music Service.

The Leader of the Council welcomed the report, noted the challenging times and thanked Council officers for their work in managing budgets.

Alternative options considered and rejected

None.