Agenda item

To consider the 2021/22 Financial and Treasury Management Outturn reports.

The 2021/22 Financial Outturn and Treasury Management Outturn reports will be published as a supplementary appendices in advance of the Scrutiny Board meeting.

In introducing the 2021/22 Financial Outturn and Treasury Management Outturn reports it was noted that the Scrutiny Board has a standing commitment to monitor financial health and performance throughout the financial year, to identify emerging issues and to bring forward any appropriate recommendations to the Executive in this regard.

As part of this function, at the start of the new municipal year, the Scrutiny Board receives the annual Financial Outturn and Treasury Management Outturn reports.

The following were in attendance for this item:

Cllr Debra Coupar – Executive Member

Victoria Bradshaw – Chief Officer, Financial Services

Victoria Bradshaw introduced the report, noting that the appended outturn reports would be considered by Executive Board on 22 June 2022. The Chief Officer confirmed that the 2021/22 end of year position was a net underspend of £1.5m. She highlighted that the underspend followed an overspend of £27.8m as a result of pandemic related pressures.

It was noted the Treasury Management report reflects that there are currently no concerns about staying within authorised or operational limits.

The Board discussed the impact of the current economic situation on the budget and noted future risks including rising energy prices, general inflationary rises and increases in interest rates. 

An invitation to a remote training session on 4 July 2022 10-11.30am has been circulated to all Board members. Victoria will brief members in more detail on the key assumptions in the LCC budget and the potential impact of external factors such as inflation. It is hoped this will be of assistance to members ahead of the Board’s consideration of the Medium-Term Financial Strategy in the Autumn.

The Chair asked that the thanks of the Board be passed onto the finance team for the robust management of a very complex budget during what has been a challenging year.

Board members considered the cost and response to disrepair cases and the increased borrowing costs associated with the capital programme.

Victoria Bradshaw committed to providing further information about the capital schemes being funded through prudential borrowing in 2022/23 and the background to variations in levels of ward-based initiative allocations. 

Cllr Coupar advised the Scrutiny Board that work is ongoing to mitigate some of the risks posed by disrepair cases now covid restrictions on working arrangements have been removed. While disrepair falls within the remit of another Scrutiny Board, it was suggested that members of the Strategy and Resources Scrutiny Board be sighted on the disrepair action plan to provide reassurance that steps are being taken to address the pressure on the budget.

Thanks were noted for the work of Eve Roodhouse, Phil Cole and their staff for in ensuring the effective distribution of Covid-related grants.

The Board noted the pressures on the budget within Children’s Services, as well as highlighting the budget pressures created by lost income during the pandemic in directorates such as city development.

Concern was expressed about the extent to which the Scrutiny Board receives information about ‘business as usual’ savings. Victoria Bradshaw responded by noting that such decisions are taken by officers within the Council’s delegation scheme. The savings proposals that are considered by scrutiny are those that would require consultation and/or have a significant impact on service delivery, local communities or staffing structures.

Victoria confirmed that the £1.5m underspend will be transferred to the General Fund.

RESOLVED –

-  That the report be noted.

-  That the disrepair action plan be circulated to Strategy and Resources Scrutiny Board members for information.

-  That the following information be provided by the Chief Officer for Financial Services:

a)  Details of the capital schemes being funded through prudential borrowing in 2022/23

b)  Context for variations in levels of ward-based initiative allocations set out in appendix 5c of the supplementary pack.