Issue - meetings

A report was presented which informed Members about the progress of the finance improvement programme which had contributed to an estimated revenue surplus of £200,000 against the baseline budget of £10.6 million. Slippage of £3.4 million against the £15.7 million capital programme was being projected, together with a £200,000 surplus for the Housing Revenue Account. A £1.3 million Council Tax collection shortfall was forecast, although borrowing was not expected to be necessary to meet cashflow needs.

A summary of each Policy Committee’s budgetary position was also provided. As far as Strategy & Resources was concerned, an overspend of £550,450 was projected against a baseline revenue budget of £2,411,531. This comprised an overspend of £675,150 attributed to Covid-19, offset by a £124,700 underspend on business as usual activities.

The Chief Finance Officer acknowledged the challenges associated with the £2.7million savings target for 2021/22, progress against which would be conveyed to Members in monthly finance reports. More effective management of the capital programme would also be a priority.

Discussion focused on the £197,000 per annum shortfall in net budgeted rental income following the decision not to proceed with the property purchase supported by the Investment Sub-Committee on the 24^th January and 21^st May 2020. Opposing views were expressed regarding the merits of the Sub-Committee’s 21^st May 2020 decision in the context of prevailing Government guidance to local authorities, both on that date and at the time when the Council’s interest in the purchase was withdrawn. Rental yields from Quadrant House, Caterham and 44 Week Street, Maidstone were also discussed.

            R E S O L V E D – that the Committee and the Council’s forecast revenue and        capital budgets position for the year be noted.