A report from the Executive Director – Resources is attached. (Key decision – reference number 5151)
Councillor Mary Maguire (Cabinet Member for Finance and Procurement) introduced the report of the Executive Director – Resources setting out the revenue outturn position for 2019/20.
1. That the report set out the overall General Fund Revenue; Housing Revenue Account (HRA) and Dedicated Schools Grant outturn for 2019/20, with details of variations provided in the Appendices of the report. A summary of the year end reserves and balances position was set out in detail in Appendix J of the report.
2. The general fund revenue outturn position set out in the report and summarised in Table 1.
3. The trend of improvements in budget setting as noted in paragraphs 20 and 21 of the report. Improved budget setting had reduced the reliance of the Council on capital receipts to manage this position.
4. The detailed explanation of significant budget variations summarised in the report and Appendices B to E of the report. Members noted the continuing budget pressures being faced.
5. The flexible use of capital receipts detailed in the report and in Appendix G of the report. Enfield had chosen this flexibility to fund a number of transformation projects in the last four years (paragraph 86 of the report referred).
6. That the year end position for the Housing Revenue Account (HRA) had changed to a £3.2m positive variance which had been moved into HRA reserves.
7. The outturn position for the Dedicated Schools Grant as detailed in the report and Appendix I.
8. That the Council’s General Fund reserves had remained stable, Members’ attention was drawn to the detailed information on the earmarked reserves in the report and summarised in Appendix J of the report. The Dedicated Schools Grant (DSG) and school balances had large in-year deficits of £5.6m and £4.0m leading to an overall deficit of £7.7m. A plan to bring the DSG funded services into surplus and a strategy to work with schools in financial difficulty was underway (paragraph 111 of the report referred).
9. That the reserves overall were limited, especially in view of the challenging savings targets for 2021/22 and 2022/23. It was important to maintain a tight control on spend, deliver existing savings plans and recover lost income positions due to Covid-19, as highlighted in the report.
10. Regarding the Collection Fund, Council Tax had recorded a £5.3m loss at 31 March 2020 due to collection levels falling below budgeted targets. The negative economic impact of the Covid-19 pandemic as set out in the report was highlighted. The effect on the council tax collection rates and expected fall in business rate income were noted.
11. That the Medium-Term Financial Strategy also referred, as detailed in Minute No.8 below. The Council would continue to lobby the Government for the funding pledged in dealing with the pandemic.
12. That the report set out in detail the revenue outturn position and a clear approach going forward. The outturn position demonstrated the robustness of the Council’s financial monitoring.
13. That in response to the coronavirus pandemic, ... view the full minutes text for item 6