Issue - meetings

The Portfolio Holder for Corporate Governance, Finance and Resources to submit a report advising Members of the financial position and year end forecast on the Housing Revenue Account at 30 June 2021.

Cabinet NOTED the financial position on the HRA at 30 June 2021 and the year-end forecast for both revenue and capital.

Dawn Garton, Director for Corporate Services introduced the report, the purpose of which was to advise Members of the financial position and year end forecast on the Housing Revenue Account (HRA) at 30 June 2021.

Mrs Garton advised that the revenue position indicated a £270k underspend, which would result in an increase to the regeneration and development reserves to maintain the working balance at its agreed level of £750k.  Capital spend was also forecast to be underspent by £2.17m.  Any key variances in excess of £10k were detailed in the report and were due to the impact of Covid-19 on some services, the difficulties in recruiting staff (resulting in salary savings), and savings from 2 procurement exercises.  The savings were offset to some extent by reduced income due to void properties.  A number of Capital Programme projects would be reviewed following the commencement of the new Development Manager and the Programme would be updated accordingly.

The Leader commented that whilst the underspend on the revenue budget was good news, particularly where it resulted from savings on procurement, it was important to maintain the momentum on planned improvements within the HRA. There was good progress on the stock condition surveys and these would be vital in informing the HRA Business Plan and would better inform the Capital Programme Plans alongside the work of the new Development Manager.  Covid-19 had resulted in delay in areas of repairs and delivery of the Capital Programme.  Expertise of the Development Manager would help to ensure capital money was allocated to the right development projects and that the Council could progress quickly with delivery.

During discussion the following points were noted:

·         It was important to be aware that the sector was currently under a considerable amount of pressure relating to increased costs.

·         Costs may increase following the results of the stock condition survey and upon allocate new contracts.

·         Undertaking ‘stress testing’ may be a good tool to ensure the Council was fully informed on the sector and on the Council’s position.

Cabinet NOTED the financial position on the HRA at 30 June 2021 and the year-end forecast for both revenue and capital.

Reason for Recommendation

The Council, having set an agreed budget at the start of the financial year, needs to ensure that the delivery of the budget is achieved.  Consequently there is a requirement to regularly monitor progress so that corrective action can be taken when required, which is enhanced with the regular reporting of the financial position.