Agenda item

The Leader presented the report and commented that despite the challenges faced over the past year by the community, businesses and services, there had been an underspend by £800,000 at the end of the financial year for 2020/2021. The underspend would be allocated to restore general fund balances back up to £13,000,000.

The Leader attributed much of this success to the support provided by the government. Further financial resource had been allocated by the government for the forthcoming financial year.  He highlighted proposals for usage of balances and reserves as outlined in paras 46 and 47 of the report.

During consideration of the report, members acknowledged the significant financial support provided to local government in response to the pandemic. Members also praised the Council’s collective hard work over the past year in successfully managing the finances throughout the pandemic.

Attention was drawn to investments detailed in the report which would positively benefit communities, including the divisional fund and to the two-year extension of the local members capital highways fund.

The Leader was pleased to inform Cabinet that the County Council had been recently shortlisted for the Public Finance Awards for achievements in financial reporting and accountability.

Further to budget scrutiny proposals in January, members were encouraged to look for opportunities for income generation which could be used to support services. Proposals would be welcomed from all members.

Members queried whether the divisional fund could be raised from the present rate of £10,000 to £12,000 to help members to support their local communities which were recovering after the COVID-19 pandemic. The Leader confirmed that he would monitor the spend of the divisional fund throughout the year before considering a change in the amount.

RESOLVED that Cabinet

(a)  Endorsed financial performance for the year ended 31 March 2021 and the unaudited Annual Financial Report and Statement of Accounts 2020/21;

(b)  Approved updates to earmarked reserves and general balances as detailed in paragraphs 42 to 49 of the report;

(c)  Considered the draft Annual Governance Statement for 2020/21 for comment before final approval was sought from the Audit and Governance Committee; and

(d)  Noted the use of grant funding from Central Government in responding to the COVID-19 pandemic during 2020/21.