Issue - meetings

Purpose of Report

The purpose of this report is to update members on the current Revenue Budget position of the Council as at the end of the first quarter for 2021/22 in accordance with the proposals set out in the “Portsmouth City Council - Budget & Council Tax 2021/22 & Medium Term Budget Forecast 2022/23 to 2024/25” report approved by the City

Council on 09 February 2021.

Recommendations

It is recommended that:

(i)         The General Fund Forecast Outturn for 2021/22 (as at 30th June 2021) is an overall net underspend of and is analysed as follows:

(ii)            The forecast additional spending and forgone income as consequence of the Covid-19 Pandemic totalling £8.27m be noted;

(iii)          Members note that the financial consequences arising during 2021/22 from the Covid-19 pandemic will be met from the provision held within the Council's Corporate Contingency which was set aside specifically for this purpose as approved by City Council on 9th February 2021.

(iv)          Members note that in accordance with approved policy as described in Section 8, any actual non Covid-19 overspend at year end will in the first instance be deducted from any Portfolio Reserve balance and once depleted then be deducted from the 2022/23 Cash Limit.

(v)           In accordance with (iv) above and the requirement that in the first instance any Portfolio overspending must be met from the Portfolio Reserve, that £1,354,400 has been withdrawn from the Cabinet Portfolio Reserve to fund current forecast overspendings, leaving a nil balance.

(vi)          Directors, in consultation with the appropriate Cabinet Member, consider options that seek to minimise any forecast non Covid-19 overspending presently being reported and prepare strategies outlining how any consequent reduction to the 2022/23 Portfolio cash limit will be managed to avoid further overspending during 2022/23.

(i)     The General Fund Forecast Outturn for 2021/22 (as at 30th June 2021) is an overall net underspend of and is analysed as follows:

(ii)            The forecast additional spending and forgone income as consequence of the Covid-19 Pandemic totalling £8.27m be noted;

(iii)          Members note that the financial consequences arising during 2021/22 from the Covid-19 pandemic will be met from the provision held within the Council's Corporate Contingency which was set aside specifically for this purpose as approved by City Council on 9th February 2021.

(iv)          Members note that in accordance with approved policy as described in Section 8, any actual non Covid-19 overspend at year end will in the first instance be deducted from any Portfolio Reserve balance and once depleted then be deducted from the 2022/23 Cash Limit.

(v)           In accordance with (iv) above and the requirement that in the first instance any Portfolio overspending must be met from the Portfolio Reserve, that £1,354,400 has been withdrawn from the Cabinet Portfolio Reserve to fund current forecast overspendings, leaving a nil balance.

(vi)          Directors, in consultation with the appropriate Cabinet Member, consider options that seek to minimise any forecast non Covid-19 overspending presently being reported and prepare strategies outlining how any consequent reduction to the 2022/23 Portfolio cash limit will be managed to avoid further overspending during 2022/2