Issue - meetings

(i)       note the positive cash position that has been achieved for the General Fund and HRA to the end of Quarter 2 as detailed in Appendix 1;

(ii)       note the Common Good financial performance to the end of Quarter 2 as detailed in Appendix 3;

(iii)      note that the General Fund full year forecast position, as detailed in Appendix 2, has improved compared to the forecast at Quarter 1 and it is still expected to show a balanced position overall for 2021/22 through the mitigations contained within the report;

(iv)      note that the HRA full year forecast position, as detailed in Appendix 2, is on target to achieve the approved budget, making a contribution to HRA reserves for 2021/22;

(v)      note that the forecast for General Fund capital expenditure is that there will lower spend than has been profiled for 2021/22, and for Housing capital expenditure this will be on budget, as described in Appendix 2;

(vi)      note the construction inflation pressures being experienced across the capital programmes and instruct the Chief Officer – Finance to recommend a risk fund/contingency be included in the refreshed capital programmes which will be presented to the Council’s budget meeting on 7 March 2022;

(vii)     note the current permission from Scottish Government to use capital receipts for voluntary severance/early retirement revenue costs ends on 31 March 2022;

(viii)    note that unless extended, alternative revenue funding would have to be found or changes made to the scheme; and

(ix)      agree to instruct the Chief Executive to write to the Cabinet Secretary for Finance and the Economy requesting an extension to the current permission as noted at Section 6 (Financial Risks) engaging COSLA as appropriate and agree that the matter be referred to the budget process for consideration.

The Committee had before it a report by the Director of Resources which provided the financial position of the Council as at Quarter 2 (30 September 2021) and the full year forecast position for the financial year 2021/22, including:-

·            General Fund and Housing Revenue Account (HRA) and capital accounts; and associated Balance Sheet; and

·            Common Good revenue account and Balance Sheet.

The report recommended:-

that the Committee –

(a)      note the positive cash position that has been achieved for the General Fund and HRA to the end of Quarter 2 as detailed in Appendix 1;

(b)      note the Common Good financial performance to the end of Quarter 2 as detailed in Appendix 3;

(c)      note that the General Fund full year forecast position, as detailed in Appendix 2, has improved compared to the forecast at Quarter 1 and it is still expected to show a balanced position overall for 2021/22 through the mitigations contained within the report;

(d)      note that the HRA full year forecast position, as detailed in Appendix 2, is on target to achieve the approved budget, making a contribution to HRA reserves for 2021/22;

(e)      note that the forecast for General Fund capital expenditure is that there will lower spend than has been profiled for 2021/22, and for Housing capital expenditure this will be on budget, as described in Appendix 2; and

(f)       note the construction inflation pressures being experienced across the capital programmes and instruct the Chief Officer – Finance to recommend a risk fund/contingency be included in the refreshed capital programmes which will be presented to the Council’s budget meeting on 7 March 2022;

The Committee resolved:-

(i)       to approve the recommendations contained within the report;

(ii)       to note the current permission from Scottish Government to use capital receipts for voluntary severance/early retirement revenue costs ends on 31 March 2022;

(iii)      to note that unless extended, alternative revenue funding would have to be found or changes made to the scheme; and

(iv)      to agree to instruct the Chief Executive to write to the Cabinet Secretary for Finance and the Economy requesting an extension to the current permission as noted at Section 6 (Financial Risks) engaging COSLA as appropriate and agree that the matter be referred to the budget process for consideration.