Issue - meetings

To submit a report by the Director of Function (Resources)/Section 151 Officer.

It was resolved to note the following –

·        The position set out in respect of the financial performance of the Housing Revenue Account (HRA) for Quarter 1 2020/21.

·        The forecast outturn for 2020/21.

The report of the Director of Function (Resources)/Section 151 Officer setting out the financial performance of the Housing Revenue Account (HRA) Budget for Quarter 1 2020/21 was presented for the Executive’s consideration.

The Portfolio Member for Finance reported that the revenue financial position for the first quarter shows an underspend of £220k. The income forecast is £50k below the original budget, and expenditure is forecast to be £50k below the original budget. Capital expenditure is £421k below the profiled budget and the forecast expenditure is £2,112k below the budget. The forecast deficit therefore (combining both revenue and capital) is £2,112k less than the budget (reducing the planned deficit to £4,976) largely the result of lower than budgeted capital expenditure.

The Director of Function (Resources)/Section 151 Officer advised that the opening balance of the HRA reserves stood at £8,597k.The revised budget allowed for the use of £7,088km of this balance. Forecast underspend on the capital budget will result in an additional £2,112k being transferred into the reserve. This will give a reserve balance of £3,621k by the end of the financial year which will be available to fund housing schemes into next year the HRA being ring-fenced to fund costs associated with the Council’s housing stock. On the revenue side income was less than forecast due to fewer new housing units becoming available to be let than originally projected, but this was offset by reduced repairs and maintenance expenditure with all but the most urgent repairs being suspended during the lockdown period.

It was resolved to note the following –

•          The position set out in respect of the financial performance of the Housing Revenue Account (HRA) for Quarter 1 2020/21.

•           The forecast outturn for 2020/21.