Agenda item

To monitor and review the Council’s performance and financial position (including revenue forecast outturn); revenue expenditure (including key risks and opportunities); capital expenditure; and HRA revenue and capital expenditure and reserves.

Period 6 Finance Report 2020/2021

5.1       The Committee noted the contents of the Period 6 Finance Report, which provided details of the forecast outturn in respect of revenue and capital by Cabinet Portfolio; together with projected revenue and capital expenditure, key risks and opportunities.

5.2       The Committee was advised that the Finance Report projected a year to date variance of £36.5 million (against indicative forecasts for the rest of the year with adverse variance of £50 million before taking into account any offset from government funding). The Committee heard that the biggest impact on the Council’s finances had resulted from income stream reductions and additional expenditure related to supporting communities and reduced footfall. The Committee also heard that major income streams with losses had included parking, commercial waste, licensing, road management, registrars and city events.

5.3       The Committee was further advised that the Finance Report projected a gross expenditure variance of £98.37m on the 2020/2021 Capital Expenditure. The Committee heard that the Housing Revenue Account (HRA) revenue forecast was for an in-year underspend on its capital programme of £68.815m, due to the impact of Covid-19 causing delays in project completion and preventing access to properties (due to government guidelines. Officers advised the Committee that the variances, risks and opportunities within Cabinet Portfolios would continue to be monitored closely as the year progressed.

5.4       The Committee discussed key issues which included the reduced availability of external funding sources (including TfL); projects in Bayswater; the funding for highways; the Council’s exposure to commercial and rental incomes not currently covered by governmental schemes; the impact of government financial assistance; the number of households in Temporary Accommodation; and the need for £90m in savings over three years. The Committee in particular observed the high levels of uncertainty around the numbers under discussion and referred to execution risks and the work of the Budget scrutiny task group.

            ACTIONS: the Committee requested:

1)         more information about the Brunel Estate as well as the Ashbridge and Ebury projects (Debbie Jackson).

2)         an indication in future reports of plans relating to execution risks and what work would be undertaken as part of the scrutiny of the budget.

Quarter 2 Performance Report.

5.5       The Committee received a report which summarised the City Council’s performance at the end of the second quarter of the 2020/2021 financial year against City for All priorities, the impact of Covid-19 and strategic risks. The Performance Report set out progress and figures until November.

5.6       The Committee discussed key issues and commended the work and achievements of the Westminster Employment Service in assisting Westminster residents to achieve sustainable employment.

5.7       The Committee also observed that several Key Performance Indicators were off-track and that there was insufficient data and linkage with risk scores or detail of mitigating actions. The Committee discussed the national Covid-19 vaccination programme but noted concerns over historical rates of immunisation in Westminster.

5.8       Other key themes to emerge from the Committee’s discussions included 14 high level new appointments to roles within the Council, including at Executive Director level; food inspections (decreased due to the Covid-19 context); gang activity; child abuse referrals; Business Grants; and performance indicators which would be more meaningful in a post-pandemic context. The Committee also discussed that it would have been useful to have had detail on what mitigating actions were being taken in respect of risks in addition to explanation of the Brexit Strategy Board.

5.9       RESOLVED: that the Committee record its concerns, note the report and request further information.

            ACTIONS: the Committee requested the following:

1)         more information on Electric Vehicles, dedicated resident bays, how easy it was for residents to secure these bays and at what cost (Raj Mistry/Twila Grower).

2)         Details about the Brexit Strategy Board (Debbie Jackson/Pedro Wrobel).

3)         The immunisations programme.

4)         The latest report on the IGXU (Andrew Tagg).

5)         Linkage between risk scores and performance indicators (Pedro Wrobel).

6)         Circulation of the Westminster Employment Service report which went to scrutiny (Debbie Jackson).