Issue - meetings

Meeting: 14/07/2021 - Cabinet (Item 17)

17 Revenue and Capital Budget Outturn for 20/21 pdf icon PDF 606 KB

Report of the County Treasurer (CT/20/48) containing the outturn position for 2020/2021, attached.

Additional documents:




(a) that the draft outturn for 2020/21 showing an underspend of £35,000 against the approved revenue budget (after carry forwards and contributions to balances, reserves and provisions) be noted;


(b) that the 2020/21 revenue outturn be approved, including transactions on earmarked reserves and provisions, spending against budget, treatment of over and under spending and the implications for balances, as set out in the tables and the narrative of the Report;


(c) that the 2020/21 capital outturn be approved including spending against budget and proposed carry forwards, in accordance with the tables;


(d) that the use of capital finance as set out in the Determination of Capital Finance section 11 of the Report also be approved;


(e) that a total of £14.257 millions be set aside from revenue resources as Minimum Revenue Provision (provision for credit liabilities to repay



(f) that the Prudential Indicators as set out in section 10 of the Report be noted;


(g) that the total monies owing to the Council as at 31st March 2021 also be noted; and


(h) that the Cabinet place on record their gratitude to the County Treasurer and her team for their exceptional management of the Council’s finances during a very difficult year.


(Councillors Connett, Dewhirst and Hannaford attended in accordance with Standing Order 25(2) and spoke to this item).


The Cabinet considered the Report of the County Treasurer (CT/20/48) containing the outturn position for 2020/2021, circulated prior to the meeting in accordance with regulation 7(4) of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012.


Members had received regular budget monitoring reports throughout 2020/21 in which budget pressures and risks had been identified. The most significant of these related to front line services ability to respond to demands faced during the Pandemic whilst maintaining business as usual services to the people of Devon.


In summary, and as set out in the Report, the final outturn had been better than anticipated, therefore it had been possible to make an additional £4.8 millions contribution to the Budget Management Reserve, a £1 million contribution to the Bellwin Scheme Related Emergency Reserve, £1.5 million had been transferred to the Climate Change Emergency Reserve as well as the usual contribution to the Business Rates Risk Reserve of the Business Rates Pooling gain of just over £2.3 millions.


When Council had approved the 2021/22 budget in February 2021, it had been agreed to use £5.3 millions (£3 millions in 2021/22 and a further £2.3 millions in 2022/23) from the Business Rates Risk Management Reserve for Economic Recovery. This was now shown in a new Regeneration and Recovery Reserve.


The Dedicated Schools Grant Special Educational Needs and Disabilities (SEND) Service continued to be under significant pressure. As reported in year, a Statutory Instrument had been issued that stated all DSG deficits carried over from 2019/20 into 2020/21, and any subsequent deficit positions for the term of the override, should be moved to an unusable reserve through a statutory accounting adjustment until April 2023. The SEND element of the Dedicated Schools Grant year-end position was a shortfall of £29.2 millions. When combined with £19.8 millions deficit brought forward from 2019/20 the cumulative deficit was just under £49 millions which was now being held on the Dedicated Schools Grant Adjustment Account. This was reported in full in paragraph 5.2 of the Report.


The Cabinet noted that the financial year had now ended and the overall authority position, excluding the SEND deficit and after transfers to and from

Reserves, was a small underspending of £35,000. Detailed explanations of the final financial position for each service area were given in section 2 of the Report, however the headline figures were outlined below;


·         Adult Care and Health Services showed an overall net underspend of £602,000 after carry forward requests;

·         Children’s Services, excluding the Dedicated Schools Grant was an overspend of £1.8 millions;

·         Communities, Public Health, Environment and Prosperity showed an overall underspend of just over £1.8 millions;

·         Corporate Services showed an overall underspend of £401,000 after taking into account grants and contributions carry forward, and any other carry forward requests; and

·         Highways and Traffic Management service had achieved a break-even position, after carry-forwards. Additional expenditure totalling £2.5 millions had been  ...  view the full minutes text for item 17