Agenda item

The Chairman invited Ben Jay, Assistant Director for Finance and Anisa Darr Chief Finance Officer to present the report. Mr Jay provided a summary and breakdown of each section of the Chief Financial Officer report.

The Committee noted the summary of the budget forecast for the main operations of the council as set out within the report. Members queried whether there would be any anticipated drawdown of reserves for the current financial year.

Mr Jay stated that it should be possible to manage the current financial year without any unplanned or Covid-19 related use of reserves in the general fund – subject to the detail of the recently announced government funding and future Covid-19 related costs as they materialise. He noted that whilst uncertainty remains for future years, the SR20 statement has provided support for the next financial year.

Members queried how the overall financial position of the Council compares to other boroughs taking into account Covid-19 related pressures.

Ms Darr informed Members that Covid-19 recovery and related pressures had an impact on the financial standing on the local authority sector as a whole, with some authorities (but not Barnet) requiring direct intervention.

As for Barnet, Ms Darr noted that the Covid-19 financial position is under review and continuously monitored for clearer understanding and reported for scrutiny to this Committee.

In response to the below two requests it was agreed that Officers provide the following data to Councillor Levine and the Chairman (Action Finance):

a)    the number of applications made by local businesses for grant funding but which were rejected

b)    the number of applications paid out but subsequently challenged as a result of concerns regarding eligibility

The Committee commended Officers for the analysis and reporting on the overall position in relation to Covid-19 related funding and costs.

Following a query about setting a target for HRA reserve contingency, Officers noted that generally HRA reserves should be positive. Furthermore, in Barnet the target figure is set around £3m which is also the case for the current financial year.

Ms Darr noted that in the absence of clear guidelines, local authorities have discretion as to risk appetite taking into consideration local factors. The Committee also head about the ongoing work with The Barnet Group to review the appropriate target balance for the HRA general reserve, the Major Repairs Reserve and the Depreciation Policy. The outcome of which will be reported to the January Housing & Growth Committee as part of the HRA Business Plan. 

Members requested that an explanatory note be added for future CFO reports in respect of Table 13 Funding the Capital Programme 2020/21, in order to clarify that the unfunded figure cannot be spent unless the associated funding bid is successful. (Action: CFO Reporting)

The Committee noted that the overall debtors decreased by £329k between September and October 2020 and highlighted the importance of continued vigilance in this area.

It was RESOLVED thatthe Committee:

1.    Noted the current financial forecast outturn for 2020/21 and the level of uncertainty within that forecast;

2.    Noted the cost of the pandemic and the operational response to it;

3.    Noted the current view on use of reserves, and the outlook;

4.    Noted the current debtor position and related action.