The Director of Finance and Business Improvement introduced the report which included a Risk Update shown in Appendix 3 to the report at the request of the Committee following its June 2020 meeting. The impact of Covid-19 on the revenue budget shown in Appendix 1, with some mitigation achieved through the projected underspend on interest costs from a reduction in borrowing to fund the Capital Programme. The projected overspend for the current financial year was £3million. The Council was in the process of applying for a government scheme that would fund up to 75% of the income loss experienced from Sales, Fees and Charges. The current financial situation could be affected by a resurgence in Covid-19.

The major projects arising from the Capital Programme that included work to Brunswick Street, Union Street and the Innovation Centre would continue. In reference to Appendix 3 to the report, a higher level of risk had been attributed to the EU transition due to the threat of a No-Deal Brexit. The risk associated with poor partner relationships had been reduced due to the Council’s performance with its’ partners and specifically the Parish Councils during the Covid-19 pandemic and lockdown period.

The Head of Policy, Communications and Governance highlighted that one of the three strategic indicators did not reach the first quarter target but was within 10% of the target. A total of 26 targetable indicators were reported to service committees, of which six did not achieve the target set, with four of these sat under the ‘A Thriving Place’ strategic priority, and had been impacted heavily by the coronavirus pandemic and the lockdown period.

The number of affordable homes missed the target by 12 homes which was a direct result of the pandemic as site operations were forced to close temporarily. The construction work has now resumed with Covid-19 measures in place, and would take longer to complete.

RESOLVED: That

1.  The Revenue position as at the end of Quarter 1 for 2020/21, including the actions taken or proposed to improve the position, where significant variances have been identified, be noted;

2.  The Capital position at the end of Quarter 1 be noted;

3.  The Performance position as at Quarter 1 for 2020/21, including the actions being taken or proposed to improve the position, where significant issues have been identified, be noted; and

4.  The Risk Update, attached at Appendix 3 to the report, be noted.