The Director of Finance and Business Improvement introduced the report, which reviewed the previous year’s financial performance. Although the pandemic severely impacted the Council’s finances, the receipt of government grants and mitigation measures taken by the Council had resulted in an overall underspend of £1.2 million.

The Committee’s revenue position showed an adverse variance, with a significant overspend incurred on the Leisure Centre due to the contractual obligation for the Council to compensate Circo for their losses during the pandemic. The capital position showed some slippage on the Mall bus station redevelopment, and the dam works had been completed and endorsed by the Environment Agency. 

The Senior Business Analyst outlined the key performance indicators (KPIs) reportable to the Committee, and explained that four of the six KPIs for the fourth quarter missed their targets by more than 10% which was attributable to the national lockdown during this period. Unemployment within the working age population had increased to 5.3% however it was noted that the figure for May 2021 had dropped to 4.9%. The number of visits per month to Visit-Maidstone.com had achieved more than double its target.

This mirrored the annual performance figures, for which the same four KPIs had missed their annual targets, and the number of visits to Visit-Maidstone.com had overperformed.

In response to questions, the Director of Finance and Business Improvement confirmed that learning had taken place during the pandemic with regards to the financial impact of contractual obligations which would be reflected when entering into future contracts.

RESOLVED: That

1.  The Revenue position as at the end of Quarter 4 for 2020/21, including the actions being taken or proposed to improve the position, where significant variances have been identified, be noted;

2.  The Capital position at the end of Quarter 4 be noted; and

3.  The Performance position as at Quarter 4 for 2020/21, including the actions being taken or proposed to improve the position, where significant variances have been identified, be noted.