Issue - meetings

Annual Corporate Debt Monitoring Performance Report 2019/20

 

 

Meeting: 30/07/2020 - Budget Scrutiny Committee (Item 7)

7 Annual Corporate Debt Monitoring Performance Report 2019/20 pdf icon PDF 591 KB

Minutes:

The Section 151 Officer presented a report to update Budget Scrutiny Committee on the corporate debt position at 31st March 2020.

 

The Section 151 Officer summarised the important parts of the report:

 

1) Paragraph 1.2 gave the main sources of income for the General Fund (Business Rates and Council Tax) and HRA (dwelling rents).

 

2) Table 1 showed the amounts billed for 2019/20 and 2018/19 for comparison. The Council billed £3.1m more in 2019/20 than 2018/19.

 

3) Table 2 showed the level of arrears for this income at 31st March 2020 and 31st March 2019. The Council had £412,000 more outstanding arrears at 31st March 2020, but had raised more income.

 

4) Table 3 showed the amount of the provisions already made in preparation for debts not being paid.

 

5) Paragraph 1.12 showed the Council increased the provisions in 2019/20 in anticipation of the financial effect of Coronavirus on businesses and residents.

 

6) Table 4 showed the summary of the other three tables, resulting in £3.1m more income for 2019/20, the level of arrears at 31st March 2020 being £412,000 higher and the level of provisions being £369,000 higher than last year.

 

The Section 151 Officer explained that from the beginning of the pandemic to 30th June 2020, the Council suspended all recovery action on debts, so the performance figures for collection, reported for Quarter 1 2020/2021 would be below targets. She added that a soft recovery had happened from 1st July 2020 where the Council had started to send out reminders for outstanding amounts.

 

The Section 151 Officer advised that it could take three years before arrears returned to the level they were at before the pandemic.

 

Members had no questions relating to the content of the report.

 

The Portfolio Holder for Finance & Resources suggested that Members read the 2019/20 Outturn report that had been circulated to them, because he felt it included aspects linked to the report in question.

 

The recommendation in the report to note it was moved by Councillor Ray Heffer and seconded by Councillor Natalie Hoy.

 

RESOLVED that the Budget Scrutiny Committee notes the report concerning the Council’s Corporate Debt as at 31 March 2020.

(Section 151 Officer)