Decision details

A report was considered which provided revised Group budget forecasts to the end of the financial year 2021/22 and recommended the adoption of the budget estimates, adjustment to budgetary ceilings and the distribution of grant received.

The Board was informed that a Quarter 2 budget revision exercise had been undertaken at the end of November 2021.  The results of the exercise highlighted a number of issues that would influence the MCA’s financial position over the remainder of the financial year, as well as planning for the medium term.

1.      Whilst government funding for bus and tram had been committed to the end of the year, uncertainty on post-March support was increasing the risk that operators pre-emotively would begin service reductions over Quarter 4.

2.      The MCA would receive a further tranche of Additional Restrictions Grant to support those businesses affected by the latest Covid variant.

3.      The budget was now flexed to accommodate activity supported from the region’s successful Community Renewal Fund bids.

4.      Flexibilities secured with government now meant that the Getting Building Fund expenditure targets should be met.

5.      Capital programme slippage was now likely to move a significant amount activity to the new financial year.

RESOLVED – That the Board:

i)       Adopt the revised budget estimates.

ii)       Note the slower than forecast pace of the capital programme.

iii)       Approve the acceptance and distribution of the Additional Restrictions Grant top-up of £1.72m for the year ending March 2022.