Issue - meetings

A report from the Executive Director – Resources is attached. (Key decision – reference number 5203)

Councillor Mary Maguire (Cabinet Member for Finance and Procurement) introduced the report of the Executive Director – Resources setting out the Council’s revenue budget monitoring position based on information to the end of December 2020.

NOTED

1.                    That paragraphs 33 to 109 of the report provided the underlying position in the General Fund as at quarter 3 of £1.4m favourable variance after the flexible use of capital receipts of £1.9m were applied.

2.                    That paragraphs 110 to 143 of the report provided an update on the Covid-19 financial impact of £73.1m. All expenditure had been included as explained in detail in the purpose of the report (paragraphs 1 to 11 referred).

3.                    That the Council remained in a financially challenging position for 2021/22 as set out in detail in the report.

4.                    The Council would maintain a robust, resilient and sustainable budget whilst continuing to respond appropriately to the impact of the ongoing pandemic. The detailed information provided in the report was outlined including in-year savings; fees and charges; and, Council reserves.  

5.                    The forecast outturn position for the Dedicated Schools Grant as set out in the report.

Alternative Options Considered: Not relevant in the context of this report.

DECISION: The Cabinet agreed to

1.            Note the General Fund and Dedicated Schools Grant (DSG) forecast revenue outturn position for 2020/21.

2.            Note the Covid-19 impact of £73.1m or £18.9m net of grants and the Council’s response to mitigating this pressure.

3.            Note that without the pandemic the Council’s service budgets were reporting a £1.4m favourable variance.

4.            Note that the £1.6m planned drawdown from reserves and the corporately held contingency budget of £3m would no longer be required, enabling reserves to be strengthened.

5.            Note the progress made on the journey to setting a robust and resilient budget.

6.            Request that Executive Directors continue to work with Cabinet Members to robustly manage the underlying budget position and implement savings, whilst managing, mitigating and minimising the Covid-19 financial impact.

7.            Recommend that Cabinet Members note the forecast level of reserves and implications for 2020/21 and over the life of the Medium-Term Financial Plan (MTFP).

8.            Note the challenging financial position and need to draw on reserves to balance the overall budget for 2021/22.

Reason: To ensure that Members were aware of the forecast outturn position, including the level of reserves for the authority, including all major variances which were contributing to the outturn position and the mitigating actions being taken and proposed to manage the financial position for 2020/21.

(Key decision – reference number 5203)