Issue - meetings

A report from the Executive Director – Resources is attached. (Key decision – reference number 5215)

Councillor Mary Maguire (Cabinet Member for Finance and Procurement) introduced the report of the Executive Director – Resources updating the assumptions in the Medium-Term Financial Strategy approved by Cabinet in July and bringing forward early savings proposals for 2021/22.

NOTED

1.            That the cost of the Covid-19 pandemic on the Council to date was approximately £64m; £27m of Government funding had been received so far. Prior to the pandemic the budget gap for 2021/22 had been estimated to be £1.75m; this had now risen to more than £18m.

2.            That the report proposed bringing forward early savings proposals for 2021/22. The Council was continuing to lobby the Government robustly for full funding to meet the costs of the pandemic.

3.            The number of Covid-19 related financial risks as detailed in the report. The challenges and uncertainties continued into the medium term. This included the Collection Fund deficit which were forecast to be £19.207m; local authorities could run a deficit for three years.

4.            The significant number of residents in the Borough who had been furloughed and the increasing unemployment rates. Members noted the impact on the Council Tax Support fund which would continue to help to support the poorest families with their Council Tax payments.

5.            The increasing cost pressures on demand-led services as set out in the report.

6.            The significant level of uncertainties faced; for example, it was anticipated that there was likely to be only a single year announcement for Local Government funding for 2021/22 in December; Government funding reform had been delayed; the Fair Funding Review and Business rates reset would not take place before 2022/23; and, there had been no visible progress on Adult Social Care Funding, as detailed in the report.

7.            The detailed savings proposals outlined in the report. A further report with additional savings would be presented to Cabinet in December.

8.            That the experiences being faced by the Council were mirrored by other local authorities nationwide. A comprehensive Government funding plan for local government was required to meet the funding gaps arising from the impact of Covid-19 and to provide future stability and financial planning. This had followed ten years of austerity. The Cabinet was committed to do everything possible to seek to protect its most vulnerable residents and to maintain crucial services. This was a difficult economic period and residents would continue to seek support from the Council.

9.            The risks and uncertainties being faced, as set out in the report. The pressures detailed in paragraphs 38 to 45 of the report were highlighted.

Alternative Options Considered: None applicable to this report.

DECISION: The Cabinet agreed to

1.            Note the significant impact of Covid-19 on the Council’s financial position:

(a)  Excluding the impact of Covid-19; after the identification of £7.313m savings and income generation being brought to Cabinet for approval in this report, plus a further £2.690m to be considered at December Cabinet the updated budget gap for 2021/22 was £1.715m.

(b)  Including the impact of Covid-19; the updated budget  ...  view the full minutes text for item 7