Agenda item

To receive a report from the Executive Director Resources on Revenue Monitoring Quarter 2.                          Key Decision Reference:  KD: 5200

Council is asked to approve a recommendation on fees and charges.

This report is due to be considered by Cabinet on 11 November 2020 and recommended onto Council for approval.  The Cabinet decision will be reported at the meeting. 

Councillor Stewart moved and Councillor Caliskan seconded a motion to extend the time allowed for reports for a further 15 minutes. 

This was agreed without a vote. 

Councillor Maguire moved and Councillor Caliskan seconded the report of the Executive Director Resources setting out the Council’s revenue budget monitoring position to the end of September 2020 (Second Quarter).

NOTED

1.            Councillor Maguire highlighted the following in moving the report: 

·         The report set out the position on projected income and expenditure, both as it was with the Covid situation and also what the situation would have been without the pandemic. 

·         Without Covid, the Council would have had a 0.345m underspend.

·         The impact of Covid had been estimated at £64.6m.  This included forecasted expenditure, loss of income and impact on the savings programme, but not the impact of the second lock down. 

·         Even with the additional money provided by Government, this would still leave a £30.9m gap. 

·         This would put pressure on the Council Tax and although the Government was allowing the Council to run a short term deficit this would be detrimental to financing in future years. 

·         The Council has had to carry out a mid year review of fees and charges which the Council is asked to approve to help bridge the gap. 

·         On top of this, the dedicated schools grant was forecasting an outturn deficit of £2.661m which added to last year’s deficit would reach £7.142m by the end of this year. 

·         The Housing revenue account was also forecasting a £0.7m overspend which is a result of the pandemic. 

·         Table 1 sets out the General Fund Quarter 2 Projected Departmental Outturn Variances 2020/21, Table 2 the Summary of Covid 19 Impact by Department.  Further detail was in the appendices to the report. 

·         Without the pandemic, the Council would have had only a very small overspend.    

·         The savings proposals agreed in July 2020 were on track to deliver.

·         Reserves would continue to be monitored. 

2.            The comments of the majority opposition: 

·         To acknowledge that the Government had given unprecedented support through the furlough scheme, to local businesses and to the Council to support the costs of the pandemic.  This included funding for the homeless, to help vulnerable families. 

·         Concern about the late completion of the accounts and that the Council had failed to repair the finances in the good years, spending too much on consultants and solicitors. 

·         Concern about the increases to fees and charges, including for funerals and burials which was felt to be inappropriate at this time. 

·         To acknowledge that the report was out of date, as since it was written, the Government had given a total of more than £40m to the Council. 

·         The furlough scheme had underpinned the jobs of thousands of Enfield residents.

·         Concern about the £100,000 spent on premises for the Community Hub when the Council owned other buildings which could have been used. 

·         Confirmation was needed that the Council can balance the budget. 

3.            The comments of the majority group: 

·           Welcome and support for the report which showed realistic and balanced financial information. The Health and Social Care budget was in a good position.  Positive work had been done on Modern Slavery, in recruiting social work apprentices and providing support for independent living. 

·           The need for the Conservative Government to come up with a plan for Social Care.  Long term social care funding must be a priority. 

·           The Council was investing in local people and the pandemic had highlighted how important a good social care system was.  Care workers had been front and centre of the Covid response.

·           The increases to fees and charges were in line with neighbouring authorities. 

·           The location of the Community Hub had been chosen as ideal for keeping things in one place and for the purpose of responding quickly to the emergency.  It had enabled the Council to deliver 30,000 food packages and thousands of prescriptions. 

4.            The summing up by Councillor Maguire that the Government had wasted millions of pounds on projects such as the Nightingale Hospitals which had not been used.  The money for rough sleepers had been provided by the GLA, not the Government. 

After the debate the recommendations in the report were put to the vote and agreed with the following result: 

For:  41

Against:  17

Abstentions:  4

AGREED

1.            To note the General Fund, Housing Revenue Account (HRA) and Dedicated Schools Grant (DSG) forecast revenue outturn position for 2020/21.

2.            To note the Covid-19 impact of £64.63m and Council’s response to mitigating this pressure.  It is also recommended that Council notes that without the pandemic the forecast underspend would have been £0.345m for the General Fund and further note the progress made on the journey to setting a robust and resilient budget.

3.         To approve the outcomes of the mid year fees and charges review for implementation from the 1st December 2020.

4.         To note that Executive Directors will continue to work with Cabinet Members to implement action plans to reduce the forecast overspend in 2020/21 and implement savings, whilst managing, mitigating and minimising the Covid-19 financial impact.

5.         To note the forecast level of reserves and implications for 2020/21 and over the life of the MTFP.

6.         To note the forecast pressures of £30.872m for 2021/22 and a budget gap of £18.117m.