Issue - meetings

The report of the Executive Manager – Finance and Corporate Services is attached.

It is RESOLVED that

a)           the revised financial impact of Covid-19 on the Council’s Medium Term Financial Strategy (MTFS) and the inclusion of these estimates and use of reserves and balances in the revised budget due be taken to Full Council be noted; and

b)           the contractual position and the ongoing extension to the Contract Variation agreement with Parkwood Leisure be noted.

The Portfolio Holder for Finance presented the report of the Executive Manager – Finance and Contract Services providing an update on the budget position reported to Cabinet on 9 June 2020 of the projected impact of Covid-19.

The Portfolio Holder for Finance confirmed that this was the third report on the impact of Covid-19 on the Council’s budget, and it was expected that figures would continue to change.  The leisure sector had been severely impacted; however, it was now hoped that there would be a partial reopening of leisure centres from 25 July 2020.  It was hoped that public confidence would continue to be restored to ensure the use of Council facilities going forward.  The Cabinet would continue to be updated at each meeting, with a revised budget reported to the Council meeting in September 2020.  Everyone was aware of the graveness of the situation, particularly for local businesses and communities and it was important that everyone worked together to ensure Rushcliffe remained a great place to live and work.

The Portfolio Holder for Finance welcomed the Central Government funding of £1.23m; however, it was clear even in the short term that it would be insufficient to meet the budget shortfall.  The report highlighted the further funding measures that had been announced to help bridge the gap; although it was unclear how the funding deficit in relation to the Council’s leisure centres would be funded.  Based upon current Government funding, this financial year, the budget gap was expected to be at least £1.25m, with a worst-case scenario of £2.5m, if Covid-19 returned over the winter.  In respect of Revenue Budget pressures, the impact on fees and charges and commercial income had been significant during lockdown and it was estimated at £2m for a worst-case scenario.  The Council continued to incur additional costs estimated at £1.5m for a worst-case scenario, primarily from supporting Parkwood Leisure, with the Parkwood contract being regularly monitored, the use of agency staff to support waste collection, additional accommodation to support the homeless and additional costs on managing parks and open spaces.  Changes to financial projections would continue to be reported to the Cabinet and Corporate Overview Group and the Council remained committed to ensuring the health and wellbeing of the community, maximising the use of its assets and ensuring the best economic outcome for the Council.  The improved performance of Edwalton Golf course was noted and welcomed.  Capital Programme issues, including capital receipts and the viability of existing projects had largely remained unchanged since the last report, and the Cabinet would be updated at its next meeting.  In respect of Council Tax and Business Rates collection, as of 1 July 2020, collection rates for Council Tax had reduced by 1.1%, which equated to approximately £1m; with £80k of that total for the Council.  Business Rates had been largely unaffected because of the significant relief granted to the sector.  The Council had reacted quickly to ensure that over £17.6m in Business Grants had been paid out  ...  view the full minutes text for item 7