Issue - meetings

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

It was RESOLVED that the following be approved for submission to Full Council:

a)    the revised projections to the 2020/21 revenue budget and remainder of the current Medium Term Financial Strategy (MTFS) as referred to in Appendix A of the report,as a result of the impact of Covid-19;

b)    the revised projections to the Capital Programme for 2020/21 and the impact on the Capital Programme over the MTFS as referred to in Appendix B of the report;

c)    the changes to the Transformation Strategy as referred to in Appendix C of the report;

d)    the Council Tax Hardship Fund Policy Paper as referred to in Appendix D of the reportand its current application;

e)    the strategy of utilising in-year budget efficiencies, the Organisation Stabilisation reserve, reviewing the use of existing reserves, reduced use of Voluntary Revenue Provision and therefore use of New Homes Bonus; as fiscal levers so the Council balances the budget and delivers its corporate objectives, as referred to in paragraph 4.8.6 of the report; and

f)     the transfer of three reserves totalling to £0.524m, as referred to in paragraph 4.8.7 of the report,to the Organisation Stabilisation Reserve from 2020/21 and the revised anticipated position over the next five years as referred to in Appendix E of the report.

The Portfolio Holder for Finance presented the report of the Executive Manager – Finance and Corporate Services providing an update on the budget position reported to Cabinet on 14 July 2020 of the projected impact of Covid-19, together with an update on the expected budget for the year 2020/21 and the remainder of the current Medium Term Financial Strategy (MTFS). 

The Portfolio Holder for Finance confirmed that two budget-briefing sessions had been held to update Councillors and those had been well attended.  In March 2020, Full Council had approved the Council’s annual budget; however, the impact of Covid-19 had resulted in financial pressures form loss of income and additional support costs.  The Cabinet had received regular updates on those figures, together with details of the Government funding received.  A number of changes had been made to budget projections to cover additional costs and reduced income and it was too early to speculate when some form of ‘normality’ would return.  Prudent estimates had been made upon the levels of income expected in line with Government guidance.  In respect of the current budget position, the report highlighted the ongoing work being undertaken on income streams and expenditure, including the leisure contract, which was a significant expense.  As leisure facilities started to reopen fully again, the Leisure Centre Contract would be reviewed on 30 September and 31 December 2020, with details reported to Cabinet and the Corporate Overview Group.  It was expected that as revenue streams returned the support package for leisure would be reduced; however, it should be noted that a cost of over £1m for the financial year was expected.  In respect of the Capital Programme, the new Bingham Hub was out to tender, and there was progress with the Abbey Road development, with some positive signs of recovery.  It was noted that the Capital Programme was £38m, which equated to a significant sum of money to invest in the local economy.  Reference was made to the agreed repayment policy for the Arena, which would allow officers the flexibility to extend the repayment period if required.  The report highlighted the Council’s revised Transformation Policy, which included a savings target of £500k, based on efficiencies and increased income.  It was noted that if there was a second wave of Covid-19, the current budget gap of £422k could rise to £1.7m and it was vital that the situation continued to be monitored.  As expected, there had been an increase in demand for the Council’s Hardship Fund, with 2,293 claims in the last year, and this fund had provided much needed support to residents who were struggling financially.  This was an extremely difficult time for all local authorities, and it was important to acknowledge that this Council had and continued to be well managed with a healthy level of reserves, which in the short term had enabled it deal with this economic crisis, whilst still delivering its corporate objectives.  However, it was acknowledged that the Council could not be complacent; Government funding had been  ...  view the full minutes text for item 16