Issue - meetings

That the following be noted: 

1)        the significant financial impact of the Covid-19 crisis as illustrated in the Executive Summary and that any unfunded additional responsibilities falling on the Council as a result of any further lockdown measures are not included in the 2020/21 forecasts;

2)        the overall forecast of the current position of the General Fund revenue budget, Housing Revenue Account (HRA) and Dedicated Schools Grant (DSG) illustrated in the Executive Summary and appendices attached to the report;

3)        the recent announcement from the Prime Minister confirmed that there would be a further package of support for local government, of around £1 billion. Further details of this funding will be confirmed shortly. Any income and related expenditure from this is currently not factored in the figures in the report;

4)        that on 22 September, the Council were allocated £55k from Local Authority Compliance and Enforcement Grant. Any income and related expenditure from this is currently not factored in the figures in the report.

The Executive considered a report setting out the Revenue Budget position as at 30 September 2020.

The Executive Member for Finance and Housing introduced the report and highlighted the impact of Covid-19 on the General Fund balance which was shown as £12.431m as at 31 March 2020 and was now forecast to be £8.631m at 31 March 2021.  The the impact of Covid-19 on the Council’s General Fund balance was therefore £2.629m. 

Councillor Jorgensen highlighted untrue stories in the press about the Council having a large deficit and being financially unstable and queried what the Executive Member believed was a prudent level of reserves.  Councillor Kaiser felt that more than £7m was a prudent level although he would prefer a level of over £10m.  He advised that the Council was still working with the Government to try and gain additional support.  It was noted that the Council’s financial position could change if there was another lockdown and the Council was having to provide additional facilities, foods and services.

RESOLVED that the following be noted: 

1)        the significant financial impact of the Covid-19 crisis as illustrated in the Executive Summary and that any unfunded additional responsibilities falling on the Council as a result of any further lockdown measures are not included in the 2020/21 forecasts;

2)        the overall forecast of the current position of the General Fund revenue budget, Housing Revenue Account (HRA) and Dedicated Schools Grant (DSG) illustrated in the Executive Summary and appendices attached to the report;

3)        the recent announcement from the Prime Minister confirmed that there would be a further package of support for local government, of around £1 billion. Further details of this funding will be confirmed shortly. Any income and related expenditure from this is currently not factored in the figures in the report;

4)        that on 22 September, the Council were allocated £55k from Local Authority Compliance and Enforcement Grant. Any income and related expenditure from this is currently not factored in the figures in the report.