Decision details

The Cabinet Member with the Resources Portfolio introduced the report of the Managing Director (previously circulated) providing an up-to-date forecast of the 2020/21 revenue budget outturn as part of the Council’s continuous financial management process.

The submitted report stated that it was the third revenue budget management report to Cabinet for 2020/21; the impact of Covid-19 on both expenditure and income levels was projected to be significant; to date the Government had provided a grant of £8.682m to assist with pressures; the Government announced a further package of support to help reimburse lost income and this additional funding was anticipated to be £2.681m this financial year; the Government also announced that it would fund 75 per cent of the 2020/21 collection fund deficit which was anticipated at £1.196m; and that should all funding come to fruition it was estimated that there would be a Covid-19 surplus for 2020/21 of £1.654m; and that it was proposed to create an earmarked Covid-19 reserve that would be used to fund the pressures that would undoubtedly continue into the next financial year and beyond.

Reference was also made to the budget rebasing exercise that had been undertaken following the outturn position which had returned £0.897m into general reserves; the year-end projection, taking into account the Covid-19 pressures, anticipated grants, the rebasing exercise and savings, showed an overall improvement in 2020/21 financial position of £2.943m; and to concerns for future years.

RESOLVED - (a)  That the financial position in the forecast revenue outturn for 2020/21, as detailed in the submitted report, be noted.

(b)  That the Covid-19 pressures and government grants received to date, as detailed in the submitted report, be noted.

(c)  That further regular reports be made to monitor progress and take prompt action if necessary.

(d)  That the earmarked Covid-19 reserve, as detailed in the submitted report, be approved.

(e)  That carry forwards requested, as detailed in the submitted report, be agreed.

REASONS - (a)  To continue effective management of resources.

(b)  To continue to deliver services to agreed levels.