Report of the Managing Director.
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 and informing Members of the budget rebasing exercise carried out following the 2019/20 outturn results.
The submitted report stated that it was the second 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 £7.174m to assist with pressures with a further £1.508m expected; on 2 July 2020 the Government announced a further package of support to help reimburse lost income and this additional funding was anticipated to be £4.095m this financial year; and that should all funding come to fruition it was estimated that the Covid-19 pressure for 2020/21 would be £0.875, which was significantly lower than anticipated in Quarter 1.
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 the Covid-19 pressures, anticipated grants, the rebasing exercise and savings, showed an overall improvement in 2020/21 of £1.43M; and to concerns for future years.
RESOLVED - (a) That the forecast revenue outturn for 2019/20, 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 proposed carry forward requests, as detailed in the submitted report, be agreed.
(e) That the transfer of £0.143m to the ICT earmarked reserve, as detailed in the submitted report, be approved.
REASONS - (a) To continue effective management of resources.
(b) To continue to deliver services to agreed levels.