Council and councillors

Report no: 108/2020

a)    Cabinet noted the projected outturn for 20/21 and the uncertainty that remains

b)    Cabinet noted the financial impact of COVID-19 on the Council’s finances and the risks that remain

c)    Cabinet noted the updated position on the Medium Term Financial Plan

Councillor G Brown, as the relevant Cabinet Member, explained that the report effectively replaces the Quarter 1 report and updates Cabinet Members with the current financial positon for 20/21 including an update on the MTFP taking into account COVID-19 and other risks. It was noted that the Government had generally supported and funded local government where Covid had affected them.  The report explained that funding was likely to meet short term costs but the position beyond 20/21 was unclear. There was an expectation that further costs may be incurred with a potential increase in Covid cases as students returned to school and the winter months’ kick in.

The Strategic Director of Resources commented that income losses would be compensated for and the report gives an initial view on the extent of compensation.  With the income loss form now having arrived, there were some issues to resolve. There was a necessity to determine what losses could be attributed to Covid. It was anticipated that the figures could be refined.  Looking ahead to 21/22 it was hoped that income levels would recover to pre-Covid levels but this would be reassessed in due course.

Cabinet Members thanked the work of the Strategic Director of Resources and his team and recognised that there would be a lot of hard work ahead

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RESOLVED:

a)    That the projected outturn for 20/21 and the uncertainty that remains be noted.

b)    That the financial impact of COVID-19 on the Council’s finances and the risks that remain be noted.

c)     That the updated position on the Medium Term Financial Plan be noted.