Council and councillors

Report No: 141/2020

Cabinet noted the projected revenue outturn for 20/21 and the uncertainty that remains;

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

Councillor G Brown, as the relevant Cabinet Member elaborated on the report and thanked the Director of Resources, the Finance Manager and the rest of the team for their hard work producing the report in addition to the pressures they faced. He noted that there were business grants being processed and distributed.

It was noted that the forecast for year-end was similar that of Quarter 1. However, despite additional Government funding meeting some extra costs due to pandemic, concerns remained about funding in 2021/2022 and beyond. As reported at Quarter 1, the estimates depended critically on the length of time that the pandemic continued, the interventions put in place by the Government and the speed of subsequent economic recovery amongst other factors.

Councillor G Brown reported that the Medium Term Financial Plan (MTFP) was regularly updated to take account of key issues including government announcements, changes to assumptions etc. At Quarter 1, it was reported that a detailed review of all assumptions had been undertaken. As part of budget preparations the MTFP would shortly be reviewed.

The Director of Finance stated that the figures had changed frequently with the announcement of the second lockdown. He noted that staff resource and resilience was a concern and some limited resource were being brought in to support the additional workload and would be met from existing budgets.

Councillor Wilby commented that the Country was suffering the financial consequences of Covid. He thanked the Director for Resources and the Finance Team and further expressed his gratitude to Councillor G Brown for his dedication and diligence.

Councillor Walters congratulated the Director of Resources and the Senior Management Team and noted the unfortunate position other Councils were in.

With regards to the Government funding for lost income and additional cost he questioned whether this would cover costs it in their entirety.

In response, it was explained that Government funding had been received to cover costs but only time will tell whether this would be sufficient. The way the Government allocated the money was based on formula and whilst the funding has gone a long way to cover some costs it was unlikely to cover them all.

RESOLVED:

That the projected revenue outturn for 20/21 be noted and the uncertainty that remains;

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