Agenda item

Cabinet Member: Cabinet Member for Finance

Forward Plan Ref: 2020/091

Contact: Hannah Doney, Head of Corporate Finance Tel: 07584 174654

Report by Director of Finance (CA10).

The report is the first financial monitoring report of the 2020/21 financial year.  It builds on the ‘Estimated Impact of Covid-19 April 2020 to June 2020’ report which formed annex D of the Business Management Report to Cabinet in May.  The report sets out the financial monitoring position as at 31 May 2020 including the impact of Covid-19.  The report also sets out the additional funding received to date to manage the financial pressures arising from Covid-19. 

The Cabinet is RECOMMENDED to:

(a)          note the contents of this report

(b)          to ask officers to identify plans to address the potential overspend in 2020/21 arising from COVID-19 and report back to the next meeting with recommendations for action.

Cabinet considered  the first financial monitoring report of the 2020/21 financial year, together with an addenda setting out additional information.  The report built on the ‘Estimated Impact of Covid-19 April 2020 to June 2020’ report which formed annex D of the Business Management Report to Cabinet in May.  The report set out the financial monitoring position as at 31 May 2020 including the impact of Covid-19.  The report also set out the additional funding received to date to manage the financial pressures arising from Covid-19. 

Councillor Glynis Phillips, Shadow Cabinet member for Finance thanked the finance team for all their additional work. It was important to remember the work of the back room staff alongside the front line workers who together had made such a positive contribution during this time of crisis. The report highlighted the ongoing uncertainty of the Council finances in this and future years. Whilst there were additional grants which were welcomed they came with conditions with increasing central government control. The report highlighted the estimated £20m funding gap and that  the council needed to start planning for ways to meet this gap. Councillor Phillips noted the recommendations for officers to identify palns to address the potential overspend  and the unusual step of a meeting in August to consider the way forward. Urge Council to meet to explore every possibility of meeting this shortfall before agreeing to even more cuts to services.

Councillor David Bartholomew, Cabinet Member for Finance responded to the the points made by Councillor Phillips. In particular he commented on her remarks around central government control, that central government by its very nature would have a centralised view and the Council was aware that local government must always shout to ensure its voice was heard because we know the local issues in far more detail. Councillor Bartholomew added that in terms of the support received by this Council, whilst always wanting more the support received so far had been satisfactory and there was more to come. Councillor Bartholomew, in response to Councillor Phillips final point gave an assurance that Cabinet would be exploring all opportunities to meet the shortfall without austerity.

Councillor Liz Brighouse, Chairman of Performance Scrutiny Committee, referred to the emergency Cabinet meeting on 18 August and the role played by the Performance Scrutiny Committee in the budget process. Councillor Brighouse hoped that Performance Scrutiny Committee would get the opportunity to consider any future revised budget. Lorna Baxter, Director of Finance confirmed that a meeting of Performance Scrutiny Committee would be scheduled prior to the Cabinet meeting.

Councillor Bartholomew commented that the meeting of Cabinet on 18 August was an extraordinary meeting rather than an emergency meeting. It was right and proper for Cabinet to make a considered and measured response  to the situation.

Councillor Bartholomew introduced the contents of the report and addenda

RESOLVED:             to:

(a)          note the contents of the report and addenda;

(b)          ask officers to identify plans to address the potential overspend in 2020/21 arising from COVID-19 and report back to the next meeting with recommendations for action.