Issue - meetings

Report of the Acting Shared Director of Finance

This report includes the Finance Digest which picks up the latest forecast of the impact of Covid 19 on the budget forecast for 2020/21.

that the Medium Term Financial Strategy be noted and the proposed immediate actions to be taken be endorsed.

Cabinet received a report of the Acting Shared Director of Finance which set out a prudent view of the impact of COVID-19 on the council’s finances.  It was noted that an amendment had been circulated in a later edition of the agenda due to further emergency COVID-19 funding being received from the government.

The Acting Shared Director of Finance explained the various sections contained in the Medium Term Financial Strategy.  The first table showed a   breakdown based on a 3-month lockdown.  It was too early to predict some impacts.  All government grants for businesses, the additional Council Tax Relief and the Retail and Hospitality sectors had been distributed.  She advised that the impact on council services was based on three months, after this time it was envisaged that some services would move back to normal working.

Following a question about further government grants to the council, particularly in response to the way the council managed the response to the pandemic, the Acting Shared Director of Finance advised that the council had received a thank you letter about its management of COVID-19 response.  If the lockdown continued for a longer period the government may agree to further grants, but it would not cover any loss of commercial income.

The final section of the strategy proposed a cautious approach towards expenditure.  The flowchart asked budget mangers to consider any proposed expenditure and if it could be delayed.  It was not proposing to stop priorities.

In response to a question from Councillor Bell about the reserves and how they could be replenished, the Acting Shared Director of Finance advised that the Economic Impact Reserve had done what it had been set up for originally.  The position should be clearer at the end of quarter one and officers would work on a way forward.

The country had been in an unusual position and it was rare for a government to stop the economy.

RESOLVED –

that the Medium Term Financial Strategy be noted and the proposed immediate actions to be taken be endorsed.