Decision Maker: Cabinet Member for Finance, Innovation and Property
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: Yes
(Report of Director of Finance and Transformation)
The report set out information on the three key budget areas of salaries, major operational income streams and investment income. Performance of the key budget areas, together with approved variations to the revenue budget and areas identified through revenue budget monitoring, were summarised to provide an indicative overall budget position for the year.
Details of the impact of the Covid-19 pandemic on the Borough Council’s finances to the end of June and projected for the year 2020/21; the scale of the potential longer term impact on the Medium Term Financial Strategy and Savings and Transformation Strategy and, in turn, savings and transformation contributions required to balance the budget, were also set out.
Finally, updates on capital expenditure and variations that had been agreed in relation to the capital plan were provided.
Following consideration by the Finance, Innovation and Property Advisory Board, the Cabinet Member for Finance, Innovation and Property resolved that:
(1) The likelihood that the Covid-19 pandemic would have a significant adverse impact on the Council’s finances and reserve balances and as a result, in turn, on the scale and timing of the savings and transformation contributions required be noted;
(2) the decision made by Cabinet to impose an ‘essential spend only’ policy for 2020/21 in order to preserve resources and to set a ‘savings target’ of £500,000 to be delivered as a result of this policy be noted;
(3) the decision made by Cabinet that the general revenue reserve balance should not fall below £2m at any point during the MTFS 10-year period and to retain a minimum of £3m by the end of the period be noted;
(4) the decision made by Cabinet in light of the difficult financial landscape that lays ahead to set a savings target of £100,000 to be delivered by April 2021 followed by a further £100,000 by April 2022 be noted;
(5) the need to not only deliver any new targets, but to also deliver on the ‘outstanding’ decisions made prior to the Covid-19 pandemic and factored into the MTFS be noted;
(6) the intention to bring a draft revision of the Savings and Transformation Strategy to Cabinet in the Autumn be noted; and
(7) the financial challenge was such that financial sustainability was at increased risk be noted.
Publication date: 24/07/2020
Date of decision: 22/07/2020
Decided at meeting: 22/07/2020 - Finance, Innovation and Property Advisory Board
Effective from: 01/08/2020