Issue - meetings

The purpose of the report is to advise Cabinet of the financial impacts to the Council to the end of May; and then to begin to outline the scale of the potential longer term impact of the Covid-19 pandemic, in broad terms, on the Council’s finances, the Medium Term Financial Strategy and Savings and Transformation Strategy and, in turn, savings and transformation contributions required to balance the budget.

(Report of Director of Finance and Transformation)

The report advised of the financial impacts to the Council to the end of May, outlined the scale of the potential longer term impact of the Covid-19 pandemic, in broad terms, on the Council’s finances, the Medium Term Financial Strategy and the Savings and Transformation Strategy and, in turn, savings and transformation contributions required to balance the budget.

The Cabinet resolved that:

(1)             the spend and income foregone as a result of Covid-19 as at end of May and as set out in the report be noted;

(2)             the target of £500,000 to be saved during 2020/21 from appropriate budgets in relation to the ‘essential spend only’ policy be approved and Management Team be requested to continuously monitor this during the year;

(3)             the imperative to continue to progress the savings initiatives as soon as practically possible for which decisions were made prior to the pandemic be noted;

(4)             the range of potential financial impacts forecast for the end of the financial year 2020/21 be noted;

(5)             lobbying for additional grant payments from government to assist with the unprecedented financial impacts be continued;

(6)             it be agreed that the general revenue reserve balance should not drop below £2m at any point in the MTFS 10-year period as the Council recovers from the pandemic and that a minimum level of £3m be returned by the end of the period;

(7)             indicative savings targets of £100,000 to be achieved by April 2021 and £100,000 to be achieved by April 2022 be set in order to protect the Council’s financial position;

(8)             it be noted that the Covid-19 pandemic will, in all likelihood, have a significant impact on the Council’s reserve balances and as a result, in turn, have an adverse impact on the scale and timing of the savings and transformation contributions required;

(9)             the scale of the financial challenge, such that financial sustainability is at risk, be noted; and

(10)          Management Team be asked to bring a draft revision of the Savings and Transformation Strategy to Cabinet in the Autumn.

Decision Notice D200038CAB