Issue - meetings

Report of the Corporate Director (Resources, Environment and Cultural Services) on how the Council’s finances have been impacted by Covid-19.

(1)     Cabinet noted the estimated financial impact outlined in the report and is subject to change as the government makes further policy announcements.

(2)     Cabinet noted the budget setting and business plan review timetable as set out in the report.

Report of the Corporate Director (Resources, Environment and Cultural Services) on how the Council’s finances have been impacted by Covid-19.

(1)       The Decision Taken

RESOLVED:

(1)  Cabinet noted the estimated financial impact outlined in the report and is subject to change as the government makes further policy announcements.

(2)  Cabinet noted the budget setting and business plan review timetable as set out in the report.

(2)       Reasons for the Decision

An earlier estimate was provided to Cabinet in May 2020, and to Full Council on 20 July.  Since then, the Council have been able to analyse the first quarter outturn reports for both the General Fund and HRA, which were presented in separate items.

The Council’s strong financial position means that we had so far been able to absorb the impact of the pandemic without having to make budget cuts to front-line services, or to capital programme.  A result of which should be proud of.

The revised negative impact upon the General Fund now stands at £4.8M.  From this should be deducted £1.5M of government grant support received, producing a net predicted impact of £3.3M.

Of the estimated £3.3M impact, £1.3M is forecast to impact upon the 2020/21 financial year and this is reflected in the outturn report.  £2.0 million, relating to predicted shortfalls of Council tax and business rates, will be accounted for via the collection fund, and will impact upon the 2021/22 financial year and beyond.

For the HRA, the estimated impact has come down from £1.8M to £0.5M.  This positive movement is a result of Ministry of Housing, Communities and Local Government (MHCLG) extending the deadline for the remittance of Right to Buy receipts.

All these figures will be refined as the Council monitor outturns each quarter and begin to review the MTFS and commence the 2020/21 budget process.  More government help is, as indicated, possible, through the income guarantee.