Agenda item

Revenue and Capital Budget Update 2020/21 including the Financial Impact of COVID-19 on the 2020/21 Budget

Report of the Executive Director of Corporate Resources and Customer Services

Minutes:

The Cabinet considered the report of the Executive Director - Corporate Resources and Customer Services that advised of:

 

(1)

the current estimated financial impact of COVID-19 on the 2020/21 Budget;

 

(2)

the current forecast revenue outturn position for the Council for 2020/21;

 

(3)

the current forecast on Council Tax and Business Rates collection for 2020/21; and

 

(4)

the monitoring position of the Council’s capital programme to the end of July 2020 relating to:

 

  • the forecast expenditure to year end;
  • variations against the approved budgets and an explanation of those variations for consideration by Members;
  • updates to spending profiles and proposed amendments to capital budgets necessary to ensure the efficient delivery of capital projects are also presented for approval.

 

 

The Cabinet Member for Regulation, Compliance and Corporate Services, Councillor Lappin extended her appreciation to all staff concerned who have worked hard to protect the residents of Sefton.

 

Both the Leader of the Council, Councillor Maher and  Councillor Lappin highlighted the importance of continuing to lobby the Government regarding the funding that was promised to Local Councils to support the ongoing extra costs of the Covid-19 pandemic. 

 

Decision Made:

 

That:

 

(A)

in respect of the Revenue Budget:

 

(1)

the current estimated impact of COVID-19 on the 2020/21 Budget together with the key issues that will influence the final position; and that further government guidance is awaited on the additional support that will be provided to the Council which will inform the Council’s strategy for delivering financial sustainability be noted;

 

(2)

the financial risks associated with the delivery of the 2020/21 revenue budget and the material variations that are to be expected to the current estimates contained in the report be recognised, and it be agreed that subsequent reports provide updates and where appropriate remedial action plans as appropriate;

 

 

(3)

the government grant funding that has been received and that has been used to support the response to the pandemic and which has been distributed in accordance with central government guidance be noted;

 

(4)

the current forecast revenue outturn position for 2020/21 be noted; and

 

 

(5)

It be acknowledged that the forecast outturn position will continue to be reviewed to ensure a balanced forecast outturn position and financial sustainability can be achieved; and

 

(B)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in respect of the Capital Budget:

 

(1)

the spending profiles across financial years for the approved Capital Programme (paragraph 6.1 of the report) be noted;

 

(2)

the latest capital expenditure position as at 31 July 2020 of £3.869m (paragraph 6.2.1 of the report) with the latest full year forecast of £35.930m (paragraph 6.3.1 of the report) be noted;

 

(3)

the explanations of variances to project budgets (paragraph 6.2.3 of the report) be noted;

 

(4)

It be noted that capital resources will be managed by the Executive Director - Corporate Resources and Customer Services to ensure the capital programme remains fully funded and that capital funding arrangements secure the maximum financial benefit to the Council (paragraph 6.4 of the report); and

 

(5)

That in relation to Grant Funding the offer of £969,724 Adult Education Budget funding available to Sefton Council, ring-fenced for the delivery of adult community learning provision for residents aged over 19 be noted and accepted.

(C)

 

 

Reasons for Decision:

 

To ensure Cabinet are informed of the forecast outturn position for the 2020/21 Revenue Budget as at the end of July 2020, including delivery of a remedial action plan, and to provide an updated forecast of the outturn position regarding the collection of Council Tax and Business Rates. 

 

To keep Members informed of the progress of the Capital Programme against the profiled budget for 2019/20 and agreed allocations for future years.

 

To progress any changes that are required in order to maintain a relevant and accurate budget profile necessary for effective monitoring of the Capital Programme.

 

To approve any updates to funding resources so that they can be applied to capital schemes in the delivery of the Council’s overall capital strategy.

 

Alternative Options Considered and Rejected:

 

None.

 

 

 

 

 

 

Supporting documents: