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The Cabinet considered the
report of the Executive Director for Corporate Resources and
Customer Services that advised of:
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(1)
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the current estimated financial
impact of COVID-19 on the 2020/21 Budget;
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(2)
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the current forecast revenue
outturn position for the Council for 2020/21;
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(3)
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the current forecast on Council
Tax and Business Rates collection for 2020/21; and
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(4)
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the monitoring position of the
Council’s capital programme to the end of September 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.
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The Executive Director for
Corporate Resources and Customer Services highlighted the
significant pressure the Council continues to face in responding to
Covid-19. He referred to the scheme
that had been introduced by Central Government to cost share the
income losses being incurred by the Council from sales, fees and
charges. It was reported that the
Council would make three claims relating to 2020/2021 and explained
that the conditions criteria set out by Central Government for the
scheme and further changes made to the criteria had meant that the
Council would be required to fund the overall shortfall of
£9.3m due to now not meeting those conditions within
the amended criteria.
The Executive Director for
Corporate Resources and Customer Services drew Members attention to
the 2020/21 Medium Term Financial Plan and emphasised the
difficulty of forecasting due to the lack of clarity regarding the
Spending Review.
The Cabinet Member for
Regulation, Compliance and Corporate Services, Councillor Lappin
extended her appreciation to all the staff who were working
incredibly hard in such difficult circumstances.
Decision Made:
That:
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(A)
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in respect of the Revenue
Budget:
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(1)
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the current
estimated impact of COVID-19 on the 2020/21 Budget together with
the key issues that will influence the final position, be
noted;
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(2)
(3)
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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;
the Government
grant funding that has been received to support individuals and
businesses with the response to the pandemic, and which has been
distributed in accordance with central government guidance, and the
Liverpool City Region Hospitality and Leisure Support Grant which
is providing additional help to local businesses, be
noted;
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(4)
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the current
forecast revenue outturn position for 2020/21 be
noted;
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(5)
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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
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(B)
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in respect of the Capital
Budget:
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(1)
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the spending profiles across
financial years for the approved Capital Programme (paragraph 7.1.1
of the report) be noted;
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(2)
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the latest capital expenditure
position as at 30 September 2020 of £9.551m (paragraph 7.2.1
of the report) with the latest full year forecast of £39.388m
(paragraph 7.3.1 of the report) be noted;
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(3)
(4)
(5)
(6)
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the explanations of variances
to project budgets (paragraph 7.2.3 of the report) be
noted;
the
capital programme outputs to the end of September (paragraph 7.4 of
the report) be noted;
the Council be recommended to
approve the supplementary capital estimate of £1.2m for an
Essential Maintenance Programme at Dunes Splashworld, to be funded
from Council resources (paragraph 7.5 of the report);
and
the Executive Director of
Corporate Resources and Customer Services will manage capital
resources to ensure the capital programme remains fully funded and
that capital funding arrangements secure the maximum financial
benefit to the Council (paragraph 7.6.3 of the report), be
noted.
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(C)
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Reasons for Decision:
To ensure Cabinet are informed
of the forecast outturn position for the 2020/21 Revenue Budget as
at the end of September 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.
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