Agenda item

Financial Management 2020/21 to 2023/24 and Framework for Change 2020 - Revenue and Capital Budget Update 2020/21 including the Financial Impact of COVID-19 on the 2020/21 Budget - December Update

Report of the Executive Director for Corporate Resources and Customer Services



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



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



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



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














the monitoring position of the Council’s capital programme to the end of October 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 Executive Director of Corporate Resources and Customer Services referred to the recent Government Spending Review Announcement and reported that Officers were working through the detail and as such would report back accordingly.


The Leader of the Council, Councillor Maher thanked all Finance Officers for their continued support and hard work.  


Decision Made:





in respect of the Revenue Budget:



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;












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, be noted;




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



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































in respect of the Capital Programme:



the spending profiles across financial years for the approved Capital Programme (paragraph 7.1.1 of the report) be noted;



the latest capital expenditure position as at 31 October 2020 of £10.600m (paragraph 7.2.1 of the report) with the latest full year forecast of £33.233m (paragraph 7.3.1 of the report) be noted;



















the explanations of variances to project budgets (paragraph 7.2.3 of the report) be noted;


the Council be recommended to approve the supplementary capital estimate of £0.352m for Ainsdale Coastal Gateway (paragraph 7.4 of the report);


the capital virement of £0.149m to the Bootle Strategic Acquisitions project from Council Wide Essential Maintenance (paragraph 7.5 of the report), be approved; 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.






Reasons for Decision:


To ensure Cabinet are informed of the forecast outturn position for the 2020/21 Revenue Budget as at the end of October 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:















Supporting documents: