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 submitted to Cabinet on 3 December 2020

 

Minutes:

Further to Minute No. 72 of the meeting of the Cabinet held on 3 December 2020 the Committee considered the report of the Executive Director of 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 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 Cabinet had resolved (Minute No. 72) 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, 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 to support individuals and businesses with 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;

 

(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 Programme:

 

(1)

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

 

(2)

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;

 

(3)

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

 

(4)

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

(5)

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

 

(6)

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.

 

Members of the Committee asked questions/commented on the following issues:

 

·        The provision of emergency funding during the year and from Government and via the Local Government Finance Settlement to mitigate, due to the Covid pandemic, against the reduced collection of Council Tax / Business rate receipts, reductions in the receipt of fees and charges and additional costs incurred associated with the Council’s response to the pandemic. It was noted however that Government contributions did not cover the full losses / additional costs incurred and that the Council still had to find significant savings to meet the shortfall.  

 

RESOLVED:

 

That the financial monitoring report and the decision taken by Cabinet in respect of this matter be noted.

 

Supporting documents: