Issue - meetings

This report includes 2020/21 budget monitoring information for the end of September 2020 and progress made over the autumn in closing the MTFP budget gap for 2021/22 and future years.

The projection for the 2020/21 revenue account is a balanced position after Covid-19 pressures, mitigation action and other budget variances are reflected. The pressures due to the pandemic have grown since the November report with further government support also received. The drawdown of resilience reserves to balance the year is projected at £0.6 million.

The updated 2020/21 annual projections for reserve movements, the capital programme and housing revenue account (HRA) are also included in the report.

Financial planning has progressed over the autumn with the aim of closing the previously identified budget gap for next year of £13.4 million. This report provides the progress made in updating the MTFP, including the refinement of pressures, savings, and assumptions based on the latest information available. The current plan is showing a residual gap to close for next year of £10.3 million. Work is now progressing to establish final proposals to enable a balanced and lawful budget for 2021/22 to be set in February 2021.     

RESOLVED that Cabinet:-

(a)         Note the current budget position for 2020/21;

(b)         Approve £310,000 of additional investment expenditure within children’s services to support the service improvement plan during 2020/21 as set out in paragraph 32;

(c)         Approve the application of £365,000 additional investment during 2020/21 in the new administrations 100-day plan as set out in paragraph 73;

(d)         Note an additional £350,000 investment in the transformation programme to support development of smarter staff structures;

(e)         Note the additional £251,000 investment in the Estates and Accommodation Project in 2020/21 as approved by Council on the 24 November 2020;

(f)          Approve capital virements as set out in paragraph 107; 

(g)         Note progress made in developing a balanced, robust and lawful budget for 2021/22; and

(h)         Approve the continuation of the current Local Council Tax Support Scheme (LCTSS) into 2021/22 as set out on paragraphs 148 to 150.

RECOMMENDED that Council:-

a)           Approve the capital virement as set out in paragraph 108;

b)           Approve the refinancing of £4.8 million historic infrastructure spending via CIL and S106 funds to support the 2021/22 budget position as referenced in paragraphs 140 to 142 and Appendix D1; and

c)           Approve the Discretionary Business Rates Relief policy of BCP Council as set out in paragraphs 151 to 155 and appendix E.

Voting: Unanimous

Portfolio Holder: Finance and Transformation

Reason

·           To comply with accounting codes of practice and best practice which requires Councils to regularly monitor the annual budget position and have a rolling multi-year MTFP.

·          To provide and update on progress of the financial strategy to support the delivery of a balanced budget for 2021/22.

The Leader presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'G' to these Minutes in the Minute Book.

Cabinet was informed that this report includes 2020/21 budget monitoring information for the end of September 2020 and progress made over the autumn in closing the MTFP budget gap for 2021/22 and future years.

In relation to this Cabinet was advised that the projection for the 2020/21 revenue account is a balanced position after Covid-19 pressures, mitigation action and other budget variances are reflected. The pressures due to the pandemic have grown since the November report with further government support also received. The drawdown of resilience reserves to balance the year is projected at £0.6 million.

Further to this Cabinet was informed that the updated 2020/21 annual projections for reserve movements, the capital programme and housing revenue account (HRA) are also included in the report.

Cabinet was advised that financial planning had progressed over the autumn with the aim of closing the previously identified budget gap for next year of £13.4 million, and that this report provided the progress made in updating the MTFP, including the refinement of pressures, savings, and assumptions based on the latest information available, and that furthermore the current plan is showing a residual gap to close for next year of £10.3 million. Cabinet was informed that work is now progressing to establish final proposals to enable a balanced and lawful budget for 2021/22 to be set in February 2021.    

Councillor George Farquhar addressed the Cabinet advising that he was pleased that the whole council was backing children’s services.

RESOLVED that Cabinet:-

(a)         Note the current budget position for 2020/21;

(b)         Approve £310,000 of additional investment expenditure within children’s services to support the service improvement plan during 2020/21 as set out in paragraph 32;

(c)         Approve the application of £365,000 additional investment during 2020/21 in the new administrations 100-day plan as set out in paragraph 73;

(d)         Note an additional £350,000 investment in the transformation programme to support development of smarter staff structures;

(e)         Note the additional £251,000 investment in the Estates and Accommodation Project in 2020/21 as approved by Council on the 24 November 2020;

(f)          Approve capital virements as set out in paragraph 107; 

(g)         Note progress made in developing a balanced, robust and lawful budget for 2021/22; and

(h)         Approve the continuation of the current Local Council Tax Support Scheme (LCTSS) into 2021/22 as set out on paragraphs 148 to 150.

RECOMMENDED that Council:-

a)           Approve the capital virement as set out in paragraph 108;

b)           Approve the refinancing of £4.8 million historic infrastructure spending via CIL and S106 funds to support the 2021/22 budget position as referenced in paragraphs 140 to 142 and Appendix D1; and

c)           Approve the Discretionary Business Rates Relief policy of BCP Council as set out in paragraphs 151 to 155 and appendix E.

Voting: Unanimous

Portfolio Holder: Finance and Transformation