Issue - meetings

2020/21 Budget Monitoring & MTFP Update

Meeting: 11/11/2020 - Cabinet (Item 254)

254 2020/21 Budget Monitoring & Medium-Term Financial Plan (MTFP) Update pdf icon PDF 1 MB

This report includes 2020/21 budget monitoring information as at the end of August 2020 and an updated MTFP.

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 June report, partially offset by further government support announced on 2 July. This includes significant funding to replace a proportion of lost sales, fees and charges.

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

Financial planning is an iterative process with the latest refresh of the MTFP extended to cover the period 2021/22 to 2023/24 included in the report. The plan is based on the most recent information available and a set of assumptions that will need to be refined through the autumn. The current plan is showing a funding gap to close for next year of £13.4 million with the financial strategy setting out the process that the council will now adopt to be able to set a balanced and lawful budget for 2021/22.     

Additional documents:

Decision:

RESOLVED that Cabinet:-

a)           Notes the current budget position for 2020/21;

b)           Notes progress made in refreshing the MTFP and the key financial planning assumptions as set out in Appendix D2 and D3;

c)           Accepts the grant awarded for additional revenue and capital expenditure as set out in paragraph 86.  

d)           Approves the financial strategy as referenced in paragraphs 125 to 138 and as set out in Appendix D4

e)           Notes the actions of the report and the requests for future reports from both the Corporate Director for Children’s and the Chief Executive; and

f)            Requests the Corporate Director for Transformation to bring forward a report outlining how £15 million of ongoing Transformation savings will be achieved in 2021/22.

RECOMMENDED that Council:-

(a)         Requests that the Audit and Governance Committee review the financial regulations and consider whether new provisions are required for larger scale budget management actions taken by officers; and 

(b)         Approve the revenue and capital virements as set out in paragraphs 32 and 109.

Voting: Unanimous

Portfolio Holder: Leader of the Council

Reasons

·           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 present a proposed financial strategy to support the delivery of a balanced budget for 2020/21.

·          To ensure the financial regulations remain fit for purpose

Minutes:

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 were advised that this report included 2020/21 budget monitoring information as at the end of August 2020 and an updated MTFP.

In relation to this Cabinet were advised that the projection for the 2020/21 revenue account was 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 June report, partially offset by further government support announced on 2 July. Cabinet were informed that this included significant funding to replace a proportion of lost sales, fees and charges, and that the updated 2020/21 projections for reserve movements, the capital programme and housing revenue account (HRA) were also included.

Cabinet were further advised that financial planning was an iterative process with the latest refresh of the MTFP extended to cover the period 2021/22 to 2023/24 included in the report, and that theplan was based on the most recent information available and a set of assumptions that will need to be refined through the autumn. In relation to this it was reported that the current plan is showing a funding gap to close for next year of £13.4 million with the financial strategy setting out the process that the council will now adopt to be able to set a balanced and lawful budget for 2021/22.    

RESOLVED that Cabinet:-

a)           Notes the current budget position for 2020/21;

b)           Notes progress made in refreshing the MTFP and the key financial planning assumptions as set out in Appendix D2 and D3;

c)           Accepts the grant awarded for additional revenue and capital expenditure as set out in paragraph 86.  

d)           Approves the financial strategy as referenced in paragraphs 125 to 138 and as set out in Appendix D4

e)           Notes the actions of the report and the requests for future reports from both the Corporate Director for Children’s and the Chief Executive; and

f)            Requests the Corporate Director for Transformation to bring forward a report outlining how £15 million of ongoing Transformation savings will be achieved in 2021/22.

RECOMMENDED that Council:-

(a)         Requests that the Audit and Governance Committee review the financial regulations and consider whether new provisions are required for larger scale budget management actions taken by officers; and 

(b)         Approve the revenue and capital virements as set out in paragraphs 32 and 109.

Voting: Unanimous

Portfolio Holder: Leader of the Council

 


Meeting: 02/11/2020 - Overview and Scrutiny Board (Item 76)

76 Scrutiny of Finance Related Cabinet Reports pdf icon PDF 1 MB

To consider the following finance related reports scheduled for Cabinet consideration on 11 November 2020:

 

·       2020/21 Budget Monitoring and Medium-Term Financial Plan Update

 

The O&S Board is asked to scrutinise the reports and make recommendations to Cabinet as appropriate.

 

Cabinet member invited to attend for this item: Councillor Drew Mellor, Leader of the Council and Portfolio Holder for Finance and Transformation.

 

The Cabinet report is attached for consideration by the Overview and Scrutiny Board.

Additional documents:

Minutes:

Medium Term Financial Plan (MTFP) Report - The Leader of the Council and Portfolio Holder for Transformation and Finance introduced the report, a copy of which had been circulated and which appears as Appendix ‘G’ to the Cabinet minutes of 11 November in the Minute Book. A number of issues were raised by the Board in the subsequent discussion, including:

 

·       A Board Member asked whether the £3.8 million - tranche 4 funding referenced in the report was the same funding of £3 million which the Leader of the Council referenced in his Twitter feed regarding the programme of food parcels being delivered over half term for those entitled to free school meals. The Leader confirmed that this was the case and that some of the funding had been used for the provision of meals during the half term holiday. The Leader commented that central government had been clear that local authorities were best placed to understand local needs.

·       In response to an enquiry regarding what provision had been removed in order to fund free holiday meals it was explained that nothing had as yet, and needs were changing frequently as to where the funding would be best spent. In response to a further question the Board was advised that the funding wasn’t ringfenced and spending it in this way was no different to any other way of spending Covid funding. It was noted that funding of under £100k could be agreed by officers and other material spends were recorded in the MTFP report to Cabinet. In response to how much was actually allocated the Board were informed that there were approximately 6000 children entitled to free school meals in the BCP area and each food parcel cost £15, so a maximum of approximately £90k. The take-up over half term was good but not full and there was work underway on how to promote the provision for the Christmas holidays. The Chief Financial Officer advised that the in-year financial position of BCP Council Covid-19 grant allocation was outlined within the report.

·       A Councillor asked about the change in review from £50m to £13.4m large swing and whether that included any sale of assets or whether that was later consideration. The Leader advised that there would be no sale of assets to fund black holes in Corona Virus impacted budgets, but the Council was looking at more creative ways of using assets.

·       A Board member noted that funds previously received from central government had been inadequate to meet requirements leaving the council with a significant Covid funding hole. There was concern about the funding required to support the provision of free meals during the holidays and asked if the Council would be proactively contacting families in advance of the Christmas holidays. The Leader of the Leader of the Council stated that feeding children was a priority and confirmed that the programme at Christmas would be done in consultation with schools and businesses.

·       It was noted that the number of children engaged  ...  view the full minutes text for item 76