Agenda item

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.     

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

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