Issue - items at meetings - Medium Term Financial Plan

Report of Councillor P Parkin, Portfolio Holder for Finance

RESOLVED

(1) That Cabinet noted the outturn position in respect of the 2020/21 financial year.

(2) That Cabinet approved the carry-forward of revenue budgets, as detailed in Section 2.9 of the report, totalling £0.087M.

(3) That Cabinet approved the carry-forward of capital budgets, as detailed in Appendix 3 to the report, totalling £6.960M.

REASONS FOR DECISION - To highlight the effective budget management achieved during 2020-21, which enabled the Council to secure a favourable financial outturn position, despite the many challenges that it faced as a result of the Coronavirus (Covid-19) pandemic. To carry forward unused revenue and capital budgets.

OTHER OPTIONS CONSIDERED AND REJECTED - The financial outturn report for 2020/21 was primarily a factual report detailing the actual position compared to previously approved budgets. Consequently, there were no alternative options to be considered.

The allocation of resources to earmarked reserve accounts was undertaken in line with the Council’s policy and service delivery framework and in the light of the risks and issues facing the Council over the period of the current Medium Term Financial Plan (MTFP). If these risks do not materialise or are settled at a lower cost than anticipated then the earmarked reserves would be reassessed and returned to balances where appropriate.

Please note that this was not a Key Decision and so can be implemented with immediate effect by officers.

The report to Cabinet explained the outturn position for the 2020/21 financial year. Cabinet was asked to note the information and to agree that specific revenue and capital budgets be now carried forward.

Members were reminded of the financial challenges which the Council had faced during the year as a result of the Coronavirus (Covid-19) pandemic, and the impact of these on its budget. In this context, Cabinet was informed about the reduction in fees and charges received because of the temporary closure of leisure centres, as well as the reduced income from the Council’s MOT Testing and Commercial Waste Collection services.

Cabinet noted the financial assistance which the Council had received during 2020-21. In particular, Members heard that the Council received £1.440M in Covid Response grant funding during the year. This grant funding had helped ensure that services continue to be delivered. In addition, the Government had provided funding to compensate for a proportion of the reduced income received from fees and charges.

Members discussed the report. They welcomed the actions which had been taken to deal with the financial risks which had faced the Council during 2020/21. They also highlighted the challenging savings targets that would need to be made during the remaining years of the Medium Term Financial Plan.