Issue - meetings

** Please note that Appendix 3, Budget Planning Committee Comments, will follow after the Budget Planning Committee meeting on 18 August 2020 **

Report of Director of Finance

Purpose of report

This report proposes a revised budget for 2020/21 to reflect the financial impact of Covid 19 and includes proposed savings required in order to achieve a balanced budget

Recommendations

The meeting is recommended to:

 1.1         recommend that Council approve the savings as set out in Appendix 1.

1.2          recommend that Council approve a £1.2m use of the reserves as identified in Table 1.

1.3          recommend that Council approve the revised budget as set out in Table 1.

1.4          agree the revised fees and charges relating to Building Control Fees from 1 October 2020 as set out in Appendix 2.

1.5          delegate authority for the Director of Finance, in conjunction with the Finance Portfolio Holder, to carry out further virements between service budgets, Government grant income and reserves when actual sales, fees and charges income losses are known and when actual leisure costs are known.

Resolved

(1)           That Council be recommended to approve the savings as set out in the Annex to the Minutes (as set out in the Minute Book - Appendix 1 to the report).

(2)           That Full Council be recommended to a £1.2m use of the reserves as set out in the Annex to the Minutes (as set out in the Minute Book – Table 1 in the report).

(3)           That Full Council be recommended to approve the revised budget as set out in the Annex to the Minutes (as set out in the Minute Book – Table 1 in the report).

(4)           That the revised fees and charges relating to Building Control Fees from 1 October 2020 as set out in the Annex to the Minutes (as set out in the Minute Book – Appendix 2 to the report).

(5)           That authority be delegated to the Director of Finance, in conjunction with the Finance Portfolio Holder, to carry out further virements between service budgets, Government grant income and reserves when actual sales, fees and charges income losses are known and when actual leisure costs are known.

The Director of Finance submitted a report which proposed a revised budget for 2020/21 to reflect the financial impact of Covid 19 and includes proposed savings required in order to achieve a balanced budget.

In introducing the report, the Lead Member for Financial Management and Governance commended all staff for their hard work in continuing to deliver services and support residents during the height of the Covid 19 pandemic and as restrictions were being eased.

The Lead Member for Financial Management and Governance explained that whilst the council was doing all it could to address the financial impact of Covid 19, the on-going lobbying of Government by Local Authority Leaders, the Local Government Association and District Councils Network for additional funding for local Government was supported.  

The Chairman referred to the comments submitted to Executive following the Budget Planning Committee’s scrutiny of the proposals at the Committee’s meeting of 18 August 2020 and thanked the Committee for their in-depth review and comments.

In response to a question from the Leader of the Labour Group seeking clarity with regards the vacant Community Warden post, the Lead Member for Wellbeing clarified that there were currently three Community Wardens. The one vacant post would not be recruited to this financial year to help achieve the required in-year savings.

Resolved

(1)           That Council be recommended to approve the savings as set out in the Annex to the Minutes (as set out in the Minute Book).

(2)           That Full Council be recommended to a £1.2m use of the reserves as set out in the Annex to the Minutes (as set out in the Minute Book).

(3)           That Full Council be recommended to approve the revised budget as set out in the Annex to the Minutes (as set out in the Minute Book).

(4)           That the revised fees and charges relating to Building Control Fees from 1 October 2020 as set out in the Annex to the Minutes (as set out in the Minute Book).

(5)           That authority be delegated to the Director of Finance, in conjunction with the Finance Portfolio Holder, to carry out further virements between service budgets, Government grant income and reserves when actual sales, fees and charges income losses are known and when actual leisure costs are known.

Reasons

It is recommended that the Executive approves an revised budget for 2020/21 in order to address the net increase in costs the Council faces as a result of Covid-19.  Formalising the net forecast underspend the Council has identified within its “Business as Usual” spend as well as further savings plus reflecting additional costs related to Covid-19 will ensure that service managers know the budget within which they are operating.  This will help the Council to control its costs for the remainder of the year.

Alternative options

Option 1: Do nothing

The Council has the option to do nothing and not introduce a revised budget.  However, this would mean that services are operating with budgets which do not reflect service delivery and would make  ...  view the full minutes text for item 39