Agenda item

The Leader introduced the report, summarised the content and put on record his thanks to the organisations across the spectrum, at every level, in delivering the budget to such a small margin of error at the end of this financial year.

The Cabinet Member for Adult Services commented that some attention should be paid to the large amount of bad debt that had been accumulating from self-funding pickups and although in the past this has sometimes been written off, had now become a significant figure on the books. The Cabinet Member confirmed he was working with the Director of People to work up a new model to respond to these cost pressures as in the medium term the situation was not sustainable for the Council.

The Cabinet Member stated that Covid-19 had, had a volatile effect on financial markets but the Council’s pension scheme had benefited from the equity protection insurance it had taken out and over the last three years had improved to be slightly ahead of where it would be expected to be and the pension fund currently sat at 91% full funding.

In response to a query about additional business rates income, the Leader reported that there had been a bonus through business rates, which he suggested would be put into risk reserves. In the meantime, the Government was being lobbied by local authorities to establish an income guarantee fund to address the impact of the Covid-19 pandemic. This would ensure that any loss of income on the collection fund would be met by Government.

The Leader referred to the CCN report which highlighted the lower levels of income projected Council Tax and Business Rates receipts and reiterated that if an Income Guarantee was set up by Government it would enable the Council to draw on this money rather than fall upon the preceptors in the next financial year. He also reported that currently in terms of the immediate financial situation the Council had received more grant than it had spent

It was noted that in paragraph 78 on page 40 of the report the amount claimed was omitted from reference to claims on CCGs and NHS England.  The Chief Financial Officer advised this figure should be £1.6million. 

The Leader was asked about preparations for a potential second wave of the coronavirus.  He responded that the Bronze, Silver and Gold structures would be retained while continuing with the testing regime and bringing the Board forward to manage any local outbreaks.  The Local Outbreak Plan the Council would submit to Government would set out how the response to any spikes would be managed.  The Leader reiterated with regard to the potential fall off in business rates and rise in unemployment or necessity for council tax support for residents, Members of Parliament had written to Government to make the case for an Income Guarantee Fund.

RESOLVED that Cabinet:

a)    endorsed financial performance for the year ending 31 March 2020 and the unaudited Annual Financial Report and Statement of Accounts 2019/20;

b)   approved updates to earmarked reserves and general balances as detailed in paragraphs 51 to 59 of the report,

c)    Considered the draft Annual Governance Statement for 2019/20 for comment before final approval was sought from the Audit and Governance Committee; and

d)   Noted the emerging financial issues for the Council with regard to 202021 as a result of the COVOID-19 pandemic.