Issue - meetings

Medium Term Financial Outlook

Meeting: 20/07/2020 - Cabinet (Item 16)

16 Medium Term Financial Outlook pdf icon PDF 253 KB

This report outlines the financial position of the Council and seeks approval for the proposed budget setting strategy for 2021/22.

Additional documents:

Decision:

Cabinet RESOLVED to:

 

(1)    note the contents of the report and the potential financial impact on the Councils Medium Term Financial Strategy.

 

(2)    agree the budget setting process for 2021/22, including the approach to consultation and scrutiny, as set out in section five of the report.

 

(3)    confirm the intention, as previously announced and subject to consultation and any other material changes to circumstances, to increase council tax by 3.99% in 2021/22.

 

(4)    note the Capital budgets and agree the proposed 2019/20 capital budget carry forwards and capital virements, as  set out in section six of the report.

Minutes:

Councillor McLennan (Deputy Leader and Lead Member for Resources) introduced the report which set out the medium term financial outlook for the authority in light of the challenges, risks and uncertainties as a result of the spending related to COVID-19. Cabinet were informed that the budget set in February for 2020-2023 would need to be reviewed in light of the financial measures necessitated to tackle COVID-19.  The impact on the Council’s overall financial position as a result of Covid-19 had generated additional pressures estimated at £47 million. Three tranches of government funding worth £21.8 million had been received, leaving a shortfall to be addressed alongside the further additional pressures that were continuing to emerge. 

 

As a result, Cabinet were informed that the Authority were starting to plan in order to mitigate these impacts identified, in both the short to medium term..

 

In concluding her introduction Councillor McLennan regretted the position and highlighted the need for the Council to develop a response that continued to maintain a commitment to strong financial resilience and sustainability given the significance of the financial challenges faces but also recognised the prudent approach adopted by the Council in management of its budget to date.

 

Councillor Muhammed Butt, Leader of the Council, acknowledged that the process would be difficult. The authority would continue to capture all costs associated with the response to COVID and were expecting that government would keep their commitment to reimburse local authorities for all expenses. Cabinet committed to continue to lobby London Councils and the London General Assembly to this end.

 

It was RESOLVED that Cabinet

 

(1)          note the contents of the report and the potential financial impact on the Councils Medium Term Financial Strategy.

 

(2)          agree the budget setting process for 2021/22, including the approach to consultation and scrutiny, as set out in section five of this report.

 

(3)          confirm their intention, as previously announced and subject to consultation and any other material changes to circumstances, to increase council tax by 3.99% in 2021/22.

 

(4)          note the Capital budgets and agree the proposed 2019/20 capital budget carry forwards and capital virements, as set out in section six of the report.