Issue - meetings

This report sets out the current forecast of income and expenditure against the revenue budget for 2020/21 and other key financial data.

Cabinet RESOLVED to note the overall financial position as set out within the Q3 monitoring update and the actions being taken to manage the issues arising.

Councillor McLennan, as Deputy Leader and Lead Member for Resources, introduced the report setting out the current forecast of income and expenditure versus the revenue budget for 2020/21 and other key financial data.

Members noted that total pressures for the year amounted to £36.9 million.  This included significant additional Covid-19 related pressures identified for both the 2019/20 and 2020/21 financial years.  Whilst this position had been partially offset by the remaining tranches of emergency government grant funding, compensation for lost fees and service Covid-19 related underspends the current net overspend was currently projected at £8 million.  This included the pressures identified in relation to Covid-19 as well as the General Fund and DSG.  Members were advised that the figures in the report were more difficult to forecast than at any similar point in previous years due to uncertainty around the severity of the pandemic during the winter period.  It was also noted that whilst the forecast had included updated and prudent projections following the announcement of the second national lockdown the position continued to remain unclear in relation to what was expected to follow this period.

Whilst noting the work being undertaken to address and mitigate the pressures identified, members remained keen to maintain pressure on the Government to ensure the necessary level of funding support was provided.

In supporting the recommendation contained in the report, members were mindful of the difficult and challenging nature of the Council’s budget position but thanked officers and members for their hard work throughout the pandemic to ensure services had continued to operate effectively and to mitigate the ongoing financial impact of the pandemic.

RESOLVED that Cabinet note the overall financial position as set out within the Q3 monitoring update and the actions being taken to manage the issues arising.