Decision details

To provide Members with the latest financial monitoring information for the year relating to: the revenue budget, capital programme and income collection

Key Decision identified as 2020/21 Financial Monitoring Report in the Notice of Key Decisions published on 10 June 2020.

RESERVED FOR COUNCIL

Councillor R C Evans, Cabinet Member for Council Finance & Governance presented the report of the Director: Finance & HR, Chief Finance Officer.

Cabinet Members noted the significant impact of the coronavirus pandemic (Covid-19) on the country, which had impacted on the Council’s financial pressures. There were increased costs in relation to the provision of Social Care; the purchase of essential personal, protective equipment (PPE); income shortfall following the closure of facilities and services; and a projected shortfall in relation to Council Tax and Non Domestic Rates. The Council received £10.1m from the National Emergency Response Funding grant, Members noted the projected pressure was estimated to be around £20.7m. Cabinet Members also noted a projected £8m shortfall from business rates and council tax, which resulted in a residual pressure of around £18.6m.

Work was being undertaken to refine and update the pressures and identify mitigations, which would feed into the Mid-Year 2020/21 Service & Financial Planning Strategy.

There were a number of variations noted from the approved budget, as noted in the report. Members acknowledged that the majority of these were in relation to Covid-19.

The funding outlook for the medium term was still very uncertain. The Local Government Finance System changes had been deferred and funding levels for 2021/22 remained unclear. The one year Government ‘spending round’ was expected to be announced in the autumn.

The Capital programme totalled £94m which included all approvals since the budget had been set. Projected spend was 78.4% of the budget allocation.  The impact of Covid-19 would be closely monitored and projections updated once information became available. 

The Income monitoring position was noted; Covid-19 had significantly impacted on collection rates, with Business Rates, Council Tax and Sales Ledger all behind target. Debt recovery action had been suspended from March 2020, as part of a range of support provided to residents and businesses.

Cabinet Members discussed the impact Covid-19 had on the Borough, including the significant financial impact and urged central government to provide the promised financial support for local Councils. In response to a question from the Conservative Group Leader, the Leader stated that he would continue to work with the Borough’s two MPs to lobby for a fair deal for Telford and Wrekin.

RESOLVED –

(a)  that it be noted that the 2020/21 revenue budget position has been significantly impacted by the Covid-19 pandemic;

(b)  to RECOMMEND TO COUNCIL that delegation be granted to the Director: Finance & HR to, after consultation with the Cabinet Member for Council Finance & Governance, make changes to the Service & Financial Planning Strategy to reflect Covid-19 grants received and any associated spend;

(c)  the position in relation to capital spend be noted and to RECOMMEND TO COUNCIL it approves the changes to the capital programme as detailed in Appendix 3 of the report;

(d)  the collection rates for NNDR, council tax and sales ledger be noted