Agenda item

Peter Stuart, Head of Corporate Resources introduced the report.  He highlighted the current unprecedented financial situation for all councils.  He noted the forecast £2.9m overspend, following receipt of the first Government support grant, which was due to a loss of income and  additional costs including those for Leisure Services.  He confirmed the announcement of an additional Government funding scheme for the current year  to protect local authorities’ reserves, and that the Council would need to balance income and expenditure for the medium term.

The Leader commented that the Council’s budget is usually balanced during the year due to careful financial management and these are unusual circumstances with challenging decisions for the current and future years.

In response to the Leader’s question the Head of Corporate Resources gave a reassurance that the Council is still viable, with allocated and unallocated useable reserves to balance the deficit.  The Council is not contemplating issuing a Section 114 notice under the 1988 Local Government Finance Act.

The Deputy Leader noted that the summary in Appendix A  was based on the available information when the report was drafted. She commended the Council on quickly utilising resources to enable staff to work remotely so the Council could continue to provide key services during the pandemic. She confirmed her support of the recommendations.

The Cabinet Member for Community confirmed the additional funds for disabled facilities grants and he welcomed the additional payment to each family in receipt of  Council Tax Support.

The Cabinet Member for Environment and Service Delivery noted the negative impact of Covid-19 on the Council’s finances.  He highlighted the additional costs for the provision of Leisure Services.  He expressed that the projected costs for  the Leisure Service, of £520,000 to May 2021, would be an underestimate.

TheHead of Corporate Resources advised that this was an early estimate and any changes would be reported to Cabinet.

The Cabinet Member for Housing and Planning welcomed the grant for temporarily housing homeless people and confirmed that homelessness will continue to be a key focus for the Council.  He noted that funds had been allocated to provide additional temporary accommodation within the District.

The Cabinet Member for Economic Growth welcomed the additional disability grants and acknowledged the car parking income reduction.

The Cabinet Member for Housing and Planning expressed concern with developer completions of approved affordable housing.

The Leader took the Members to the recommendations contained in the report, which were agreed unanimously.

RESOLVED

Cabinet recommended to Council for approval:

(i)          that £357,996 grant income relating to Homeless Support Grant be transferred to Specific Reserves as detailed in paragraphs 25;

(ii)     that £5,483 grant income relating to Cold Weather Fund Payment Grant be transferred to Specific Reserve as detailed in paragraph 26;

(iii)    that £8,428 grant income relating to Local Authority Data Sharing Programme Grant be transferred to Specific Reserve as detailed in paragraph 27;

(iv)    that £34,629 grant income relating to Implementing Welfare Reform Grant be transferred to Specific Reserve as detailed in paragraph 28;

(v)     that £25,242 grant income relating to New Burdens Verify Earnings & Pensions Grant be transferred to Specific Reserve as detailed in paragraph 29;

(vi)    that £1,233 grant income relating to New Burdens Transparency code and £1,380 grant income relating to New Burdens Severe Disability Premium changes be transferred to Specific Reserve as detailed in paragraph 30;

(vii)   that £695,753 grant income relating to COVID 19 Council Tax Hardship Fund be transferred to Specific Reserve as detailed in paragraph 31;

(viii)   the variations to the Capital Programme contained in paragraph 38 in accordance with the Council’s Financial Procedure rule B3.