Issue - meetings

(a)That the potential impacts of Covid 19 on the budget for 2020/21 and the Medium Term Financial Plan be noted.

(b)That authority be given to Heads of Service to agree the deferment of any business related fees and charges where a business can demonstrate that payment would cause immediate financial hardship.

Councillor Williamson submitted a report on the impact of Covid 19 on the Council’s finances. 

Councillor Williamson said he was bringing this report before the Executive, in view of the severe impact of the measures needed to combat the virus.  The report set out the position as at the end of April, and addressed the short and medium term range of impacts. 

Councillor Williamson said the report addressed the budget for 2020/21, the medium term financial plan and the Council’s cash position and level of reserves. 

He set out the position regarding the fall in the Council’s income in relation to the 2020/21 budget.  The budget relied on income from fees and charges.  The shortfall against budget for income in April was approximately £800,000. There were concerns about some items which could cause higher losses, such as loss of income from the trade waste service, a reduction in interest rates on investments and reduced income from Millstream investments.

Councillor Williamson went on to describe some costs savings, although these were limited.  He referred to measures which had been taken such as a short term loan made to Everyone Active to cover their payroll while the Government furlough scheme was established; and amendments to the waste service.  Arrangements had been made to defer rent from commercial tenants, for either the current quarter or the next quarter.  In summary, the range of income losses for the 2020/21 budget could be between £2.9 million and £4.5 million, although as grant funding of approximately £1.5 million had been provided by the Government, the net increase of use of reserves would be between £1.4 million and £3 million.

Councillor Williamson then referred to the medium term financial plan.  He said that when setting the 2020/21 budget, the saving proposals and additional income generation plans had closed the budget gap for this year but there was still a budget gap for 2021/22 of £420,000. Additional income generation plans from improved recycling rates and additional trade waste customers were unlikely to be realised in the short term.  One of the key plans for income generation had been for pay and display, and officers were now re-mapping the timings for a decision on the parking strategy. 

Councillor Williamson drew Members’ attention to the impact of Covid 19 on council tax.  Government support had been received for working age claimants receiving a council tax reduction, which was welcomed, but the prospect of increased unemployment was a concern.  Any increase in council tax support cases would reduce the taxbase.  The report set out the assumptions made regarding the council tax income which would be needed in the MTFP for 2021/22. 

Councillor Williamson referred to the conclusion in the report, in that it was not possible to give credible overall estimates of the impact of the Covid-19 situation on the MTFP, and that new ideas to reduce net expenditure would be needed to replace or supplement existing plans. 

Councillor Williamson referred to the cash and reserves position.  He said  ...  view the full minutes text for item 36