Issue - meetings

To consider the report of the Cabinet Member for Finance & Assets

RESOLVED

To note the changes in the Council’s financial position in 2021/22 and the medium-term.

REASON

The Council needs to acknowledge the effects of the local situation occasioned by the COVID-19 pandemic and the continued impact this is having on its financial position both in the short and medium-term. This has moved the Council from what has been a long-term healthy financial position to one with predicted deficits.  However, given the level of uncertainty in the projections, the economy and proposed Government action the report does not recommend direct action to reduce expenditure at this stage.

Councillor Clarke presented the report that gave an update on the Council’s financial position, on behalf of the Cabinet Member for Finance & Assets. 

He stated that the forecast for this financial year was favourable with £1m surplus predicted at Month 4, the main reason being that less expenditure was needed to support the Council’s leisure services than had been budgeted for.  Compared to the budget set in February, the current outlook for 2022-23 looked relatively balanced.

However, there was still a degree of uncertainty surrounding the economy as it emerged from the pandemic, with further uncertainty relating to central government funding levels and the ongoing impact of Brexit.  Areas of uncertainty included the outcome of business rates reform, a potential cap on what local authorities can charge for garden waste collection, and the introduction of food waste collections from 2023. 

The Council retained a high level of reserves, which will enable it to ride out the impact of these uncertainties, with the option of making changes if necessary.  All assumptions in the MTFS would continue to be reviewed and updated, with a further update to Cabinet in December, ahead of the budget being set for 2022-23 next February.

RESOLVED

To note the changes in the Council’s financial position in 2021/22 and the medium-term.

REASON

The Council needs to acknowledge the effects of the local situation occasioned by the COVID-19 pandemic and the continued impact this is having on its financial position both in the short and medium-term. This has moved the Council from what has been a long-term healthy financial position to one with predicted deficits.  However, given the level of uncertainty in the projections, the economy and proposed Government action the report does not recommend direct action to reduce expenditure at this stage.