Decision details

Cabinet recognise a net revenue forecast deficit of £10.37m with some £6.83 million of this directly associated with the extraordinary financial pressures attached to COVID-19.

Cabinet continue to make strong representations to Welsh Government for full

reimbursement of £6.83 million leaving Council with a sum of £3.54 million to address as a true in-year pressure.

An in-year budget recovery plan to address the forecast overspend of £3.54 million is drawn up for Cabinet consideration in September.

Cabinet notes the extent of movements in reserve usage contained in appendix 1.

Cabinet agrees that the 2019/20 year-end one-off surplus of £1.8 million be set against this year’s forecast pressure of £3.54 million leaving a residual sum of £1.74 million as a minimum to address by way of an in-year recovery plan.

In taking the approach set out in 2.5 above, Cabinet recognises the extraordinary nature of the current year and accepts that a further sum of £1.8 million will need to be found as part of the budget setting process for financial year 2021/22.

Cabinet considers the forecast capital outturn spend of £52.118m, introducing a £134k underspend, and the presumptions made around net financing consequences, as outlined in appendix 1.

Cabinet recognises that these numbers will have to be reconsidered in the event that Welsh Government falls short of expectation in compensating the Council or pressures such as pay award settlements are agreed at levels beyond our planning assumptions.