Decision details

That Cabinet recognises a net revenue forecast non-COVID surplus at month 9 of £142k that represents an improvement of £660k since month 7, primarily as a result of the positive action taken during the financial year in curtailing non-essential expenditure and through cost reductions.

That Cabinet requires senior officers to continue to bare down on all costs for the remainder of the year and wherever possible seek to take advantage of grant monies that materialise late in the year to further increase the year end surplus and in doing so afford Cabinet headroom for policy choice and that includes strengthening the Council’s limited reserve and useable capital receipt balances to meet future financial challenges.

That Cabinet can be reasonably assured based on continued dialogue with Welsh Government and funding received to date that all associated and eligible income losses and cost pressures will be funded noting:

a) A total net revenue forecast deficit at month 9 of £5.15m, an improvement of £1.28m from month 7 and inherent within which is a forecast deficit of £5.28m that is directly associated with the extraordinary financial pressures attached to COVID-19;

b) That since the budget forecasts have been produced for month 9 that Welsh Government has notified the Authority that a further sum of £2.02m will be made available to the Authority relating to claims made to the Hardship fund to cover additional expenditure incurred in December 2020 and income losses incurred during quarter 3 of the financial year, and that will in turn reduce the £5.28m COVID-19 related forecast deficit to £3.26m. A further £1.53m is also expected to be received for items claimed but not yet approved pending further clarification being provided to Welsh Government.

In taking the approach set out above, Cabinet recognises the extraordinary nature of the current year and accepts that significant recurring services pressures have been incorporated into the ongoing budget setting process for financial year 2021/22 unless otherwise mitigated.

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

Cabinet considers the forecast capital outturn spend of £22.38m alongside significant slippage of £40.45m, and the presumptions made around the financing consequences, as outlined in appendix 1.