Decisions

Cabinet recognise a net revenue forecast deficit at month 5 of £7.42m, an improvement of £2.95m from month 2, with some £6.19m of the deficit directly associated with the extraordinary financial pressures attached to COVID-19.

Cabinet continue to make strong representations to Welsh Government for full

reimbursement of £6.19m leaving Council with a reduced sum of £1.23m to address as a true in-year pressure and resulting from in-year savings secured to date.

That an additional £675k of identified expenditure currently within the month 5 revenue forecast is recognised as eligible expenditure to be funded from capital receipts under the flexible use of capital receipts directive, reducing the £1.23m in year pressure to £555k.

That the remaining forecast deficit of £555k is managed through cost reduction and in taking immediate steps to curtail non-essential expenditure, recognising the risk that targeted and planned cost reductions will be challenging in the current operating environment and given that the Council will as always look to minimise impact on service delivery.

Cabinet agrees that the 2019/20 year-end one-off headroom added to the Council Fund of £1.8m is used to mitigate any under recovery of the £6.19m COVID-19 pressures from Welsh Government alongside responding to the potential significant financial pressures brought about by the pandemic or otherwise in the current year or over the medium term.

In taking the approach set out above, Cabinet recognises the extraordinary nature of the current year and accepts that significant pressures will need to be incorporated into the budget setting process for financial year 2021/22 unless otherwise mitigated.

Cabinet notes the extent of movements in reserve usage contained in Appendix 1

That the intended budget recovery plan signalled following the early month 2 forecast deficit against budget of £3.54m relating to non-COVID-19 items is suspended given the £2.31m improvement in the non-COVID-19 pressures identified in the interim period and outlined in this report.

Cabinet considers the forecast capital outturn spend of £34.95m alongside significant slippage of £26.3m, and the presumptions made around the 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.

That the budget assumptions outlined in paragraphs 3.15 to 3.21 in the report are agreed and updated during the budget process should better information become available.

That the budget process and timetable as outlined in paragraph 3.29 is adopted and that includes member budget scrutiny and consultation conducted through all-member seminars, Member and Officer Working Groups, Community Engagement, Select, and Consultation meetings (for Business Rate purposes).

Resolved to agree the recommendations of the report

Approved the extension of Public Spaces Protection Orders in respect of Bailey Park, Abergavenny; Abergavenny Lower and Monmouth Town in Monmouthshire.

The three PSPOs which are due to expire 20th October 2020, be extended for a further three years to 20th October 2023.