Issue - meetings

Financial Impact of Covid-19

Meeting: 21/07/2020 - Council (Item 7.)

Financial Impact of Covid-19

The material relevant to this item can be found on pages 5-13 of the Cabinet agenda pack for 7 July 2020.

 

The following recommendations were made to Council:

 

                      I.         That the minimum level of reserves be reduced to £4m.

                    II.         That up to £8,070,000 be released from reserves to address the in-year impact of the pandemic.

                   III.         That the Council should work towards achieving a balanced budget over the next 5 years, using reserves in the intervening years to help balance the budget.

                  IV.         That officers continue to pursue income generating initiatives, where there is a sufficiently robust business case, as part of the recovery process.


Meeting: 07/07/2020 - Cabinet (Item 16)

16 Financial Impact of Covid-19 pdf icon PDF 87 KB

The Cabinet is requested to consider the report and make the following recommendations to Council:

 

                      I.         That the minimum level of reserves be reduced to £4m.

                    II.         That £8,070,000 be released from reserves to address the in-year impact of the pandemic.

                   III.         That the Council should work towards achieving a balanced budget over the next 5 years, using reserves in the intervening years to help balance the budget.

Additional documents:

Decision:

*RECOMMENDED TO COUNCIL:

 

                      I.         That the minimum level of reserves be reduced to £4m.

                    II.         That up to £8,070,000 be released from reserves to address the in-year impact of the pandemic.

                   III.         That the Council should work towards achieving a balanced budget over the next 5 years, using reserves in the intervening years to help balance the budget.

                  IV.         That officers continue to pursue income generating initiatives, where there is a sufficiently robust business case, as part of the recovery process.

Minutes:

Cllr Wilding introduced the item. Cllr Dignum was then invited to outline the recommendations made by the Corporate Governance and Audit Committee which were as follows:

 

That the Corporate Governance and Audit Committee:

 

1)    Recommend to Cabinet that £8,070,000 be released from reserves to meet the in-year cost of the pandemic.

2)    Recommend to Cabinet that in the current circumstances the minimum level of reserves be reduced from £6.3m to £4m.

3)    Recommend to Cabinet that the Council should work towards achieving a balanced budget over the next 5 years, using reserves to help balance the intervening years.

4)    Recommend to Cabinet that the Council should prioritise the identification and development of new income generation ideas.

 

The Chair explained that recommendation 1 would be amended to read ‘up to £8 million’.

 

Cllr Wilding added that recommendation 4 from Corporate Governance and Audit Committee should be slightly reworded and then added to the Cabinet’s recommendations to Council. 

 

The Cabinet were supportive of the recommendations including the additions referenced above.

 

Mrs Shepherd clarified that the projects contained in the council’s Capital Programme have only been put on hold until the financial picture becomes clearer.

 

In a vote the Cabinet made the following recommendations to Council:

 

RECOMMENDED TO COUNCIL:

 

                      I.         That the minimum level of reserves be reduced to £4m.

                    II.         That up to £8,070,000 be released from reserves to address the in-year impact of the pandemic.

                   III.         That the Council should work towards achieving a balanced budget over the next 5 years, using reserves in the intervening years to help balance the budget.

                  IV.         That officers pursue income generating initiatives where robust business cases can be demonstrated.