The Director of Finance will submit a report (Document “CA”) that sets out the financial envelope for the Council to deliver its key priorities as set out in the revised Corporate Plan.

Prior to Covid, the outlook for Council Finances looked significantly healthier than at any point since 2010. The impact of Covid-19 on Council services through additional expenditure and reducing income, coupled with the impact on the wider economy have now altered that outlook for the worse and have added a great deal of additional uncertainty. Additional pressures on Childrens Social Care, the impact of Brexit, and delays to Government reforms of Local Government finance also add further pressures and uncertainties.

The revised forecast identifies for planning purposes a financial gap of £47.9m in 2021-22, reducing to c£42.3m in 2022/23.

Seperately, the report also recommends approval of immediate funding in 2020/21 for the expansion of the Local Test and Trace service. The £1.6m of funding to derive from £300k of remaining Test & Trace Grant, £380k of Public Health Grant, with the remainder deriving from Council Financial resources in leiu of any additional Government Funding.

The report also recommends approval of immediate funding in 2020/21 for the delivery of the Care Home Resilience plan

Recommended –

(1)       That having considered the Medium Term Financial Strategy as an assessment of the Council’s financial outlook to 2023/24 , and a framework for it to remain financially viable and deliver sustainable public services, in line with its priorities, that Executive recommends the updated and revised Medium Term Financial Strategy at Appendix 1 to Document “CA”.

(2)       That the Executive approve the investment of £1.6m into the expansion of the Local Test & Trace service as outlined in Appendix 2 to Document “CA” Option 2. The £1.6m of funding to derive from £300k of remaining Test & Trace Grant, £380k of Public Health Grant, with the remainder deriving from Council Financial resources in leiu of any additional Government Funding.

(3)       That the Executive approve the investment of £264k to enable the delivery of the Care Home Resilience Plan, to be funded from Council Financial resources in leiu of any additional Government Funding

Overview and Scrutiny Committee: Corporate

(Andrew Cross - 07870 386523)

The Director of Finance submitted a report (Document “CA”) that set out the financial envelope for the Council to deliver its key priorities as set out in the revised Corporate Plan.

Prior to Covid, the outlook for Council Finances looked significantly healthier than at any point since 2010. The impact of Covid-19 on Council services through additional expenditure and reducing income, coupled with the impact on the wider economy have now altered that outlook for the worse and have added a great deal of additional uncertainty. Additional pressures on Childrens Social Care, the impact of Brexit, and delays to Government reforms of Local Government finance also add further pressures and uncertainties.

The revised forecast identified for planning purposes a financial gap of £47.9m in 2021-22, reducing to c£42.3m in 2022/23.

Separately, the report also recommended approval of immediate funding in 2020/21 for the expansion of the Local Test and Trace service. The £1.6m of funding to derive from £300k of remaining Test & Trace Grant, £380k of Public Health Grant, with the remainder deriving from Council Financial resources in leiu of any additional Government Funding.

During the discussion , the Health and Wellbeing Portfolio Holder stated that support for Care Homes was crucial, especially as we headed into the winter months, there was an imperative that those in a care setting were not moved during this period ,and thus investment from central government was required to offset such issues.

The Leader stressed that protecting and preserving lives was a key priority during these unprecedented times.

In the area of Children’s Social Care, the Portfolio Holder stressed that demand was increasing, in line with trends seen nationally and that he expected referrals to increase as a consequence, and therefore it was important to maintain the levels of support, in order to safeguard children.

A Conservative Member was present at the meeting and stated that he acknowledged that these were difficult times for the Council’s finances, however he was confident any shortfalls in funding as a result of the pandemic would be met by Government.  He however queried was the line in the report relating to construction inflation as a consequence of Covid.  He also questioned the success of track and trace, and that it needed reviewing as a matter of urgency if it was going to deliver on the numbers.

The Leader stated that Government had left Councils in a very difficult situation and that the shortfall in funding as a consequence of Covid had to be bridged as a matter of urgency.  In relation to track and trace, the Leader commented that again this was a national government responsibility, however if resources were forthcoming a local track and trace would yield much better results as we would be in position to drive it.

The Director of Finance stated that no announcements had been made to date regarding how Government would meet the shortfall in funding as a result of the pandemic, and he also acknowledged that construction inflation was a factor built onto capital financing as a consequence of the current situation.

Resolved –

(1)       That having considered the Medium Term Financial Strategy as an      assessment of the Council’s financial outlook to 2023/24 , and a            framework for it to remain financially viable and deliver           sustainable public services, in line with its priorities, that             Executive notes the updated and revised Medium Term Financial            Strategy at Appendix 1 to Document “CA”.

(2)       That the investment of £1.6m into the expansion of the Local Test & Trace service as outlined in Appendix 2 to Document “CA” Option 2 be approved. The £1.6m of funding to derive from £300k of remaining Test & Trace Grant, £380k of Public Health Grant, with the remainder deriving from Council Financial resources in lieu of any additional Government Funding.

(3)       That the investment of £264k to enable the delivery of the Care Home Resilience Plan be approved, to be funded from Council Financial resources in lieu of any additional Government Funding.

ACTION: Director of Finance

Overview and Scrutiny Committee: Corporate