Agenda item

To consider the forecast outturn position of the year as at 31^st March 2021 based upon actual spending and income to 30^th June 2020.

Members are asked to note the financial impact of the coronavirus pandemic at paragraph 5 of the report.  In view of these exceptional times the revenue monitoring position is uncertain.

This report was considered by the Executive at its meeting on 11^th August and was recommended to Full Council.

Howard Hamilton-Smith presented a report to the Committee that had previously been presented to a meeting of the Executive on 11^th August 2020.

The report to the Executive had been to:

a)    Report to the Executive the forecast outturnposition for the year as at 31^st March 20201 based upon actual spending and income to 30^th June 2020; and

b)    To request that the Executive note the financial impact of the Coronavirus pandemic as detailed in paragraph 5 of the report.

The report had also advised the Executive that in view of the current exceptional times, the revenue monitoring position was uncertain.

The Executive had been requested to:

a)    Note the projected revenue budget forecast position of a net overspend of £2.7m, as summarised in table1 and detailed in Appendix 1; and

b)    Note that Officers were continuing to work on several options to mitigate the potential financial impact and bring forward options for decision as appropriate; and

c)    Note that the Council, along with other District Council`s and industry groups continue to lobby Central Government for additional funding; and

d)    Note that further income compensation is to be received.  Where these income losses are more than 5% of a Council`s planned income from sales, fees and charges, the government will cover them for 75p in every pound lost. Full details of this were outlined in paragraph 11 of the report.

It was reported that the Executive had also been recommended to seek approval from Full Council for:

The latest revised net budget of £15.693m (as shown in Table 1); and

The net transfers to earmarked reserves of £1.703m (as shown in Appendix 2).

Grounds for the above recommendations which were approved by the Executive were outlined within the report.

The Committee was advised that since publication of the report, further guidance had been received in relation to the central government support scheme and the Council would be able to claim £1.1m through the scheme which would reduce the net over spend to £1.6m.  Included within the £1.6m overspend was a £1.2m predicted deficit relating to business rates and council tax. 

The Committee was also advised that the government had recently announced that the deficits could be received over the following three financial years which would effectively reduce the underspend for 2021, to be funded this year to £0.4m which would be required to be met from reserves.

Councillor Tony Martin expressed concerns that the Council may become insolvent due to insufficient funds to cover reserves and incur unsustainable debts.

Haword Hmilton-Smith advised that the government had recently announced that a further £1 billion for Local Authorities would be made available and that details would be reported to future meeting and the situation would continue to be monitored throughout the year. 

Howard also reminded that assurance had also been received from the government for authorities placed in Tier 3 restriction; that it would ensure that there would be no budget deficit in the current financial year and that a legal budget would be able to be set in the following  year, which would reduce the deficit to 0.4 million which would be covered by reserves.

Councillor Bea Foster requested information in relation to the Community Recovery Strategy as Burnley had now been placed under Tier 3 restrictions.

Lukman Patel advised that the Economic Recovery Strategy was an item on the Special Executive meeting agenda scheduled on Monday, 26^th October 2020.  Lukman also advised that the Community Recovery Strategy required more time and detail and would be brought forward soon.   Lukman further advised that urgent key items of spend had been processed via the urgent decisions process.

Lukman also advised around current initiatives continued to protect the most vulnerable via the Burnley Together project which had remained open throughout the pandemic.  Burnley Together was continuing to work with official, voluntary and partner organisations to identify and proactively engage with the most vulnerable residents to ensure they had access to essential supplies such as medication, fuel, and flu vaccinations.  The Emergency Assistance Grant had also been invoked which had resulted in food for the most vulnerable.      

Lukman also confirmed that Council staff were also being offered the flu vaccination.  For staff working from home, a voucher had been issued which could be used at a pharmacy of choice.

Councillor Foster also referred to page 42 of the report (Green Spaces and Amenities) which stated that a salary saving of £16k would be made in relation to the post of Community Engagement Ranger because the position was not going to be replaced.  Councillor Foster stressed the importance of the position of Community Engagement Ranger because it ensured that face to face relationships with residents were maintained.  Councillor Foster also stressed the value and importance of local parks during the current situation and requested that the role of Community Engagement Ranger be maintained.

IT WAS AGREED

That the report be noted.