Issue - meetings

To enable Cabinet to consider the updated financial forecast and proposed position for 2021/22 for consultation with the Resources and Services Overview and Scrutiny Committee.

(THE PORTFOLIO HOLDER’S REPORT WILL BE “TO FOLLOW ON” IN DUE COURSE)

RESOLVED that Cabinet –

a)     approves the updated Financial Forecast and proposed position for 2021/22, as set out in item A.9 of the Report of the Corporate Finance & Governance Portfolio Holder and the Appendices attached thereto; and

b)        requests the Resources and Services Overview and Scrutiny Committee’s consideration of, and comments on, this latest financial forecast and proposed position for 2021/22.

The Cabinet gave consideration to a report of the Corporate Finance & Governance Portfolio Holder (A.9) which submitted the updated financial forecast and proposed budget position for 2021/22 for its consultation with the Resources and Services Overview and Scrutiny Committee.

Cabinet was aware that a ‘live’ 10-year forecast was maintained and reported to Members throughout the year and that he most up-to-date position in December each year was translated into the detailed budget for the following year for consultation with the Resources and Services Overview and Scrutiny Committee. Therefore, as part of maintaining a ‘live’ forecast, the Portfolio Holder’s report ‘built’ on the last position that had been presented to Cabinet on 13 November 2020.

It was reported that, despite the challenging financial and economic environment, confidence in the long term approach to the forecast remained, which was supported by the forecast risk fund. It was also noted that the managed position in terms of reserves continued to enable the Council to respond to exceptional events such as the COVID 19 crisis.

Members were informed that, at this stage of the budget process, there was a net deficit of £1.647mforecast in 2021/22, an improvement of £0.128m compared with the £1.775m deficit reported to Cabinet on 13 November 2020. Therefore, the forecast remained within the financial boundaries set out in the long-term plan.

Cabinet was advised that, although subject to potential changes over the remaining budget-setting period, the current forecasted deficit of £1.647m would be met by drawing money down from the forecast risk fund.

The Leader of the Council (Councillor Stock OBE) informed Members that the Local Government Finance Settlement for 2021/22 had been announced the previous day (17 December 2020). For Tendring, that Settlement had included:-

·           a Revenue Support Grant (RSG) of £400,000;

·           a New Homes Bonus (NHB) of £650,000; and

·           a permission to increase Council Tax by up to £5.

Those changes emerging from the settlement in relation to the RSG and the NHB would be included in the figures that would be presented to Cabinet in January 2021 when it considered its final budget proposals for recommendation to Full Council in February 2021. The budget already included a proposed council tax levy increase of £5.

It was reported that once the final position for 2021/22 was determined, the remaining years of the 10-year forecast would be revised, set against the budget position for 2021/22 and would be reported to Members later on in the budget setting process.

Having considered all of the information and advice contained in the Portfolio Holder’s report:-

It was moved by Councillor Stock OBE, seconded by Councillor McWilliams and:-

RESOLVED that Cabinet –

a)     approves the updated Financial Forecast and proposed position for 2021/22, as set out in item A.9 of the Report of the Corporate Finance & Governance Portfolio Holder and the Appendices attached thereto; and

b)     requests the Resources and Services Overview and Scrutiny Committee’s consideration of, and comments on, this latest financial forecast and proposed position for 2021/22.