Issue - meetings

To enable the Committee to review the report of the Corporate Finance and Governance portfolio holder to Cabinet in relation to the updated financial forecast and proposed budget position for 2021/22.

The Committee received the details submitted to the Cabinet on 18 December 2020 in relation to the updated financial forecast and proposed budget position for 2021/22.  In particular, the Committee was advised as follows:

·                     A ‘live’ 10-year forecast was maintained and reported to Members throughout the year.

·                     The 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.

·                     As part of maintaining a ‘live’ forecast, this report ‘built’ on the last position that was presented to Cabinet on 13 November 2020.

·                     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 is also worth highlighting that the managed position in terms of reserves continued to enable the Council to respond to exceptional events such as the COVID 19 crisis.

·                     At this stage of the budget process, there was a net deficit of £1.647m forecast 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.

·                     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.

·                     At the time of finalising this report, the Local Government Finance Settlement for 2021/22 had yet to be announced. They would be included in the figures that would be presented to Cabinet in January 2021 when it considered its final budget proposals for recommending to Full Council in February 2021. The budget included a council tax levy increase of £5, with this level of increase expected to be confirmed as allowable as part of the finance settlement announcements. No revenue support grant had been included in the budget for 2021/22, but similarly to the late announcement last year, the Government could provide some funding again next year, especially when reflecting on the financial impact of COVID 19 on Local Authorities.

·                     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 in the budget setting process.

In addition to the above, the Committee was advised of the following in respect of reserves, provisions and one-off sums for specific projects: