Agenda item

To enable Cabinet to consider the updated financial forecast and proposed position for 2020/21 for consultation with the Resources and Services Overview and Scrutiny Committee.

RESOLVED that Cabinet:

a)       approves the updated Financial Forecast and proposed position for 2020/21, as set out in the report and its appendices; and

b)       requests the Resources and Services Overview and Scrutiny Committee’s formal comments on this latest financial forecast and proposed position for 2020/21.

The Cabinet gave consideration to a detailed report of the Corporate Finance and Governance Portfolio Holder (A.2) which sought its approval for the updated financial forecast and proposed position for 2020/21 to go out for consultation with the Resources and Services Overview and Scrutiny Committee.

Members were advised that, as part of maintaining a ‘live’ forecast, further updates to the position for 2020/21 had been made since the financial forecast had been last considered by Cabinet at its meeting held on 8 November 2019.

It was reported that, at this stage of the budget process, there was a net deficit of £0.023mforecast in 2020/21, an overall change of £0.946m compared with the £0.969m deficit reported to Cabinet on 8 November 2019. Therefore the long term forecast remained on the right trajectory over the period it covered.

Cabinet’s attention was particularly drawn to the fact that the 2020/21 budget included an estimated collection fund surplus of £1.360m.Although this was an on-going item in the budget it was reviewed each year based on in-year collection performance and could therefore only be deemed as a one-off ‘saving’ in 2020/21. Although this amount was available to support the 2020/21 budget, if this was excluded from the forecast, there would be a budget deficit of £1.383m for 2020/21.

Members were informed that, although subject to potential changes to the forecast over the remaining budget setting period, the current forecasted deficit of £0.023m would be met by drawing money down from the forecast risk fund.

Cabinet was aware that the timing of the Local Government Finance Settlement had been disrupted this year due to the Parliamentary General Election and the date of the announcement remained unclear. However, given that the revenue support grant had been completely removed in 2020/21, the main remaining items of note would relate to the confirmation (or otherwise) of the Council’s ability to increase the level of Council Tax by a maximum of £5 along with other specific grant funding. Any changes emerging from the detailed Local Government Finance Settlement would be included in the figures that would be presented to Cabinet at its next meeting in January 2020 when it would consider its final budget proposals for recommendation to Full Council.

Cabinet was advised that, once the final position for 2020/21 was determined, the remaining years of the 10 year forecast would be revised, set against the revised 2020/21 position and would be reported to Members later in the budget setting process.

Having considered all of the information contained in the Portfolio Holder’s report and its appendices and in order to enable the Resources and Services Overview and Scrutiny Committee to be formally consulted as part of the budget setting process :-

It was moved by Councillor G V Guglielmi, seconded by Councillor Porter and:-

RESOLVED that Cabinet:

a)     approves the updated Financial Forecast and proposed position for 2020/21, as set out in the report and its appendices; and

b)     requests the Resources and Services Overview and Scrutiny Committee’s formal comments on this latest financial forecast and proposed position for 2020/21.