Agenda item

To enable the Cabinet to consider recommendations made by the Resources and Services Overview & Scrutiny Committee in relation to the above.

That –

(a)       the Resources and Services Overview & Scrutiny Committee be thanked for the work it has undertaken; and

(b)       Cabinet notes the comments raised by that Committee, which will be considered as part of associated activities going forward, together with the response of the Corporate Finance and Governance Portfolio Holder thereto.

Cabinet was aware that,at its meeting held on 22 June 2020 (Minute 62 referred), the Resources and Services Overview & Scrutiny Committee had been provided with an early update on the financial impact of COVID 19 on the Council’s in-year financial position and looked ahead to 2021/22 as part of the long term forecast.

It had been explained to that Committee that there had been various strands of work that had been undertaken, locally and nationally, along with numerous updates and guidance from the Government since the country had entered a period of ‘lock down’ from late March 2020.

In providing a high level narrative on the Council’s financial position to that Committee, information had been presented across the following headings:

(1)       A summary of the position at the end of April 2020 for significant Income Streams;

(2)       Impact on the Local Council Tax Support Scheme and Council Tax and Business Rate Collection Performance;

(3)       The Direct Financial Impact, including Expenditure and Income, as at the end of April 2020, with Estimates for May and June 2020; and

(4)       Cash Flow Implications.

Following discussion, it had been agreed by the Resources and Services Overview & Scrutiny Committee that it be recommended and commented to Cabinet that -

(a)       the hard work of Council staff, led by the Chief Executive, community groups, individual Members and individual members of the public locally to support the local communities across Tendring (and particularly those most in need) and sustain businesses with the available grants, be applauded and recognized; including the Council’s Finance and IT teams who created the system to pay those much needed grants at a swift pace.

(b)       within the allocation of £4,000,000 for cliff stabilisation work, a District wide survey is commissioned this year to identify the implications for the Council of works and thereby assist in the resource considerations of the Council over the long term.

(c)        the offer of the Portfolio Holder for Corporate Finance and Governance to include the Chairman of this Committee in an examination of the subject of Council House voids be welcomed.

Cabinet had before it the Corporate Finance and Governance Portfolio Holder’s response to the Resources and Services Overview & Scrutiny Committee’s recommendations which was as follows:-

“The Committee’s work is appreciated and I welcome their comments, especially those set out in point (a). It is at times like this that the strength of the Council and our local communities really shines through and I am happy echo and amplify the words of the Committee.

In respect of point (b), a lot of work is undertaken within the framework of the long term forecast in terms of keeping an eye on potential cost pressures that the Council faces, such as cliff stabilisation that the Committee refers to. Such considerations will continue to be an important element of the long term forecast in 2020/21 and beyond. In addition, the Council continues to support the approach of keeping work in-house wherever possible, which has already proved a success with the management of previous cliff stabilisation work that has been completed on time and within budget.

In respect of point (c), I will be requesting the latest update from officers following which I will make the necessary arrangements to review this information with the Chairman of the Committee.

Although 2020/21 will be a very challenging year for various reasons, from a financial perspective the Government have already provided significant funding to the Council along with committing to underwrite the risk of losses in income over the reminder of the year (up to 75% after the first 5%). A further financial update is due to be presented to Cabinet in October which will provide the latest in-year position, which is set against an improved position compared to earlier in the year given this on-going support from the Government. And finally, I will be looking to maximise the flexibility that the long term approach to the forecast was designed to do by exploring the option of relaxing the savings target for 2021/22 given the unprecedented position we face in 2020/21.”

Having considered the Resources and Services Overview & Scrutiny Committee’s recommendations and the response of the Corporate Finance and Governance Portfolio Holder thereto:

It was moved by Councillor G V Guglielmi, seconded by Councillor Stock OBE and –

RESOLVED that –

(a)    the Resources and Services Overview & Scrutiny Committee be thanked for the work it has undertaken; and

(b)    Cabinet notes the comments raised by that Committee, which will be considered as part of associated activities going forward, together with the response of the Corporate Finance and Governance Portfolio Holder thereto.