Decision details

The Executive RESOLVED to recommend to Council:

1.    That Council acknowledges the forecast variations from the 2020/21 general fund budget listed in annexe 1 and approves the mitigation measures set out in Annexe 2 including revisions to approved budgets, the cancellation of approved contributions to reserves and the drawing down of earmarked reserves.

2.    That in the event of additional government grant being secured and/or the overall projection set out in Annexe 1 being more favourable than forecast, the net budget surplus arising from this accrues to the business rate equalisation fund, property investment fund and working balance.

3.    That a full revision of the approved Medium Term Financial Plan is undertaken which will assess the adequacy of the contingency budget, consider the other options identified but not included at value at this stage, and the wider economic factors – to be reported to Council no later than its December meeting.

4.    That in relation to the Leisure Centre issues, the recommendations included in the Exempt Annexe be approved.

Reason: the annual budget is a major decision for the Council and setting a balanced budget is a statutory requirement. As a result of the sudden and unexpected need to review the 2020/21 budget in the light of the COVID-19 impact, the Council must act quickly to ensure the significant projected net budget shortfall is addressed so that the Council can continue to function. Pre-decision scrutiny of the revised budget proposals, as undertaken by the VFM O&S committee on 13 July, demonstrates democratic transparency and good governance.

[This matter has already been considered by the Value for Money & Customer Services Overview & Scrutiny Committee.]