Issue - meetings

2021/22 Budget Targets and Finance Update

Meeting: 22/09/2020 - Strategy and Resources Committee (Item 31)

31 2021/22 Budget Targets and Finance Update pdf icon PDF 68 KB

This report recommends budget targets for 2020/21 and provides an update on financial planning as recommended by Financial Policy Panel.

Additional documents:

Decision:

Following consideration, it was resolved that the Committee:

1.    Noted the recommendations of Financial Policy Panel held on 08 September 2020.

2.    Agreed the following overall budget targets for 2021/22:-

     i.        That estimates be prepared including the delivery of savings already identified in the Financial Plan for 2021/22 totalling £336,000.

    ii.        That estimates include options to reduce organisational costs by £1,290,000 subject to government grant announcement, in order to minimise the use of working balances and maintain a minimum working balance of £2.5 million in accordance with the medium term financial strategy.

  iii.        That at least £210,000 additional revenue is generated from an increase in discretionary fees and charges;

  iv.        That a provision for pay award is made of £408,000 that would allow for a 2% cost of living increase;

    v.        That a £950,000 contingency is provided for within the 2021/22 budget to mitigate the potential impact of Covid-19 on the Council’s finances in 2021/22.

  vi.        That officers are tasked in delivering a list of costed options that can be implemented to address any budget shortfall for 2021/22.

3.    Agreed the budget reporting timetable as set out in section 10 of the report to Financial Policy Panel (Appendix 2).

4.    Agreed that 2020/21’s projected deficit be funded as set-out at paragraph 6.7 of the report to Financial Policy Panel (Appendix 2).

 

Minutes:

The Committee received a report recommending budget targets for 2020/21 and providing an update on financial planning as recommended by the Financial Policy Panel.

The following matters were considered:

a)            Impact of Covid-19 on the Council’s finances. Following a question from a Member, the Chief Finance Officer informed the Committee that it was difficult to forecast the likely overall impact of Covid-19 on the Council’s finances. The Bank of England’s forecast of 9.5% reduction in GDP for the year had been used as a base for estimations.

b)           Wells site. Following a question from a Member, the Chief Finance Officer informed the Committee that any future development of the Wells site was not included within the figures presented by this report.

Following consideration, it was resolved unanimously that the Committee:

1.    Noted the recommendations of Financial Policy Panel held on 08 September 2020.

2.    Agreed the following overall budget targets for 2021/22:-

     i.        That estimates be prepared including the delivery of savings already identified in the Financial Plan for 2021/22 totalling £336,000.

    ii.        That estimates include options to reduce organisational costs by £1,290,000 subject to government grant announcement, in order to minimise the use of working balances and maintain a minimum working balance of £2.5 million in accordance with the medium term financial strategy.

  iii.        That at least £210,000 additional revenue is generated from an increase in discretionary fees and charges;

  iv.        That a provision for pay award is made of £408,000 that would allow for a 2% cost of living increase;

    v.        That a £950,000 contingency is provided for within the 2021/22 budget to mitigate the potential impact of Covid-19 on the Council’s finances in 2021/22.

  vi.        That officers are tasked in delivering a list of costed options that can be implemented to address any budget shortfall for 2021/22.

3.    Agreed the budget reporting timetable as set out in section 10 of the report to Financial Policy Panel (Appendix 2).

4.    Agreed that 2020/21’s projected deficit be funded as set-out at paragraph 6.7 of the report to Financial Policy Panel (Appendix 2).