Issue - meetings

To consider a report of the Portfolio Holder for Finance, Commercial and Capital Strategy.

Decision

(a)       That the updated cost pressures set out in the paper of 6 October 2020 and the validation work that has been carried out on these, be noted;

(b)       That the amendments to the planning assumptions used in the Medium Term Financial Plan (MTFP), be noted;

(c)        That the financial gap arising from (i) and (ii) above, be noted;

(d)       Cabinet notes the tactical and transformation savings set out in the paper to start to close the financial gap, recognising that these are work in progress;

(f)        That the Portfolio Holders work with officers to continue to identify and develop savings opportunities through tactical or transformational means;

(h)       Cabinet continues to make the case to Government for additional funding given the unprecedented financial consequences of Covid-19;

(i)         That Cabinet agrees the next steps leading up to the 2021/22 Budget being presented to full Council in February 2021.

Reason for Decision

Councils are required to set a balanced budget.  Essentially this means that expenditure is balanced by income without unsustainable use of one-off, or short-term sources of finance. 

This paper is coming to Cabinet to provide an update on the budget gap for 2021-22 and subsequent years and progress on action/savings to date. The paper proposes an approach to close the remaining gap.

The Portfolio Holder for Finance, Commercial and Capital Strategy set out the report that provided a framework for the budget for 2021/2022 and the MTFP for 2021-2026. He also outlined the work that would be undertaken during the autumn and winter in order that the budget could be finalised at Council in February 2021.

Dorset Council was facing a budget shortfall of more than £60m before grants and reliefs from Government reduce the net impact of this to around £35m. At this stage, the continuing impact of Covid-19 on council  services and finances was unclear, but officers were working with the best assumptions and information available.

Without further funding from Government, the Council would use significant

quantities of its own reserves this year; this would place additional strain on the future resilience and potentially leave the Council unable to fund changes in demand-led services in future. The Leader of the Council would continue to raise these concerns with central government. 

In response to a question regarding fully funding the action plan of the Climate and Ecology Emergency Strategy, the Portfolio Holder advised that assurance could not be given at this stage that all project could be fully funded in their entirety .  However, the council was committed to responding to climate change and many actions were already in progress as the council worked towards reducing its carbon footprint. 

Decision

(a)       That the updated cost pressures set out in the paper of 6 October 2020 and the validation work that has been carried out on these, be noted;

(b)       That the amendments to the planning assumptions used in the Medium Term Financial Plan (MTFP), be noted;

(c)        That the financial gap arising from (i) and (ii) above, be noted;

(d)       Cabinet notes the tactical and transformation savings set out in the paper to start to close the financial gap, recognising that these are work in progress;

(f)        That the Portfolio Holders work with officers to continue to identify and develop savings opportunities through tactical or transformational means;

(h)       Cabinet continues to make the case to Government for additional funding given the unprecedented financial consequences of Covid-19;

(i)         That Cabinet agrees the next steps leading up to the 2021/22 Budget being presented to full Council in February 2021.

Reason for Decision

Councils are required to set a balanced budget.  Essentially this means that expenditure is balanced by income without unsustainable use of one-off, or short-term sources of finance. 

This paper is coming to Cabinet to provide an update on the budget gap for 2021-22 and subsequent years and progress on action/savings to date. The paper proposes an approach to close the remaining gap.