Issue - meetings

To consider a report from the Portfolio Holder for Finance, Commercial & Capital Strategy.

Decision

(a) That the Senior Leadership Team’s forecast for Dorset Council’s revenue budget position at the end of Q3 and the change since Q2 be noted;

(b) That Cabinet notes the proposals to improve the position during the year and considered further action to address the budget gap;

(c)  That the latest position on the capital programme and the impact this was having on capital financing in the revenue budget be noted as set out in appendix 1 of the report;

(d) That the current positions on collection funds and collection rates and the impact that the council tax position in particular might have on local preceptors be noted.  Also that  Government consultation on support for local tax losses in 2020/21 be noted;

(f)  That Cabinet notes the impact that Spending Review 2020 (SR20) has had on the expectations for the year.  It was noted that the impact on the budget strategy and medium-term financial plan (MTFP) were covered in a separate report on the agenda.

Reason for the decision

The Council has responsibilities to deliver against its 2020/21 revenue budget and capital programme whilst maintaining adequate reserves.  Cabinet wishes to understand clearly the financial impact and consequences of the Council’s response to the Covid-19 pandemic as well as other matters affecting the financial performance and position.

The Portfolio Holder for Finance, Commercial and Capital presented a report setting out the financial impact of Covid-19 and other matters on the current year’s financial performance.  It was likely that there would be a shortfall of 18 million pounds in the council’s budget. This was largely due to the significant additional resources for services delivered to the community because of Covid-19 and the considerable fall in income generation. 

The Chairman of the People & Health Scrutiny Committees confirmed that performance management and budget monitoring training had been arranged for a date in the near future and all scrutiny members were encourages to attend.

Decision

(a) That the Senior Leadership Team’s forecast for Dorset Council’s revenue budget position at the end of Q3 and the change since Q2 be noted;

(b) That Cabinet notes the proposals to improve the position during the year and considered further action to address the budget gap;

(c)  That the latest position on the capital programme and the impact this was having on capital financing in the revenue budget be noted as set out in appendix 1 of the report;

(d) That the current positions on collection funds and collection rates and the impact that the council tax position in particular might have on local preceptors be noted.  Also that  Government consultation on support for local tax losses in 2020/21 be noted;

(f)  That Cabinet notes the impact that Spending Review 2020 (SR20) has had on the expectations for the year.  It was noted that the impact on the budget strategy and medium-term financial plan (MTFP) were covered in a separate report on the agenda.

Reason for the decision

The Council has responsibilities to deliver against its 2020/21 revenue budget and capital programme whilst maintaining adequate reserves.  Cabinet wishes to understand clearly the financial impact and consequences of the Council’s response to the Covid-19 pandemic as well as other matters affecting the financial performance and position.