Agenda item

To consider a report of 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 quarter 2 and the improvement since quarter 1 be noted;

(b)       That Cabinet note the continuing impact that these changes could mean for the development of the 2021/22 budget strategy;

(c)        That Cabinet note the proposals to improve the position during the year and consider further action to address the budget gap;

(d)       That the latest position on the capital programme and the impact that this was having on capital financing in the revenue budget set out in appendix 1, be noted;

(e)       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;

(f)        (i)         That the grant allocation of £2.3m from the Department for Education (DfE) for the Priority Schools Building Programme 2 (PSPB2) project at The Woodroffe School, Lyme Regis be accepted and the Executive Director for People – Children with the Executive Director for Corporate Development be authorised to sign the grant agreement form;

(ii)  That subject to signature of the grant agreement, for Dorset Council to Commit to Construct, authority be delegated to the Executive Director People - Children’s in consultation with the Portfolio Holder for Peoples Children Education Skills and Early Help and the Executive Director for Corporate Development to enter into contract(s) on best terms achievable, provided the project was within budget.

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.

Understanding the current year’s position and performance is also key to developing the medium-term financial plan (MTFP) and budget strategy.

The Portfolio Holder for Finance, Commercial and Capital Strategy reminded members that the Q1 forecast a budget gap of 44 million. Since then this gap had now been reduced to 27 million. The Council continued to work hard to get the budget in the best possible position for the end of the year. 

The Portfolio Holder also reported that since the budget paper had been prepared a further 1.3 million of funding had been received from central government to support council services. With other additional further savings the current prediction of the budget gap had been reduced by a further 4 million pounds.

He further advised that the forthcoming COVID-19 lockdown did cause concern, but members would continue to be updated on the council’s financial position.

In response to a question regarding climate change and its implications, the Portfolio Holder advised that he was committed to the climate change strategy, however due to the current budget pressures he could not at the present time commit to what figure of funding would be included in next year’s budget for climate change.

In response to a questions regarding agency staff and their costs, the Portfolio Holder advised that this area was being targeted and he was working closely with other members of the Cabinet to achieve savings.

Decision

(a)       That the Senior Leadership Team’s forecast for Dorset Council’s revenue budget position at the end of quarter 2 and the improvement since quarter 1 be noted;

(b)       That Cabinet note the continuing impact that these changes could mean for the development of the 2021/22 budget strategy;

(c)        That Cabinet note the proposals to improve the position during the year and consider further action to address the budget gap;

(d)       That the latest position on the capital programme and the impact that this was having on capital financing in the revenue budget set out in appendix 1, be noted;

(e)       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;

(f)        (i)         That the grant allocation of £2.3m from the Department for Education (DfE) for the Priority Schools Building Programme 2 (PSPB2) project at The Woodroffe School, Lyme Regis be accepted and the Executive Director for People – Children with the Executive Director for Corporate Development be authorised to sign the grant agreement form;

(ii)  That subject to signature of the grant agreement, for Dorset Council to Commit to Construct, authority be delegated to the Executive Director People - Children’s in consultation with the Portfolio Holder for Peoples Children Education Skills and Early Help and the Executive Director for Corporate Development to enter into contract(s) on best terms achievable, provided the project was within budget.

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.

Understanding the current year’s position and performance is also key to developing the medium-term financial plan (MTFP) and budget strategy.