Issue - meetings

To consider a report by the Executive Director for Corporate Development.

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

Decision

(a)       That the outturn position for 2019/20 and the impact this had on reserves be noted;

(b)       That the Senior Leadership Team’s forecast for Dorset Council’s position at the end of Quarter 1 be noted;

(c)        That the position on the capital programme be noted and the projects recommend by officers (as set out in Appendix 1 of the report) be approved;

(d)       That the key milestones lifted from the draft timetable for budget/Medium Term Financial Plan (MTFP) for 2021/22 be agreed (as set out in Appendix 2 of the report);

(e)       That the inherited and revised draft budget assumptions to allow development of the first iteration of the five-year MTFP be noted (as set out in Appendix 3 of the report);

Reason for the Decision

The Council has responsibilities to deliver against its 2019-20 Revenue Budget and 2019-20 Capital Programme and maintain adequate reserves. These recommendations and accompanying report demonstrate the Council’s performance in delivering against these responsibilities.

Cabinet need to understand the significant financial impact and consequences of the Council’s response to the Covid-19 pandemic.

Understanding the financial position at the start of the planning process is key to adopting the most appropriate assumptions in the development of the MTFP.  Agreeing an initial set of assumptions will allow officers to develop the first iteration of the MTFP and budget for 2021/22 for consideration and conduct sensitivity testing.

Governance of the financial strategy will be critical as we build the next MTFP and agreeing key milestones for the work and member review/challenge are important at this stage to ensure maximum engagement.

The Portfolio Holder for Finance, Commercial and Assets presented the Council’s quarter 1 financial management report. Members were advised that the report set out the outturn position for 2019/20, an update on the financial impact of Covid-19 and other financial matters (to date) and sought approval for assumptions, methods and timing of the development of the 2021/22 budget and medium-term financial plan.

There had been a financial impact from Covid-19 on quarter 1 of the budget with loss of income and an increase in expenditure.  Whilst the government had provided some funding to cover the financial gap, the balance of £43m was currently being funded by the Council’s reserves.

Actions were being taken to address the short-fall including ending property leases and rolling back the capital programme to address a smaller number of projects. A review of on-going Covid-19 costs and seeking ways to contain the current year’s operational and financial pressures was on-going.

The Portfolio Holder(s) for Adult Social Care and Health and Children, Education and Early Years set out the complex financial positions faced by the services as a result of the pandemic and the outcomes that the council wanted to achieve,  the need to adjust to new ways of working and importance of the continuation of transforming  services. 

Decision

(a)       That the outturn position for 2019/20 and the impact this had on reserves be noted;

(b)       That the Senior Leadership Team’s forecast for Dorset Council’s position at the end of Quarter 1 be noted;

(c)        That the position on the capital programme be noted and the projects recommend by officers (as set out in Appendix 1 of the report) be approved;

(d)       That the key milestones lifted from the draft timetable for budget/Medium Term Financial Plan (MTFP) for 2021/22 be agreed (as set out in Appendix 2 of the report);

(e)       That the inherited and revised draft budget assumptions to allow development of the first iteration of the five-year MTFP be noted (as set out in Appendix 3 of the report);

Reason for the Decision

The Council has responsibilities to deliver against its 2019-20 Revenue Budget and 2019-20 Capital Programme and maintain adequate reserves. These recommendations and accompanying report demonstrate the Council’s performance in delivering against these responsibilities.

Cabinet need to understand the significant financial impact and consequences of the Council’s response to the Covid-19 pandemic.

Understanding the financial position at the start of the planning process is key to adopting the most appropriate assumptions in the development of the MTFP.  Agreeing an initial set of assumptions will allow officers to develop the first iteration of the MTFP and budget for 2021/22 for consideration and conduct sensitivity testing.

Governance of the financial strategy will be critical as we build the next MTFP and agreeing key milestones for the work and member review/challenge are important at this stage to ensure maximum engagement.