Issue - meetings

The Deputy Leader of the Council and Cabinet Member for Commercialisation, Education and Skills along with the Corporate Director of Finance and Assets submitted a joint report presenting the provisional revenue position for 2019/20, subject to audit by Grant Thornton, the Council’s external auditors.

The Deputy Leader thanked officers and fellow Cabinet Members for delivering an underspend in the 2019/20 financial year. Councillor Holland summarised the financial effects of the Covid-19 pandemic so far with both higher costs and lower revenue. He advised Members that the Corporate Director of Finance and Assets (Section 151 Officer) did not consider that he would have to issue a Section 114 Notice that the Council was financially unstainable at this time; however, this was a matter for the Section 151 Officer’s professional judgement for the future.

Councillors Jim Grant and Bob Wright asked a series of questions covering:

·        What lobbying the Council was undertaking to secure additional government funding to cover the anticipated shortfall.

·        Whether the Section 151 Officer could bring a report to Council to set out what a Section 114 notice and the circumstances in which it could be used.

·        What degree of confidence the Cabinet Member and Corporate Director had in managing the budget deficit.

The Leader of the Council, Councillor Holland, and the Corporate Director of Finance and Assets responded at the meeting.  Councillor Holland agreed to provide a briefing to all Members regarding Section 114 notices.

Resolved: (1) That the 2019/20 revenue out-turn for each service area set out in Table 1 in the body of the report and Appendix 1 to the main report be noted;

(2) That it be noted that the underspend on the General Fund of £613k has resulted in an increase in the General Reserve to £7.2m and that the Chief Executive be asked to thank all staff for helping achieve this.

(3) That the flexible use of capital receipts in 2019/20, as set out in Appendix 2 be noted

(4) That the update on the impact of COVID-19 be noted.

The reasons for the decision and alternative options are as set out in the report to the meeting.