The Head of Financial Services had submitted a report to update members on the estimated financial impact of the Coronavirus together with agreement upon mitigating actions.

Councillor Ed Turner, Cabinet Member for Finance & Asset Management introduced the report. The effects of Covid-19 on the Council’s finances were profound. He drew attention to the anticipated deficits over the next 4 financial years. The  Council had sought to protect frontline services by safeguarding income streams and it was precisely those income streams which were adversely affected by Covid-19. Income projections were therefore having to be revised in a wide range of areas.

It was necessary to take careful stock of the present position. The extent of support from central government was minimal as a  proportion of the additional costs incurred to date and there was uncertainty about the extent of future support. It would be necessary, also, to take stock once the immediate crisis was over of the position of, for example, the property and leisure sectors. The Council was adopting a two pronged approach, first pausing non-essential expenditure which will generate in year savings to mitigate the deficit which will accrue. Secondly, the Medium Term Financial Strategy will be reshaped, with work on it starting much earlier in the financial year than hitherto. This will inevitably involve some difficult choices and would, as always, be the subject  of public consultation. The focus however will remain on delivering against the Council’s values, including among others,  safeguarding frontline services; narrowing the gap between rich and poor; and avoiding compulsory redundancies. He concluded by paying tribute to the significant contribution of officers in the Finance Team at this challenging time.

Cabinet resolved to:

1.         Agree the mitigating actions proposed against the financial impact of the coronavirus;

2.         Note the additional spend commitments taken under Executive Emergency powers to commit further expenditure in 2020-21 in the order of £1.5 million as detailed in paragraph 11-12; and 

3.         Agree the strategy of a transfer from reserves by the Head of Financial Services to cover the estimated increased net expenditure in 2020-21 followed by a budget re-set for 2021-22 and beyond.