Issue - meetings

DECISION

1.    That the measures introduced by the Government that have affected the Council’s financial position, and the support to businesses and residents, be noted;

2.    That the current projected financial 2020/21 position be noted and that future reports be requested as the situation develops;

3.    That further lobbying be approved to ensure that the Government recompenses the Council appropriately.

Portfolio Holder and Officer

Cllr Howard

PJ

REASON FOR DECISION

Councillor Howard presented a report, which set out the measures taken by the Government to date in response to the COVID-19 pandemic and their impact on the Council’s finances.

This was an interim report on the projected position, whilst still in the middle of the early response to the virus. Significant impacts were being experienced, and more were expected.

The Council had been helping support the Government response through the payment of Business Grants, with over 1,100 paid, amounting to more than £12.5m and a recently-announced extension to the scheme, as well as the additional award of Council Tax Support.

The most significant pressure facing the Council during 2020/21 would be income losses, especially in relation to Leisure and Parking, currently estimated as a total of £1.75m. There had also been additional costs, such as IT equipment for setting up Working From Home, and in relation to homelessness and the non-achievement of the Transformation Programme targets. 

The Government had announced its commitment to cover costs, but the amounts received so far (in two tranches - £47,000 and £703,000) only partly offset losses. Also, future years were uncertain, and would depend on how the economy was brought back, as well as how customers responded. Further support was expected, but ongoing lobbying was essential. The Ministry of Housing, Communities and LocalGovernment(MHCLG) was also collecting monthly data on the impact on councils. The Council would continue to monitor impactsand submit regular reports.

In the longer term, there were concerns around the council tax base and business rate income. Fair Funding and Business Rate Retention had been deferred for another year and postponement of the Business Rate revaluation had just been announced.

The pandemic had had, and would continue to have, a large and long lasting impact on how the Council operated. The last few months of unprecedented change had challenged the global economy and the effects would be felt for some years into the future. Therefore, it was important to monitor the situation as things developed, and to maintain lobbying efforts to ensure that the Government responded in a manner that enabled the Council to continue to deliver valuable services for local residents and businesses.

Members commented on the seriousness of the situation and the vital importance of continuing to lobby Government due to the significant financial impact affecting the delivery of council services. Confidence was expressed that the Portfolio Holder would monitor the situation closely and advise Members accordingly.

OTHER OPTIONS OR ALTERNATIVES CONSIDERED

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