Agenda item

Report of the Strategic Director of Finance and Customer Services

Recommendations:-

1.    That the substantial costs associated with responding to the Covid-19 pandemic be noted.

2.    That the funding received from Government to be used to mitigate the costs of responding to the Covid-19 pandemic be noted.

3.    That approval is given to the expenditure incurred and anticipated on the Covid-19 response, in accordance with the expectations and guidance from Government and the Financial and Procurement Procedure Rules contained within the Council’s Constitution.

4.    That approval be given to the utilisation of the Covid-19 emergency grant funding in accordance with expectations and guidance from Government and the Financial and Procurement Procedure Rules contained within the Council’s Constitution.  

5.    That the approach taken to the distribution of 75% of the Infection Control Fund as per national guidance is noted.

6.    That approval is given to the recommended approach for the allocation of the 25% discretionary element of the Infection Control Fund.

Consideration was given to a report which provided an update on a number of financial matters, including those related to Covid-19. The report was provided as an interim update for Cabinet, following on from the approval of the Budget and Council Tax 2020/21 report in February 2020 and in advance of the Financial Outturn 2019/20 and Financial Monitoring 2020/21 reports to be submitted to Cabinet in July 2020.

It was reported that, in common with local authorities across the country, the Council faced significant operational impacts on service delivery along with the financial impact of the Covid-19 pandemic on residents and local businesses resulting from the associated restrictions and the substantial support being provided to residents, care organisations and other organisations and businesses. The Ministry for Housing, Communities & Local Government (MHCLG) was collecting monthly financial management information from councils in order to understand the impact of the Covid-19 pandemic on local authority finances, to inform MHCLG planning purposes and to help identify where the greatest pressures are likely to be and to support an ongoing assessment of likely future costs. The total estimated cost of Covid impact to the Council, as submitted to MHCLG was £40.1m, from a combination of:

·         Additional costs

·         Loss of sales, fees and charges and income

·         Non-delivery of budget savings

·         Increased rent arrears and other costs for the Housing Revenue Account

·         Loss of business rates and council tax income

The majority of the cost impact was on Adult Social Care and included dealing with additional demand, supporting the market and providing personal protective equipment (PPE). The anticipated cost of PPE, as envisaged at the time and included within the MHCLG return of 15 May, was £2.8m. Most of the impact on loss of sales, fees and charges and income was within the Regeneration & Environment Directorate, with the main areas of impact being Cultural and Related Services and Planning and Development.

It was noted that the report had been subject to pre-decision scrutiny by the Overview and Scrutiny Management Board on 10 June 2020, where Members had recommended that:

1.    That Cabinet be advised that the recommendations be supported.

2.    That the Leader of the Council write to all three Members of Parliament for the borough seeking their support to lobby the Government to ensure the Council is fairly funded to respond to the impact of the Covid19 pandemic.

3.    That, at an appropriate time later in the year, the Leader of the Council hold an all Member Seminar on the proposals for the authority’s recovery from the Covid19 pandemic and the likely financial impact of proposed changes.

In receiving the recommendations, Cabinet noted that the Leader of the Council had already encouraged the three MPs representing the borough to lobby the Government for fair funding to respond to the Covid-19 pandemic.

Resolved:

1.    That the substantial costs associated with responding to the Covid-19 pandemic be noted.

2.    That the funding received from Government to be used to mitigate the costs of responding to the Covid-19 pandemic be noted.

3.    That approval be given to the expenditure incurred and anticipated on the Covid19 response, in accordance with the expectations and guidance from Government and the Financial and Procurement Procedure Rules contained within the Council’s Constitution.

4.    That approval be given to the utilisation of the Covid-19 emergency grant funding in accordance with expectations and guidance from Government and the Financial and Procurement Procedure Rules contained within the Council’s Constitution.

5.    That the approach taken to the distribution of 75% of the Infection Control Fund as per national guidance is noted.

6.    That approval be given to the recommended approach for the allocation of the 25% discretionary element of the Infection Control Fund.

7.    That the recommendations of the Overview and Scrutiny Management Board be accepted.