Agenda and minutes

Cabinet
Thursday 18th June 2020 6.00 pm

Venue: Committee Room 1 Civic Suite

Contact: Jane Game  Democratic Services Officer

Items
No. Item

1.

Apologies

Minutes:

None received.

2.

Declaration of Interest

To receive declarations of interest from Members.

Minutes:

None received.

3.

Questions and Deputations

To answer any questions, if any asked by any resident of the Borough pursuant to Standing Orders.

Minutes:

None received.

4.

Minutes pdf icon PDF 195 KB

To receive for information only the minutes of the previous meeting held on 5 March 2020.

Minutes:

The minutes of the meeting held on 5 March 2020 were presented for information only.

 

RESOLVED:

That the minutes of the meeting held on 5 March 2020 be received for information only.

 

5.

MTFS update (incorporating the Final Accounts out-turn position for 2019/20) pdf icon PDF 300 KB

To outline the impact on the latest Medium Term Financial Strategy (MTFS) of the Final Accounts out-turn position on Revenue and Capital budgets for 2019/20.

Additional documents:

Minutes:

 

The Cabinet was provided with a report which outlined the impact on the latest Medium Term Financial Strategy (MTFS) of the Final Accounts out-turn position on Revenue and Capital budgets for 2019/20.

 

The Director of Resources and Deputy Chief Executive advised Members that the report set out the 2019/20 year end out-turn financial position for the Council, by Cabinet Portfolio, within the context of the latest MTFS for 2020/21 to 2022/23 and provided an update on how any risks which were highlighted as part of the MTFS would continue to be managed into the new financial year. The final accounts were presented in Cabinet Portfolio format.

 

The final Accounting Statement would be reviewed by the Audit Committee on the 7th September and presented to the Governance Committee on the 23rd September alongside the Audit Findings Report which would be presented by the Councils external auditors Grant Thornton.

 

With regard to the General Fund Revenue position 2019/20 Appendices A to E set out the final position for 2019/20 for revenue, capital, the reserves position, MTFS Savings, budget virements, reserve contribution requests, carry forward requests and included explanations of key variances.

 

Subject to the approval of the reserve contributions and carry forward requests as detailed  in Table 3a and 3b of Appendix A, the Council was (£98,000) ahead of the overall financial position reported in the latest MTFS for 2020/21 to 2022/23. The Cabinet was asked to approve that this balance be contributed towards the Budget Strategy Reserve in order to provide further resilience for future years’ financial planning.

 

 

 

RESOLVED:

(i)  That the 2019/20 final position on the General Fund Revenue Accounts summarised in section 3 of the report and detailed in Appendices A to E of the report, including endorsing the budget virements for the final quarter detailed at Appendix E and approving the creation of the specific reserves and the future year commitments detailed in Appendix A, Table 3 of the report be approved;

 

(ii)  That the 2019/20 contribution to the Adult Social Care Contingency of £254,000 as outlined in paragraphs 3.10 – 3.12 of the report be approved;

 

(iii)  That varying future contributions to/from the Adult Social Care Contingency depending on each year’s financial position as outlined in paragraphs 3.10 – 3.12 of the report be approved;

 

(iv)  That the £90,000 contribution to the existing Employment and Skills reserve in the Children, Education and Skills portfolio as outlined in paragraphs 3.13 – 3.16 of the report be approved;

 

(v)  That the carry forward requests within the Resources portfolio totalling £550,000 as outlined in paragraphs 3.20 - 3.21 of the report be approved;

 

(vi)  That the additional contribution to the Birmingham Airport reserve for dividends be approved and that the future adjustments to the reserve depending on the position in each financial year per paragraph 3.22 of the report be approved;

 

(vii)  That the 2019/20 final position on the Capital Accounts and re-phasing proposals outlined in paragraph 3.26 of the report and summarised in Appendix A, Table 4 with the  ...  view the full minutes text for item 5.

6.

Financial Implications of COVID-19 pdf icon PDF 384 KB

To report on the financial implications of the Covid-19 outbreak for the Council. This report gives the best assessment that we are able to make at this point in time of the overall financial impact of Covid-19 on the Council’s financial position for the full year 2020/21.

Additional documents:

Minutes:

Members received a report which:-

 

·  Reported on the financial implications of the Covid-19 outbreak for the Council. The report gave the best assessment that the Council can make at this point in time of the overall financial impact of Covid-19 on the Council’s financial position for the full year 2020/21;

 

·  Provided an update on the impact of Covid-19 on the latest Medium Term Financial Strategy (MTFS) which was approved by Council on 27 February;

 

·  Detailed the funding allocations from government, a summary of pressures and lost income to be set against that funding and it detailed the specific areas for which funding had been made available, e.g. business support grants, infection control;

 

·  Reported that the Resources and Delivering Scrutiny Board in May received a report which outlined the position over a 12 week period, which was broadly in line with the returns which the Council had been completing for the Ministry for Housing, Communities and Local Government (MHCLG). Future MHCLG returns were likely to be based on the full year impact, so the report would be used to form the basis of those future returns;

 

·  Estimated full year impact of Covid-19 for 2020/21 was £18.197 million greater than the government funding received to date;

 

·  Proposed that the financial position detailed in the report was monitored through the officer group called the Aligning Resources to Our Priorities (ARTOP) Board. The Board would have responsibility for making sure that every effort was made throughout the financial year to mitigate the impact; and

 

·  Invited Cabinet to approve the contribution of an estimated £53.560 million of Section 31 grants in relation to additional business rate reliefs to the Business Rates Timing Reserve, as outlined at paragraph 5.8 of the report.

 

In introducing the report the Cabinet Portfolio Holder for Resources advised Members that the Covid-19 outbreak had led to an unprecedented response from the Council from all perspectives, where all services had found new ways in which to support local communities, the economy and businesses across the Borough.

 

The restrictions introduced to limit the spread of the virus had resulted in a significant loss of income from service closures, while the measures put in place to protect service delivery and support the Council’s most vulnerable residents had led to additional costs. The combination of these factors was having a significant impact on the Council’s financial position. 

 

The report provided details of the government funding allocations that had been made available to date to support individuals, businesses, suppliers, council services and parish councils and the pressures that had been set against this additional funding. However, the estimated full year impact of Covid-19 for 2020/21 was £18.197m greater than the government funding received to date.

 

The report covered the following areas in detail:

 

·  Summary of Covid-19 Government grant funding allocations and projected commitments for the financial year 2020/21 (as at 31 May 2020) (section 4 of the report);

·  Business Grants Support (section 5 of the report)

·  Top Up Business Grants (section 6 of the report)

·  Council  ...  view the full minutes text for item 6.

7.

Exclusion of the Public and Press

The meeting is likely not to be open to the public during discussion of the following items because the reports contain exempt information as defined in Schedule 12A to the Local Government Act 1972

Minutes:

RESOLVED:

That, pursuant to Section 100A (4) of the Local Government Act 1972, the press and public be now excluded from the meeting for the remainder of the business to be transacted, on the grounds that there would be disclosure to them of exempt information in terms of paragraph 3 of Part 1 of Schedule 12A to the said Act.

 

 

8.

Minutes

To receive for information only the minutes of the previous meeting held on 5 March 2020.

 

9.

Bereavement Services Strategy Update

To set out options for the future provision of burial and cremation services.