Issue - meetings

Report No:   CAB/WS/20/043

Portfolio Holder: Cllr Sarah Broughton                 Lead Officer: Rachael Mann

RESOLVED:

That:

1.       the financial impacts of COVID-19 on the council finances, be noted; and

2.       the next steps and principles for future planning at section 8 of Report No: CAB/WS/20/043, be supported.

The Cabinet considered this report, which presented the financial impacts of COVID-19 on the Council’s finances and sought endorsement of the proposed next steps and principles for future planning.

Since the outbreak of COVID-19 in the UK, a number of events had occurred which had had a significant impact on West Suffolk Council’s financial position. Some of these had been restrictions imposed by Government that had affected West Suffolk Council’s investments, assets and services; and others had been announcements of Government financial support. These were summarised in the timeline attached to the report at Appendix A.

The Council had responded to COVID-19 in respect of supporting businesses and the most vulnerable in West Suffolk communities as well as running essential services. This support was (covering the current financial year 2020/21) expected to cost £2.2 million. Equally, the money expected to be generated by the Council in the current financial year, through income, was expected to reduce by £8 million. The money so far allocated by Government (£1.8 million) did not cover this gap which, with Government funding so far, was a total of £8.4 million, a loss of 15% of the Council’s gross budget for the current financial year 2020/21.

Councillor Sarah Broughton, Portfolio Holder for Resources and Performance, drew relevant issues to the attention of Cabinet, including the implications, and managing the effects of, COVID-19 on the Council’s finances as set out in the report.

Having acknowledged and noted the significant financial impact COVID-19 was currently having on the Council’s finances, the Cabinet was in support of the proposed next steps and principles for future planning, as set out in section 8, in order to balance this year’s budget, and for making revisions to the medium term plan.

RESOLVED:

That:

1.       the financial impacts of COVID-19 on the council finances, be noted; and

2.       the next steps and principles for future planning at section 8 of Report No: CAB/WS/20/043, be supported.