[Councillor Karen Richardson
arrived at 5.18pm, during the consideration of this
item].
[Councillor Andy Neal left the
meeting at 5.48pm, during the consideration of this
item].
Prior to the presentation of
the Quarter 1 performance report, the Assistant Director (Resources
and Performance) set out the context around Covid-19. 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 and services; and others had been announcements of
Government financial support.
The Council had played its part
in responding to Covid-19 in supporting businesses and the most
vulnerable as well as running essential services. Appendix J provides an infographic of the support
role West Suffolk had and continued to play. However, this had come at a cost of £2.2m
and had also impacted on a number of the local performance
indicators, most notably around housing and
homelessness. Furthermore, money
expected to be generated by the Council in the current financial
year through income was expected to reduce by £8m.
Funding so far received from
the Government was £2.1m (updated numbers provided to members
at the meeting following receipt of third tranche of government
funding) of which £0.3m was used to fund the 2019-2020
shortfall, and did not cover the financial gap which, with funding
so far, was a total of £8.4m, a loss of 15% of the Councils
gross budget for 2020-2021. This
unprecedented event would therefore require the Council to not only
utilise to its full extent its £4.9m general fund reserve
in-year, but with £3.5m still left to cover, the Council
needed to plan for in-year savings and the potential use of its
earmarked reserve balances. The impact
of Covid-19 was likely to be felt for years to come as the Council
would need to make provision in its medium-term budget plans for
the replenishment of its earmarked reserves, given they were
earmarked for other purposes, and the general fund balances to
manage/cover future budget risks.
The Service Manager (Finance and Resources)
then presented Report No: PAS/WS/20/012, which set
out the Quarter 1 performance and financial outturn position for
2020-2021 up to 30 June 2020, and the impact of Covid-19; Covid-19
Government support received to date; next steps and principles for
future financial planning.
Attached to the report were a number of
appendices, as follows:
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Appendix A: Performance Indicators – Commentary
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Appendix B: Performance Indicators – Growth
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Appendix C: Performance Indicators – Families and
Communities
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Appendix D: Performance Indicators – Housing
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Appendix E: Performance Indicators – Day to Day
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Appendix F: Income and Expenditure Report
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Appendix G: Capital Programme
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Appendix H: Earmarked Reserves
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Appendix I: Strategic Risk Register
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Appendix J: Covid-19 Infographic.
Members considered the report in detail and
asked questions of the Assistant Directors on their indicators, to
which comprehensive responses were provided. Discussions were held on ...
view the full minutes text for item 18.