Decision details

To receive an update, and take any necessary in year decisions, on the Council’s Medium Term Financial Strategy.

That it be noted that:

(a)  An initial financial assessment indicates that the gross costs of Covid-19 to the Council may reach £15.3 million.

(b)  Currently, the Government grant to cover Covid-19 costs is insufficient, covering less than half the estimated costs. It amounts to just £7.6 million. This leaves an initial funding gap of £7.7 million.

(c)  Expenditure reductions of £4.8 million have been identified to partly offset this, leaving a possible £2.9 million adverse impact on general reserves.

(d)  The forecast shortfall in funding can be contained within forecast general reserves for 2020/21 although any further pressures, if realised, could lead to general reserves dipping below the recommended minimum, which could lead to the need for a freeze on all non-statutory spending.

(e)  The financial situation needs to be monitored very closely, acknowledging that current estimates remain provisional because the full impacts of the virus are still emerging.