Agenda item

Report attached.

Councillor Eamonn O’Brien, Leader and Cabinet Member for Regeneration presented a report outlining the key financial information and significant updates affecting the Council’s financial position in 2020/21 and the impact on the Council’s medium term financial strategy.

This year, the context in which financial planning was to be undertaken would be the most complex and difficult of recent times.

The significant financial impact of Covid cannot be underestimated and this was likely to be felt over the medium and longer term just as much as the shorter term.  Government funding has been provided in the short term but any funding longer term was uncertain and the need to plan now for the future was ever more important.

The following scenarios had been calculated and regardless of the planning,

there was significant inherent risk in any modelling particularly with the

current economic uncertainties and anticipated changes in accounting rules

for the collection fund. 

·         Optimistic – This assumes a minimal recession and a return to previous levels by April 2021.

·         Mid-Range – This assumes a short lived recession lasting up to one year with a one-year gradual recovery;

·         Pessimistic – Medium term recession lasting the whole of the 5 year MTFS period with some minimal recovery from year 3 onwards.

Councillor Walker stressed the need for continued funding in essential services such as street lighting and asked if the government would provide continued finance for capital schemes. It was stated that whilst savings would need to be made health and safety would still be a priority in relation to the impact on public services.

Councillor Vernon asked about the collection fund impact on the financial strategy and what plans are in place to improve the amount of business rates and council tax income. It was reported that this would be looked at later in the year and due to Covid it was anticipated to be 5% lower than the previous year. Letters offering support and relief arrangements would be sent out in relation to payment collections.

Lisa Kitto, Deputy Chief Finance Officer provided the committee with further financial details in relation to government grants and the anticipated reduction with council tax and business rates.

Members commented if further financial help would be received from the government and it as reported that further submissions were being worked on and the whole of Greater Manchester was compiling information to support further bids. It was hoped that by the end of November more information may be available to communicate.

Further discussions took place on the loss of council tax collection and the impact upon budgets.

The Chair drew attention to the 2021-22 budget setting timetable in the report and asked about the consideration of savings options and it was reported that this was in relation to potential service restructures.

Councillor Vernon reported that car parking charges had been reintroduced in Bury but the machines were not ready resulting in lost revenue. It was confirmed that was the case and a small financial loss would have occurred on those days.

It was agreed:

That the update be noted.