Agenda item

Councillor Eamonn O’Brien, Leader and Cabinet Member for finance and growth presented a report about setting the 2021/22 Budget.

The context in which financial planning is being undertaken was perhaps the most complex and difficult of recent times. When the Council’s 2020/21 budget was set uncertainties around Government policy and funding through the Comprehensive Spending Review, Local Government Finance Settlement, the Fairer Funding Review, the Business Rates Retention Review and potentially other major reforms existed.  Whilst a challenging situation then, this was without the emergence and impact of the Covid-19 pandemic, which would continue to have a significant financial impact on finances and on the wider economic position of the borough and region, for some time to come. 

The extent of how long this would last economy wise cannot be predicted but will bring additional pressures in demand for the services provided by the Council and partners. The significant financial impact of Covid-19 cannot be underestimated and as the economic impact of Wave 1 is still unfolding the potential for an even greater impact of Wave 2 and beyond is one which the Council needs to consider and plan for.

Members of the committee were provided with a summary of the report which included:-

• The revised financial position.
• Managing shortfalls via a combination of reserves, budget reductions and efficiencies through transformation.
• The overall financial position over a 4 year period.
• Levels of reserves.

Councillor Powell commented on the community climate funding and it was reported that partner would be used to deliver more tree planting for less costs.

Councillor Mortenson asked about funding for the regeneration of Radcliffe and it was stated that the finance earmarked for that project would be protected.

Councillor Harris expressed concerns on overspending and the use of reserves. She also enquired if the Council had applied to the Bellwin scheme, which provided discretionary funds to help councils who face an undue financial burden as a result of large-scale emergencies. It was reported that the Council would expect to apply soon and careful consideration would be undertaken in terms of what the claim would be for.

Councillor Harris asked about work undertaken to engage a partner to lead on design and discovery analysis and it was reported that this had been applied for but not awarded to date.

The impact of Covid had also meant an overspend in some departments

which would affect the delivery of some services provided. A discussion

took place about an external transformation partner and there was a worry

from some Members about the high costs of external consultants.

Councillor Smith asked if reserves would be used to make up the income

shortfall from the closure of civic venues and car parking. She also had

concerns about the possible closure of nurseries in the borough and the

regression of children since the first lockdown.

The Leader reported that making savings would be difficult but working

more closely with the local community, new partnerships and public sector

reforms could help matters.

Councillor Vernon enquired if a full break down of extra Covid related costs

would be made available. It was reported that a monthly breakdown was

provided to central government

The Chair provided comments on Manchester airport and the loss of a

dividend and loan interest repayment due to the impact of Covid on the

travel industry which was detailed in the report.

The Chair also enquired about Council tax collection and it was reported

that a mid-range scenario would be applied to the position of recovery.

Discussions also took place on the funding created to support transformation with the expectation that long term savings would be delivered via this scheme.