RESOLVED

1.    That the approach to rolling forward the MTFS for 2021-25 be noted.

2.    That the latest position with regards to savings already in the MTFS be confirmed.

3.    That the approach to setting a balanced budget using the unmet balance of last year’s savings targets as the basis for the setting of targets for 2021-25 be agreed.

4.    That the proposed savings targets based on current assumptions be agreed, but kept under review.

5.    That the timetable for the Business Plan 2021-25 including the revenue budget 2021/22, the MTFS 2021-25 and the Capital Programme for 2021-25 be agreed.

6.    That the process for the Service Plan 2021-25 and the progress made so far be noted.

The Deputy Leader and Cabinet Member for Finance presented the report and thanked all the officers involved for their resilience during the pandemic.  He advised that unless the Government fully funded the cost of the front line services the Council provided throughout the pandemic, there would be have to be very significant cuts to local services in Merton.  It had been estimated that the cost of the pandemic had been £26m greater than the funding provided by the Government.  The financial monitoring reports later on the agenda demonstrated that the Council had reduced its costs by £3m, which resulted in a deficit of approximately £23m and this money would have to be found from somewhere unless the Government reimbursed the Council for the full cost of the pandemic.  The report set out how this would be dealt with in future budgets, and savings to be found in the next financial year were five times greater than that before the pandemic.

The Chair thanked the Cabinet Member and advised that he would continue, along with other London Council leaders, to lobby the Government to recognise the role of local authorities in keeping residents safe during the pandemic.

The Director of Corporate Services advised that the budget gap was linked to the recovery of the economy and successfully dealing with any second wave.  Over 30,000 residents had been furloughed and it was not known at this stage how many of those residents would need financial support when the Government’s furlough scheme ends.  Further Government funding announcements were awaited and officers were working closely with Government departments to ensure that Members had information as early as possible on which to base their decisions.  The financial monitoring reports later in the agenda would also be reported to the Financial Monitoring Task Group.  Officers were continually reviewing figures, savings targets and assumptions and these would be updated as required. 

The Chair thanked all those involved for their efforts and the energy staff had put into protecting Merton’s residents from the pandemic and reiterated that it was the role of Councillors to persuade the Government to properly fund and adequately cover the costs of the pandemic response.

RESOLVED

1.    That the approach to rolling forward the MTFS for 2021-25 be noted.

2.    That the latest position with regards to savings already in the MTFS be confirmed.

3.    That the approach to setting a balanced budget using the unmet balance of last year’s savings targets as the basis for the setting of targets for 2021-25 be agreed.

4.    That the proposed savings targets based on current assumptions be agreed, but kept under review.

5.    That the timetable for the Business Plan 2021-25 including the revenue budget 2021/22, the MTFS 2021-25 and the Capital Programme for 2021-25 be agreed.

6.    That the process for the Service Plan 2021-25 and the progress made so far be noted.