The Director of Corporate Services gave an update on the current budget position. The budget gap was originally  £3.3 million rising to £11.2 million in 2024-25 but has been revised to £16.7 million rising to £19. 7 million over the same period. The main assumptions in pay and inflation have been reviewed and updated. The Spending Review will be for one year in late November, the local government settlement will be announced week commencing 14^th December. These timescales make it difficult to plan and budget appropriately. The Business Rates Reset and Retention Scheme has been deferred and there are question if this is suitable funding for local authorities.

Covid has had a significant impact on the budget, income on parking, leisure and other sources have been threatened. There is a challenge to achieve some savings either because staff have been deployed elsewhere or savings not appropriate to implement during the pandemic.

Some savings proposals will go to cabinet on the 9^th November and the Overview and Scrutiny Commission on the 11^th November. All available savings proposals will be collated into the budget pack and will be dispatched at the end of December as in previous years. 

A panel member queried whether the monitoring reports includes details on the funding received from the government which amounts to almost 15m and the additional monies for the second wave of Covid. Also if the Children Schools and Families £2 million outturn for non-Covid savings, would have resulted in £3 million if the department had made the forecast savings.

The Director of Corporate Services reported that it included grants of almost £15 million and the most recent monitoring reports includes further details of government grants. There are savings of £2.9 million within Children Schools and Families department. The shortfall is currently forecast as £734,000 and is factored into outturn position of a favourable variance of £1.229 million.

A panel member asked if the Director of Corporate Services if her Department is reviewing opportunities for further funding from grants and other sources including the council charging for services even on a temporary basis to support financial recovery

The Director of Corporate Services said they are maximising opportunities received from a range of grants including homelessness, rough sleeping and climate change emergency. The loss of income is unprecedented but it is important to secure income that can be sustained.

A Panel Member asked for further detail of departmental base budget incremental increase over the next four years. The Director of Corporate Services said a breakdown is available and will be sent to panel members. 

A Panel Member asked if the government will fund the costs of recovery. The Director of Corporate Services said money has been received for the vulnerable and business support. Some funding finishes at the end of this financial year and there is still a need to secure ongoing income.

RESOLVED

The Chair thanked the Director of Corporate Services for her report.

The Director of Corporate Services to provide the Panel with the breakdown of the departmental base budget.