Issue - meetings

The purpose of this report is to review the Medium Term Financial Strategy in the light of the Covid-19 crisis and its impact on the Council’s finances.   

That Cabinet:

1)       Notes the emerging financial position within which the 2020/21 budget and 2020-25 Medium Term Financial Strategy will be developed;

2)       Agrees the approach to the funding of the financial impact of Covid-19 in 2020/21 as set out in paragraph 3.4;

3)       Agrees the proposals for the refresh of the 2021/22 MTFS and Capital Strategy, as set out in Sections 4 and 5;

4)       Notes the requirement for the Authority to set a sustainable balanced budget  which shows how income will equal spend over the short- and medium-term; and

5)       Approves the timetable for agreeing the 2021/22 budget.

Councillor Peter Butlin (Deputy Leader Finance and Property) introduced the published report. He explained that the Covid-19 pandemic had created a new reality and that the Medium-Term Financial Strategy that was agreed in February 2020 was obsolete. Cabinet was informed that as well as being impacted by Covid-19 the Council would need to find additional resources for special needs education and a general increase in demand for services to the high needs sector. Fortunately, the Council had sets aside reserves which will assist in the short-term giving officers and members the opportunity to reset the financial agenda. It is forecast that over the next five years Covid-19 will result in a £25m funding gap. This has to be added to the previously set savings target of £33m. The government has said that it will make good some of the losses resulting from Covid-19. However, there will still be a shortfall. Councillor Butlin concluded by emphasising the need to get the economy working again.

Councillor Helen Adkins reiterated the view expressed earlier in the meeting by Professor Mond that the opportunity should be taken during the recovery phase to reduce carbon emissions.

Councillor Keith Kondakor suggested that rather than recovery a change into a new state will be seen. A four-day working week may become the norm, A review of the capital programme is required and there should be an emphasis on providing support for young people moving in to employment.

Councillor Maggie O’Rourke sought assurances that front line services would be safeguarded. She suggested not acting or making decisions too fast as a second Covid-19 wave might change the position again.

Councillor Jerry Roodhouse noted that whilst the Council is better placed financially than others, the current crisis will result in reserves being spent. He asked that any review of non-statutory services be undertaken in a transparent way that is open to scrutiny.

Councillor Judy Falp expressed her concern for staff who, she suggested, might be worried about their jobs. She asked that they be kept informed of progress.

In response to members’ concerns assurances were given that climate change is taken very seriously and that all elected members will be involved in the development of future performance indicators. The efforts that staff have gone to in recent weeks were commended and assurances we given that staff wellbeing is at the forefront of workforce management.

Councillor Peter Butlin emphasised that the economy in Warwickshire remains strong. Retail in the high street was struggling prior to the pandemic. The collapse of many retailers now being witnessed will require new solutions In addition, Councillor Butlin observed that it is often young people who are early casualties when the economy is in difficulties. The government has pledged resources to assist those young people to find employment.

Resolved:

That Cabinet:

1)       Notes the emerging financial position within which the 2020/21 budget and 2020-25 Medium Term Financial Strategy will be developed;

2)       Agrees the approach to the funding of the financial impact of Covid-19 in  ...  view the full minutes text for item 3