Decision - General Fund Financial Planning Update

RESOLVED:

(1)      That the updated ‘Moderate View’ forecast as at Month 5 (August) which indicates a deficit of £19.671m consisting of an overspend on services of £7.853m and a Collection Fund deficit of £11.818m be noted;

(2)      That the use of the ‘Financial Smoothing’ mechanism set out in paragraph 3.14 to manage Covid-related budget deficits both for the current year and for 2021/22 assuming a maximum of £20m for financial planning purposes be approved and, that it be noted:

(i)   that the expected use of reserves to mitigate any deficit will be updated for the month 9 (December) forecast and recommended and approved by Policy & Resources Committee and Budget Council respectively in February 2021, and;

(ii)   that the actual use of reserves to mitigate any deficit will not be finally determined until the 2020/21 accounts are closed and the outturn position reported to Policy & Resources Committee for approval in July 2021.

(3)          That the continued pause of new capital schemes as set out in paragraph 3.27 and that paused schemes will be subject to further review at the December Policy & Resources Committee meeting be agreed.