Issue - meetings

This report gives a summary of the Council’s overall financial position for 2020/21 at the end of month five (31 August 2020).

The Finance Manager gave a summary of the Council’s overall financial position for 2020/21 at the end of month five (31 August 2020).

Current monitoring indicated that:

· The General Fund Balance was being maintained at or above the adopted level. A significant overspend against budget was predicted from a combination of additional expenditure and reduced income as result of Covid-19.

The overspend was being mitigated through additional Government Funding, including the recently announced income guarantee scheme, the healthy financial position of the General Fund Balance was as a result of 2019/20 Outturn position and steps taken by services. These factors had led to a change in position whereby it was now considered in year emergency action would not be required to address the shortfall if members were in agreement to using the General Fund Balance. The Balance still maintained within the adopted range, although at the lower end.

· The Housing Revenue Account Balance was being maintained at or above the adopted level.

There was a discussion concerning the disappointment to the Government’s position on not recompensing charitable trusts that provide leisure services such as LED. A letter had been sent to East Devon’s MP Simon Jupp but to date no response had been made.  Leisure services were very important to the health and well-being of the district’s residents and a follow-up to Mr Jupp for a response would be made.

RECOMMENDED to Council that:

1.     Acknowledge the variances identified as part of the Revenue and Capital Monitoring process up to Month 5, and

2.     agree to use the General Fund Balance to meet the in year net shortfall as result of Covid-19 currently estimated at £1.163m

3.     agree as a matter of urgency, that a further letter be sent to the District’s 3 MPs highlighting the situation regarding LED charitable trust and that the request be sought to lobby Government to a change to funding proposals for charitable trusts.

REASON:

The report updated the overall financial position of the Authority at set periods and included recommendations where corrective action was required for the remainder of the financial year.