Decision details

Cabinet considered a report of the Director of Corporate Resources providing an update on the financial position of the County Council.

With the agreement of the Chairman, Councillor House addressed Cabinet. He recognised that it appeared unlikely that the Government would now reimburse the full financial impact of the Covid-19 pandemic and therefore the situation would remain very difficult. The possibility of another lockdown, with potential additional financial pressures, was recognised and the importance of local government emphasising its position as a key driver of response and recovery was highlighted.

The report was introduced and a number of key areas drawn to Cabinet’s attention. It was noted that concerns about medium term sustainability already existed when the budget was agreed in February. There was now a strong likelihood of a single year financial settlement from government, which may not take the significant levels of inflation in service delivery into account. The Covid-19 crisis had exacerbated existing pressures through the unexpected extension of services, loss of income and increase in demand. There had furthermore been delays to saving expected under T21 as a number of programmes had been paused. The losses and other financial impacts set out in the report were outlined and the urgent need for proper compensation was emphasised. It was confirmed that the scenarios set out did not include the potential for further lockdown.

Members welcomed the comprehensive and unambiguous nature of the report and acknowledged the position it set out. It was clarified that government reporting requirements were very specific to ensure that a consistent comparison between areas could be achieved.

The recommendations set out in the report were considered and agreed. A

decision record is attached to these minutes.