Issue - meetings

To consider a report of the Cabinet setting out the end of year position for the financial period 2020/21 seeking approval of the County Council’s treasury management activities and prudential indicators.

The Council considered the report of Cabinet setting out the year end position for the financial period 2020/21 and seeking approval of the County Council’s treasury management activities and prudential indicators set out in Appendix 2 of the attached Cabinet report.  The Leader confirmed that Councillor Steve Forster, Executive Member for Commercial Strategy, Estates and Property would also speak about this report.

In presenting the report the Leader made reference to the effects of the pandemic which had led to a cautious financial approach in light of the uncertainty of the level of Covid funding that would be received by the Government.  However, funding had been received, albeit in tranches, and was welcomed.  The pandemic had also hampered delivery of the savings programme within the expected timescales and this would be addressed over the next two years.  In commending the report to the Council, the Leader highlighted that the Council had operated within budget whilst delivering what was required in regard to Covid-19.  He was of the view that the year ahead would be difficult, particularly in regard to adult social care and it was unclear whether the same level of funding would be received as in the last financial year. 

The Executive Member reported that the Council had experience increased demand for its services and had already achieved 0.6bn efficiency improvements.  The Executive Member stressed that the Council was continuing to lobby MPs and Government for increased funding and the County Deal, should it proceed, might offer further opportunities.  Hampshire’s overall spending and budget had increased and the Council was focused on prioritising key areas and efficiencies by making investment to secure subsequent savings such as in the digital arena.  Funds being saved elsewhere were being prioritised for adult social care and children’s services.  Reserves were continuing to be used wisely including delivering over £10m annually in interest.  Investment was also being made in highways, Covid recovery and proactive property investments.  Significantly, the Council’s capital spend in the last financial year was £214m.  The Executive Member commented that the way ahead was challenging however, the Council’s sensible approach in the use its finances had resulted in it being in a good position going forward.

During the course of debate local improvements such as the inclusion of additional footpaths was recognised as was the need to continue to lobby Government hard to secure funding for frontline services.  Concern was expressed regarding the impact on, for example, youth services and community transport provision.  It was also noted that some funding had been earmarked for the Queen’s Platinum Jubilee.  The Leader commented that fundraising would also be considered and he would be discussing this with the Lord Lieutenant for Hampshire.

RESOLVED:

That the County Council approves the report on the County Council’s treasury management activities and prudential indicators as set out in Appendix 2 of the attached Cabinet report.

To consider a report of the Cabinet setting out the end of year position for the financial period 2020/21 seeking approval of the County Council’s treasury management activities and prudential indicators.