To consider a report by the Director for Digital and Resources, copy attached as item 10
Minutes:
The Committee had a report before it attached as item 10, a copy of which had been circulated to all Members, a copy of which is attached to a signed copy of these minutes. The report before members updated members on the impact of the pandemic on the Council’s budgets in the current financial year briefed members on the possible impact on future years of the issues identified and to propose a budget strategy for the development of the 2021/22 budgets.
The Head of Finance was at the meeting to present the report and recommendations
A Member asked the following question: If we do enter a second wave of Covid in the winter, with a possible second lockdown, what will be the specific key financial challenges of a second-wave be to the Council finances? Members were told that it was difficult to answer as much would depend on the actions taken by government and the effectiveness of the track and trace programme - however it could be seen from the first lockdown that there would be significant impacts on car parking income and income streams from local businesses (Trade Waste). However, the Government has now committed to funding 75p in the £ of any losses from fees and charges so to a certain extent the financial risk will be mitigated by government funding for lost income.
A Member asked the following question: The report talks of clear focus on driving efficiency. Is it time to have a good review on outsourced services to see if they are fit for purpose and whether we could run our own and sell out to other business and generate income back into the Council? Members were told that the Councils had very few outsourced services - most services are run in-house (waste, street sweeping, grounds maintenance...). There Were some smaller services outsourced, internal audit for example, where due to the size of the organisation, it is not possible to attract the full range of audit expertise needed within a small cohort of staff (e.g IT, contracts …) and so contracting out enables the Councils to access the full range of audit services needed.
A Member asked the following question: The Corporate Landlord Model is a wide programme of improvements to how the Council manage, invest and operate in our properties. which is proposed for managing our property estate has recommended £125,000 is released to help plan a disposals programme and appraisal of investments and sites. Can we be advised what this money will be used for? Is it to fund staff or for a consultant or to pay for appraisals? Members were told that the sum of £125,000 will be used to pay for a mixture additional staffing resource within the estates team as well as costs incurred in proceeding with disposals. These other costs are likely to include, agency or auctioneer fees, advertising costs, as well as costs which may add value to properties in advance of disposal for example planning advice and consents, architectural feasibility studies, refurbishment or enabling works to drive value from the estate, in order to meet best consideration from the sale of the councils’ assets.
A Member asked the following question: The report clearly outlines the longer term impact of Covid in the medium term in a number of areas, such as council tax support, commercial income and commercial property. Is it possible at this stage to get a sense of the combined financial impact of the long term financial costs of the first Covid period combined with any potential emergency costs coming from a second phase? The committee was told that This was Very difficult to know at this time, however the Government had committed to funding the costs of the emergency and have now guaranteed a level of support for lost income.
A Member asked the following question: Item 5 - page 71 Emergency spend - With many redundancies announced do we feel that this service may be needed again soon or have the newly formed foodbanks/community groups fulfilled this need? The covid-19 community response remains in operation, albeit at a scaled back version whilst demand has been low during the release of the lock down. Emergency food provisions were stopped - as planned - after 12 weeks, and the councils were now working with food banks and food providers and directing all referrals to them. The Councils plans were not to reopen emergency food provisions, but to continue to work with the newly formed food partnership. New funding had been announced for WSCC for support from August for an additional 12 weeks and there was work undertaken to determine any additional support that might be required for our communities.
A Member asked the following question: Where can Councillors view the list of assets owned by the council? Members were told that the information could be found on the Councils’ website.
Resolved: That the report be noted
Supporting documents: