Agenda item

The Cabinet considered a report of the Corporate Director of Resources which provided an update on the development of the 2021/22 budget and the Medium Term Financial Plan (MTFP(11)) (for copy see file of minutes).

Councillor Napier, Deputy Leader and Portfolio Holder for Finance, spoke of the challenges in setting the budget for 2021/22 with uncertainty over the comprehensive spending review, and, future Covid-19 costs.  Cabinet noted that the budget and the medium term financial plan assume a cash-flat grant settlement, however, the Council will be required to continue to make savings, due to the increased cost pressures across all services.

Councillor Napier highlighted the prudent financial management which has allowed for a budget support reserve and he added this will be increasingly important for managing the budget over the forthcoming year, with savings of £12.8 million forecast to be required to balance the 2021/22 budget.  Future Cabinet reports will include details of the potential impact of Covid-19 on income and expenditure and Councillor Napier urged government to provide the resources required to support local communities and businesses in the years ahead.

The Chair, Councillor Henig, Leader of the Council, said the possibility of receiving a one-year settlement, later in the year, would lead to further complications for budget planning and he thanked the officers involved in this work, in such difficult circumstances.  He added he had written to the government, on behalf of the Council, and the Association of North East Councils to seek clarity on a number of issues and Cabinet will be informed of the response in due course.

Resolved:

That the recommendations in the report be approved.