Agenda item

The Portfolio Holder for Protecting Core Services began by thanking officers for their work during the Covid-19 pandemic.  He said that officers had protected the core services but there would be a cost to the Council.

The Director for Strategy and Commissioning advised that due to the cost of the pandemic, some Council services may need to be scaled back or paused.  Organisationally, the Council were doing their best to support their communities and businesses and almost a quarter of staff had been re-deployed to assist in areas of high demand.  The demand on services meant the Council would have to review its Medium Term Financial Plan, Financial Strategy and Council Plan.  A draft Recovery Plan was also being prepared. The Recovery Plan also linked with the work being completed by the Heart of the South West relating to economic recovery.

The Portfolio Holder for Finance and Legal said that the loss of income to the Council was an issue.  He said the estimated losses would be around £10m in 2020/21 whilst the support from the Government needed to be clarified and they would be pressed through the Local Government Association for further funding.  He said that there were reserves held against the risks.  The revenue reserve could be used and also the reserve for the Commercial Strategy.  If the NNDR Retention Scheme were to be set back by one year then approximately £2m would be realised into the following year.  The Fairer Funding Review had also been held back and could be brought forward but clarification from the Government was needed.  Budget and spend monitoring would be stepped up and a new budget would be proposed if required.

In response to questions from Members, the Portfolio Holder for Finance and Legal and the Section 151 Officer advised:

·         There was an agreement for SCC to pay £150,000 towards SSDC homelessness costs but the funding had yet to be received. 

·         SSDC had a legal obligation to make precept payments to Town and Parish Councils and they had to be paid within the calendar year.  There were no issues with cash flows but the ability to defer was highlighted in the report.

·         A question regarding the commercial investments would be answered individually.

During discussion the following points were made by Members:-

·         Investing in infrastructure of regeneration projects during a recession was a good way to boost the health and well-being of residents.

·         The report should be read in full and individual paragraphs should not be taken out of context, as parts of the press had done.

The Chief Executive clarified that if the Council were required to draw on their reserves to cover the cost of their response to Covid-19 then the money may not be there for the regeneration projects.  But the Council was working with the HotSW LEP and Government to bring the projects forward more quickly as they were recognised as part of the economic recovery.

At the conclusion of the debate, the Chairman thanked officers for their comprehensive report and for responding to questions.  Members unanimously agreed the recommendations of the report.