Urgent update and recommendation added 21 September 2020.

The Leader introduced the report which set out the revenue and capital projected outturn position for 2020/21 as at the end of June 2020.  He said that whilst the current financial position was more optimistic than it had been, the Council faced financial challenges and should continue to be cautious.

The Leader said that the projected overspend from April to June 2020 had reduced from £4.1m to just under £2.6m. He highlighted the variance in table 1 on page 6 of the report which was mostly due to additional housing costs and losses of income and costs in parking and planning.  The Leader drew attention to table 3 on page 7 of the report which gave an overall overspend of £3.29m, reduced to £1.225m with Government grant assistance, but he stressed it was still a serious impact.

In drawing attention to table 4 on page 9 of the report, the Leader highlighted the financial support given to Faversham Swimming Pool and Swale Community Leisure and he said that the expected Government support for loss of fees and charges of £650k would decrease the revised forecast to £700k.  The Leader stressed that the figures were a projection, and the outcome could be worse.  He warned that there would be serious financial challenges in 2020/21.

The Leader spoke about the funding received from Government and explained that the Council only received £76k in the first grant, but then received a further £1.5m and £318k, totalling £1.895m altogether.

Finally, the Leader referred to the urgent update which sought Cabinet agreement that Council continued to participate in the Kent Business Rates Pool.  He highlighted the benefits of the Council remaining in it.

A Member spoke of the importance of supporting recreational facilities and urged other Members to lobby to give more financial support to the leisure industry during the Covid-19 crisis.

Resolved:

(1)  That the total projected revenue overspend of £2,555.000 be noted.

(2)  That the projected capital underspend of £6,400 and expenditure of £2,075,031 as detailed in paragraph 3.30 and Table 10 appendix I be noted.

(3)  That the transfer of £1m from the Business Rates Volatility Reserve to the Special Projects Fund as detailed in paragraph 3.26 be approved.

(4)  That the transfer of £100k from the General Fund to the Pension/Redundancy Fund as detailed in paragraph 3.26 be approved.

(5)  That the additional Government funding received by the Council in response to the coronavirus pandemic be noted.

(6)  That the council should in principle participate in a county wide business rates pool but delegate to the Chief Financial Officer in consultation with the Leader and Cabinet Member for Finance the authority to change this decision if there was a significant change in circumstances.