The Leader introduced the report which gave an update on the Coronavirus financial issues.  He explained that Central Government had said that local government should act as an agent for the delivery of emergency services during the pandemic and Councils were called upon to set up community support hubs, facilitate rough sleepers and assist businesses in the grant support scheme.  The Leader said that the affect on Council budgets was acknowledged by Central Government and whilst substantial financial support had been given, it was not enough to meet the losses already incurred.  He drew attention to paragraph 2.6 on page 7 of the report which highlighted the allocation received so far by SBC, and he said that additional funding from Central Government in the future could not be relied upon, but would be a bonus.

In drawing attention to paragraph 2.3 on page 6 of the report, the Leader said that the total estimated impact on SBC’s base budget was £4.1m and that if that level remained, the agreed revenue budget could be delivered with the use of Government grants and some allocated reserves. However, he warned that SBC needed to be disciplined in the management of the revenue budget as there was uncertainty over future income from an economic downturn. He referred to the principles set out in paragraph 2.4 on page 6 of the report and said that the Council also needed to manage and consider the budget of future years.  The Leader said that reserves could not be used to continually sustain the base budget and the Council should not deviate from the medium term financial plan agreed in 2019. 

The Leader said that monthly budget monitoring would continue to be carried out as outlined in paragraph 2.9 on page 7 of the report, and concluded by acknowledging the work carried out by staff on Business Rate Grants, the Local Council Tax Support scheme and in making the Council financially viable.

Resolved:

(1)  That the report be noted.