Agenda item

To consider the Medium Term Financial Strategy – Mid Year Update report.

Councillor Hargreaves, as Portfolio holder for Finance and Budget introduced the report. He said that the figures had been produced a few weeks ago and were the best estimate of the Outturn. He said there was a reserve allocation of £500k for the Covid- 19 emergency and that the Covid- 19 impact was showing a net loss of £800k, net of Government assistance but that because commercial investments had come on stream quickly the shortfall could be covered.

He said that in the longer-term the sum of £475k had been assumed for Government transitional funding and that further assumptions had been made that the New Homes Bonus would also continue for a further year. He said that fees and charges were still under review but that the good news was that the Council was on track to be self-funding. He also highlighted the other reserve allocations of £1m for climate change, £450k towards sports facilities, £1m towards business recovery and £1.5m towards a waste depot. He also stated that as the Council now relied on its investment income, it was prudent to set aside monies in case of tenant failure at any one of the commercial assets and that the £1.06m in the Funding Reserve would be transferred to the new Investment Income Protection Reserve.

Members discussed the £1m Business Recovery Reserve and how seed monies could be utilised. The Stansted Business Forum had indicated that it was willing to participate in any discussions and Councillor Reeve indicated that works had already commenced to consider the use of the Business Recovery Reserve.

Councillor Sell referred to the Sports Facility Reserve of £150k per annum and was provided with information as to how to bid for grant monies. The Leader said that some monies would likely be allocated towards the 3G pitch at the County High School, subject to formal approval and that a possible project was being looked at in Dunmow and Councillor Armstrong would welcome proposals for the Stansted area.

In response to questions about the impacts on Council Tax and Business Rates, the Director- Finance and Corporate Services said that most affected businesses were on a business rates holiday and that most council tax payers had received a two months holiday at the start of the financial year. He said that no enforcement was currently taking place and there would inevitably be a fall in income but that half-year figures would be available from 1 October 2020.

In response to a question about the Economic Development team, the Chief Executive outlined the staffing arrangements in place to assist in taking forward the Business Recovery Reserve.

The Chair said that the financial figures were impressive and asked a question about the projected gross service figures and the 2% increase in Council Tax along with the frequency of the Pension Fund deficit payments.

The Assistant Director – Resources explained that the projected gross service figures were largely due to changes in the Local Plan budget. She also said that she would provide Members with additional information in respect of Council Tax. She also explained the yearly breakdowns of the Pension Fund deficit payments.

Members discussed the Governance Review Working Group and the delays in reviewing governance arrangements. Members had been informed that resources were not currently available to support the work of the Group but it was noted that the Council’s financial position was better than envisaged.

Councillor Lees said that reviewing governance arrangements had been a manifesto commitment and that there had been a hiatus largely because of the Covid- 19 pandemic and that priorities lay elsewhere. Recommendations originally due in March 2021 would fall back to March 2022.

The Chair stated that this had been a very impressive achievement in completely overhauling the MTFS and the financial robustness of the Council.

Councillor LeCount proposed a motion thanking the Director – Finance and Corporate Services, the Assistant Director – ICT and Facilities, the Assistant Director – Resources, the Assistant Director – Corporate Services and their teams in addition to Councillor Hargreaves for what they had achieved in the last year.

Councillor Sell seconded the motion.

                RESOLVED to approve the motion. This was unanimous.