Agenda item

LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW

(Papers relied on to write the report, which do not contain exempt information and which are not published elsewhere)

2019/20 Budget report and in year budget monitoring reports.

Contact Officer, telephone number and email: Duncan Ellis, Head of Finance and

Assets, 01263 516330, duncan.ellis@north-norfolk.gov.uk

Cllr E Seward – Portfolio Holder for Finance introduced the report, and referred Members to the income forecasts on page 42. He noted that a budget surplus of £430k had now been projected for the 2020/21 financial year, on the basis that Central Government funding reviews had not been completed, hence funding would remain unchanged from the current year. It was reported that deficits were still on the horizon, but legacy payments for new homes bonuses would continue to help. It was suggested that Members should remain cautious of the surplus, as it was based on models and could change once the financial settlement was known.

Questions and Discussion

The Chairman reminded Committee Members of the importance of the MTFS, then asked to what extent it reflected the financial burden of the new Corporate Plan, and how developed its financial forecasts were. The HFAM replied that officers were working on the delivery plan, and once complete, they would have a clearer picture of the financial burden of the Corporate Plan. He added that the MTFS remained at this stage a forecast, and would remain so until February, when the settlement figures were known. It was stated that work was ongoing on efficiency savings and income generation, and that the Council had reserves to cover short-term funding deficits if required. Cllr E Seward noted that he was anxious to identify savings and begin generating income for the Council where possible. The Chairman asked that the Committee be notified of any emerging trends in the Council’s finances as soon as possible, so that any issues could be investigated.

Cllr G Mancini-Boyle asked if there were any changes regarding the NHS business rates appeal, to which the HFAM replied that there had been no change, but the outcome was expected in February. He added that the Council did have provisions in place for the worst case scenario, and that the reserves would be held until the final outcome was known. It was stated that if the case was won but appealed, then a risk assessment would be completed.

Cllr N Housden noted that a Central Government budget was expected in February, and asked if this would have any impact on the delivery of the Corporate Plan. The HFAM replied that it was generally expected that any additional funding in the budget would either go to the NHS or social care, neither of which would bring any significant benefits for District Councils.

The Chairman stated that it was hard to overstate the importance of the MTFS, as it set out the Council’s finances for the next four years. The DS&GOS informed Members that further financial training would be provided in January prior to the Committee scrutinising the draft budget.

Cllr N Housden referred to the recently awarded waste contract, and asked whether the related costings had been factored into the report, and whether there would be any additional data to add. The HFAM replied that the figures would be updated in the budget, and that the current figures within the MTFS were predicted.

Recommendation one was proposed by Cllr N Pearce and seconded by Cllr P Heinrich. Recommendation two was proposed by Cllr G Mancini-Boyle and seconded by Cllr H Blathwayt.

RESOLVED

1.    That Members consider and note:

a) The current high-level financial forecast for the period 2020/21 to 2023/34;

b) The current capital funding forecasts;

2.    The revised reserves statement as included at Appendix 2 to the financial strategy