Agenda item

Cllr E Seward - portfolio holder for resources introduced the report and informed Members that it covered the period of April to September, for a budget that had been set prior to the first Covid-19 lockdown in February. At the time of reporting the Council was noted to be at an underspend, though a deficit of approximately £400k had been projected for the year end. It was reported that subsequent to the fourth tranche of Government funding support, the Council had received approximately £400k, which meant that the Council had theoretically returned to a balanced budget. Members were reminded that the figures outlined in the report were projections, and a further lockdown suggested that they could be subject to change.

Questions and Discussion

     i.  Cllr H Blathwayt asked how NNDC compared with other local authorities in Norfolk. The CTA replied that the Council compared favourably with neighbouring authorities, and that monthly benchmarking continued to take place at both a local and national level. Cllr H Blathwayt congratulated officers for their efforts to ensure that the Council remained financially stable throughout the pandemic.

    ii.   The Chairman noted that the current lockdown had occurred outside of the peak tourism season, and asked whether this would decrease its impact on the Council. Cllr E Seward replied that whilst there appeared to be conflicting patterns of behaviour, there did appear to be lower numbers visiting town centres, which would impact on revenue streams such as parking. The CTA agreed that the lockdown would likely cause a decline in parking revenue, amongst others such as commercial waste, though the impact of this would not be known until the end of the lockdown period.

  iii.   Cllr G Mancini-Boyle referred to the parking income support provided by Central Government, and asked whether this was still available to the Council. Cllr E Seward replied that the loss of income and charges scheme was available until March 2021, and added that in addition to the first tranche of funding, bids would be submitted in the second and third also. It was noted that whilst parking revenues had risen above forecasted levels during the peak season, it had not made up for losses in the first half of the year, which meant that there was still a balance to be recovered. Cllr G Mancini-Boyle asked whether this increased revenue would make up the remaining 30% not covered by the Government scheme. The CE replied that the scheme took into account revenue losses for the full year, therefore if the peak season had not made up losses incurred earlier in the year, then the deficit would be recovered.

  iv.   Cllr N Pearce referred to the Government’s extension of the furlough scheme and asked whether the current tiered response would return once the lockdown was lifted. The CE replied that NNDC was in regular contact with County partners and any arrangements for a return to the tiered system would be determined by the rate of infection, and pressure on health services at the time. He added that the furlough scheme did not directly impact the authority, though it would help businesses in the District that would suffer as a result of limited Christmas activities.

   v.   Cllr P Heinrich referred to recent software license issues with Microsoft, and asked whether the problem could have been foreseen, and whether any further information on the matter was available. The CE replied that a paper had been produced on the issue that would be reviewed by SLT imminently, and would then go to Cabinet. He added that any additional costs incurred would need to be included in the 2021/22 budget. It was confirmed that the paper could be shared with wider Members in due course.

  vi.   The recommendations were proposed by Cllr H Blathwayt and seconded by Cllr W Fredericks.

RESOLVED

1.     To note the contents of the report and the current budget monitoring position;

2.     To recommend to Full Council the release of £247,083 capital receipts to increase the coastal adaption fund; reinvesting proceeds previously received from the sale of land.