Agenda item

2020/2021 Q2 Financial Monitoring and Medium Term Financial Plan - Update

Report by the Director : Governance and Partnerships


The Director: Governance and Partnerships submitted a report, which provided the Cabinet with an update on the Council’s in-year financial position,
considered an updated estimate of the specific impact that Covid-19 was having on the Council’s financial plans and set out the Council’s updated medium term financial planning position.


The Director in her report explained that the Medium Term Financial Plan represented an amalgamation of financial and non-financial assumptions which formed the basis of how much resource the Council expected to have available to invest in its priorities and to ensure it continued to meet local need effectively. Cabinet had also received several reports providing comprehensive financial information in respect of Covid-19. These had covered a range of issues including the action it has taken to date to keep its residents safe and well, the financial impact together with the additional and Covid-19 specific funding provided by the Government, and a framework setting out the Council recovery and renewal plan set in the context of the Government’s recovery strategy. This report considers the financial position to date, which further to the previous update report received by Cabinet in September 2020 (minute 1383 refers), confirmed the case that relative high levels of uncertainty was still inherent together with the possibility that the nature of the pandemic would likely remain volatile.


During quarter three rates both locally and nationally continued to increase leading to North Lincolnshire moving into the second level of tiered restrictions at the end of October 2020 followed by national restrictions coming into force on 5 November 2020. The additional restrictions locally and nationally meant that the council had once again reacted and responded to meet business continuity need and adapted delivery models to comply with regulations.The Council would continue to take whatever action necessary to ensure it continued to meet the needs of its residents and businesses at a very challenging time and lead the area through the pandemic. This included redistributing resource, as necessary.


The Director stated that the purpose of this report was to take stock of the in-year financial position based on the position prior to the most recent announcements regarding national lockdown and sought to provide an update on the financial planning process. A summary explanation with supporting appendices where provided for the following –


·       Revenue 2020/2021;

·       Capital 2020/21;

·       Reserves;

·       Budget Adjustments;

·       Treasury Management, and

·       Medium Term Financial Plan.


Resolved – (a) That the revenue and capital budget monitoring position for 2020/21 as set out in Appendix 1 of the report be noted; (b) that the current modelling of financial planning assumptions as set out in the medium term financial plan update in Appendix 2 of the report be noted; (c) that the revenue budget adjustments approved under delegated powers and the revised budget position for 2020/2, as summarised in Appendix 3 of the report be noted; (d) that the revised capital investment programme 2020/23, set out at Appendix 4 be approved; (e) that the progress against the approved Treasury Management Strategy in Appendix 5 be noted, and (f) that the Director and her finance team be thanked for their continuing hard work during a challenging time.



Supporting documents: