Agenda item

The Panel are to receive the Financial Performance Report 2020/21, Quarter 1.

With the aid of a report by the Chief Finance Officer (a copy of which is appended in the Minute Book) the Council’s financial performance for quarter 1 of 2020/21 was presented to the Panel.

In summarising the report, the Chief Finance Officer informed the Panel that the Council had experienced a loss of revenue as well as extra expenditure as a result of the pandemic and subsequent lockdown. There would be compensation from the Government but the details were yet to be finalised. The accuracy of the budget estimates were dependent on whether there would be a second wave of Covid-19 and reintroduction of restrictions.

Members were informed that the estimated £2.9m deficit was not a bad as originally feared. The Council had been able to assist many residents and had provided support packages for businesses. The Council had also received emergency funding to cover unexpected expenditure.

Councillor Cooper-Marsh asked what the impact of a second lockdown or local lockdown would be upon the finances of the Council. The Panel was informed that the impact would be dependent on the support the Council would offer to vulnerable residents and whether there were any further restrictions on leisure services, which would impact on One Leisure.

A concern was raised by Councillor Cooper-Marsh regarding the impact of the Covid-19 pandemic on next year’s Council Tax and particularly whether it would be likely to rise to cover lost income. In response, the Panel was reassured that Council Tax could not rise any further than the statutory maximum.

In following on, Councillor Wells asked whether the budget forecast included any predicted future losses in relation to One Leisure income particularly as a result of any capacity limits that might have to be implemented. In response, Members were informed that the forecast included future losses and that estimates were made based on a slow recovery. However, there was a compensation scheme under which leisure facilities could claim 75p for every £1 of income lost.

Councillor Dew questioned whether the perceived lack of daytime bookings was accounted for in budget estimates. The Chief Finance Officer stated that estimates were as accurate as they could be and would therefore account for variances in attendance.

The discussion moved onto the Commercial Investment Strategy (CIS). Councillor Roberts asked what impact the pandemic would have on it and any future investments. The Panel was reassured that rental income was higher than the same period the previous year despite the fact that the council had not added to its acquisitions. In addition, the Executive Councillor confirmed that it was unlikely that there would be any CIS purchases in the current economic climate.

The Council’s social obligations in its role as a landlord of CIS properties was raised by Councillor Wakeford. The Panel was informed that under the ICS the Council operated on a commercial basis but that it was aware of its social obligations. These were met through engagement with tenants and the Commercial Estates Team worked hard in establishing which of them required assistance.

Councillor Chapman enquired whether the capital value of the Council’s CIS properties had fallen or was expected to fall. It was confirmed that some values had fallen but that the Council did not invest in the properties for their capital values but rather for the rental revenues.

Councillor Chapman then raised the issue of the reintroduction of car parking charges and asked whether there was scope to reduce the charges in order to assist retail in the District’s market towns. In response, Members were informed that some retail areas were suffering before the pandemic and that the important aim was to diversify town centres as studies showed these fared better than those that offered a purely retail experience.