Issue - meetings

Officer: Lisa Taylor

Key decision: no

The Leader of the Council delegated authority to the Cabinet to make the following decisions:

RESOLVED: To note

1.    The work undertaken to date under the auspices of the Finance Review Panel and their plans for further development; and

2.    The progress and plans for setting a budget for 2021/22 and the development of a three-year Medium Term Financial Strategy.

The Cabinet Member for Finance & Resources noted that at the time the budget for 2020/21 was set, a commitment had been made to set a new Medium Term Financial Strategy (MTFS). Work had started pre-Covid, however this had to be restarted to ensure the MTFS reflected the long-term impact of Covid-19.

Cabinet noted that there was a budget gap of £79m over the following three years, however a sustainable and resilient plan was being drawn up which would address this situation at pace. Members were assured that 2021/22 budget setting work was taking place with budget development meetings occurring.

The Director of Finance, Investment and Risk stated that the report provided an update on the work of the Finance Review Panel and officers to develop a sustainable MTFS. Significant budget gaps were anticipated, however it was hoped that approval would be given for a capitalisation direction which would enable the council to address the financial situation over a three year period.

Members were assured that active management of the council’s finances was in place and a series of budget development meetings were taking place which sought to identify cost reductions and increased income. It was further confirmed by the Director of Finance, Investment and Risk that an updated MTFS report would be taken to both the Scrutiny & Overview Committee and Cabinet later this year.

The Interim Chief Executive reiterated that it was important that the council demonstrated to the MHCLG its commitment to delivering services in coming years within the funding envelope available to support its request for a capitalisation direction.

In response to Member concerns, the Leader stated that an independent review of Brick by Brick would be undertaken as part of the strategic review of all companies and other entities and the outcome would be shared with all councillors. In the meantime, no additional loans to Brick by Brick were anticipated. The Leader further confirmed that the submission to MHCLG for a capitalisation direction would cover the next three years and would support the council to build a sustainable future.

The Leader pointed to the decisions the Cabinet had made as part of the Croydon Renewal Plan report as evidence of a commitment to tackling the financial position and making the necessary savings. Members were advised that chief officers were being asked to provide assurances that the savings identified would be delivered and both Cabinet Members’ and chief officers’ focus was on delivering those savings.

The Leader of the Council delegated authority to the Cabinet to make the following decisions:

RESOLVED: To note

1.    The work undertaken to date under the auspices of the Finance Review Panel and their plans for further development; and

2.    The progress and plans for setting a budget for 2021/22 and the development of a three-year Medium Term Financial Strategy.