Home > Issue

Issue - meetings

Emergency Budget

Meeting: 21/09/2020 - Cabinet (Item 66)

66 Croydon Renewal Plan and amendments to the 2020/21 General Fund Budget pdf icon PDF 680 KB

Officer: Lisa Taylor

Key decision: no

Decision:

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

 

RESOLVED: To

 

1.    Note the latest forecast revenue budget overspend of £50.3m detailed in section 3 of the report.

 

2.    Approve the savings options of £27.9m listed in section 5 of the report to reduce the forecast overspend this year, and amend the 2020/21 budget to include the additional in year savings.

 

3.    Agree that a formal approach is made to the Ministry of Housing, Communities and Local Government to seek a capitalisation direction to enable the 2020/21 budget to be balanced.

 

4.    Agree to the development of Croydon’s Renewal Plan, to deliver a sustainable balanced budget over the medium term, and to provide an update to Cabinet in November 2020.

 

5.    Note the in year review of the Capital Programme and agree that a review of the future Capital programme is undertaken and to provide an update to Cabinet in November 2020.

 

6.    Agree that a strategic review of the Council’s group of companies and entities is undertaken and to delegate to the Executive Director of Place the scope and terms of that review, and to provide an update to Cabinet in November 2020.

 

RESOLVED: To recommend to Council to

 

1.    Note the latest forecast revenue budget overspend of £50.3m detailed in section 3 of the report.

 

2.    Approve the savings options of £27.9m listed in section 5 of this report to reduce the forecast overspend this year, and amend the 2020/21 budget to include the additional in year savings.

 

3.    Agree that a formal approach is made to the Ministry of Housing, Communities and Local Government to seek a capitalisation direction to enable the 2020/21 budget to be balanced.

 

4.    Agree to the development of Croydon’s Renewal Plan, to deliver a sustainable balanced budget over the medium term, and to provide an update to Full Council in November 2020.

 

5.    Note the in year review of the Capital Programme and agree that a review of the future Capital programme is undertaken and to provide an update to Full Council in November 2020.

 

6.    Agree that a strategic review of the Council’s group of companies and entities is undertaken and to delegate to the Executive Director of Place the scope and terms of that review, and to provide an update to Council in November 2020.

Minutes:

The Leader of the Council stated that the report was the council’s immediate response to the Q1 outturn. He believed that tough decisions were required as the council needed a significant response to the financial position; with the first tranche of decisions set out in the report. Members were informed that the report represented only the first phase of the response to the situation with the option of a capitalisation direction from MHCLG being the preferred long-term solution.

 

The Cabinet Member for Finance & Resources informed Members that it was recognised that there were immediate financial pressures facing the council in April/May 2020 and the Finance Review Panel was convened to review the immediate measures programme. Despite this programme, it was recognised that changes were not taking place at the pace required and in recent weeks there had been a renewed drive to deliver change at pace.

 

A staffing review had taken place as part of the immediate measures which had resulted in the deletion of 400 posts. It was recognised by the Cabinet that this had been a particularly difficult time for staff; however, the Cabinet Member stated that there had been a full consultation and the result had been that the majority of posts deleted had been vacant posts.

 

The Cabinet Member noted the council had been able to use its relationship with the local NHS, had reviewed contracts and made savings where possible and had sought to reduce interest costs in relation to the General Fund capital programme. Members were assured that the council was continuing to review opportunities for in-year savings and had made the decision keep closed services which had not yet been reopened following lockdown. Additionally, it has been recognised that the council had a number of companies and other subsidiaries and that an independent review of all these would be undertaken.

 

The Cabinet meeting was advised that the council had been holding informal discussions with the MHCLG on financial support in the form of a capitalisation direction which it was hoped would give the council time to deliver a sustainable budget for the council. A formal submission for this support was due to be with the MHCLG in November 2020.

 

The Director of Finance, Investment and Risk informed Members that the report set out the General Fund position and the work required in year and in future years to enable the council to have a sustainable and balanced budget. It was recognised that local government had been at the forefront in responding to the pandemic and that while money had been received from government this had not been sufficient. However, the challenge of responding to the pandemic had not been unique to Croydon rather that the challenging in-year savings of £40m not being achieved had been a major factor in the position the council was facing.

 

Members were informed that it was the Director of Finance, Investment and Risk responsibility to ensure a balanced and deliverable budget was presented to Members for decision and  ...  view the full minutes text for item 66