Issue - meetings

Part A outlines the outcomes of the Medium Term Financial Plan (MTFP) Update Review. Given the uncertainty, volatility and risk of the current financial landscape which has been exacerbated by the COVID-19 pandemic, the review retests the MTFP forecasts and assumptions approved by the Council in February to ensure they continue to be based on the latest available information. The report highlights the expected financial impact of the COVID-19 pandemic on the Council in 2020/21 and highlights the ongoing financial legacy of the pandemic over the medium term period due to the financial scarring impacts identified. It is recommended that the updating of the MTFP continues to be iterative and the underpinning MTFP forecasts and assumptions are retested throughout the year and reported to Cabinet and Scrutiny Committees as part of the Council’s 2021/22 budget setting process. 

The Cabinet is recommended to:

1)    Note the outcomes of the MTFP Update Review particularly the identified COVID19 financial scarring impacts and changes to the MTFP forecasts and assumption approved in February;

2)    Note that the Council’s savings requirement has increased to £23.341m in 2021/22 rising to £34.825m in 2022/23 subject to further review and updates during the financial year.

3)    Note that the earmarked reserves identified as part of the Councils COVID19 strategy of response.

4)    Approve the recommendation to cap the use of earmarked reserves to support the Council’s COVID19 strategy of response at £20m over the medium term period 2021/22 to 2022/23;

5)    Note that the MTFP does not include any forecasts or assumptions for the financial impact of a further wave of COVID19 and/or further national/local lockdown/restrictions; and

6)    Note that due to the significant uncertainty, volatility and risk of the financial landscape  the assessment of the MTFP forecasts and assumptions will continue to be iterative with further updates to the MTFP reported to Cabinet as part of the 2021/22 budget setting process.

Officer contact: Holly Rae/ Jonathan Davies on 0161 474 3014 / 0161 218 1025 or email: holly.rae@stockport.gov.uk/ jonathan.davies@stockport.gov.uk

The Cabinet Member for Resources, Commissioning & Governance (Councilllor Tom McGee) submitted a report (copies of which had been circulated) inviting the Cabinet to consider the outcomes of the Medium Term Financial Plan (MTFP) Update Review including the expected financial impact of the COVID-19 pandemic on the Council in 2020/21.

Councillor McGee reported that the Cabinet was seeking to avoid having an emergency budget, however the council was currently looking at an adverse impact of £56 million which was made up of £23 million of additional expenditure and £32 million of losses, however the council was well placed to be able to manage its way through the current situation and present its budget proposals over the course of the next three months.

Councillor Bailey expressed her thanks to the team of finance officers at the council for their work in putting together the report and throughout the pandemic in ensuring that the council was on a sound financial footing.

RESOLVED – That in relation to the Medium Term Financial Plan (MTFP) Update, the Cabinet has:-

(1) Noted the outcomes of the MTFP Update Review particularly the identified COVID19 financial scarring impacts and changes to the MTFP forecasts and assumption approved in February;

(2) Noted that the Council’s savings requirement has increased to £23.341m in 2021/22 rising to £34.825m in 2022/23 subject to further review and updates during the financial year.

(3) Noted that the earmarked reserves identified as part of the Councils COVID19 strategy of response.

(4) Approved the recommendation to cap the use of earmarked reserves to support the Council’s COVID19 strategy of response at £20m over the medium term period 2021/22 to 2022/23;

(5) Noted that the MTFP does not include any forecasts or assumptions for the financial impact of a further wave of COVID19 and/or further national/local lockdown/restrictions; and

(6) Noted that due to the significant uncertainty, volatility and risk of the financial landscape  the assessment of the MTFP forecasts and assumptions will continue to be iterative with further updates to the MTFP reported to Cabinet as part of the 2021/22 budget setting process.