Issue - meetings

To consider a joint report of the Leader of the Council and the Cabinet Member for Resources, Commissioning and Governance.

Within this report we outline the latest update on our approach to responding to the unprecedented uncertainty outlined within the medium-term financial plan (MTFP) update presented to the Cabinet meeting in October . We have previously stated that our ambition remains on delivering impactful and outcomes-focussed transformational change for communities and businesses across Stockport. This remains our commitment and outlined within this latest update is further detail of how we will seek to ensure a resilient budget which supports the Borough’s recovery from the significant financial impact of the pandemic and enables us to deliver our longer-term ambitions.

Specifically, this report includes a series of proposals outlined in Section 5 to support the balancing on the Council’s 2021/22 Budget. These proposals were presented to all Scrutiny Committees at the December meetings to ensure an open and transparent consultation and scrutiny process.

The Cabinet is recommended to:

·         Note the details of the report including the announcements made by Government since October and in the 2020 Spending Review;

·         Approve the update to the MTFP savings requirement following the 2020 Spending Review;

·         Approve the saving proposals set out in Appendix 1 to support the balancing of the Council’s 2021/22 Budget to provide a stable financial platform for the transformation programme linked to One Stockport needed to support the Council’s recovery and address the medium term financial challenge;

·         Note and comment upon as appropriate, the financial forecasts for 2020/21 to 2022/23, and the key issues to be addressed in formulating a response to the financial challenges facing the Council

·         Note that the forecasts and assumptions underpinning the MTFP will continue to be reviewed to ensure they remain robust and resilient as part of the Council’s 2021/22 budget setting process. A further update of the Council’s MTFP will be presented to Cabinet in February prior to the Budget Council meeting;     

·         Note the MTFP revised forecast cumulative savings requirement of £8.115m in 2021/22 rising to £26.802m in 2022/23; and

·         Take the final steps necessary to propose a balanced budget for 2021/22 to the Budget Council meeting on 25 February 2021.

Officer contact: Jonathan Davies / Holly Rae on telephone number 07800 617 550 or alternatively email on jonathan.davies@stockport.gov.uk / holly.rae@stockport.gov.uk   

The Deputy Leader of the Council and Cabinet Member for Resources, Commissioning & Governance (Councillor Tom McGee) submitted a report (copies of which had been circulated) outlining the latest update on its approach to responding to the unprecedented uncertainty outlined within the medium-term financial plan (MTFP) update presented to the Cabinet meeting in October, and detailing a series of proposals outlined in Section 5 of the report to support the balancing of the Council’s 2021/22 Budget.

Councillor McGee stated that the impact of the ongoing Covid-19 pandemic had meant that the Council had made significant changes to the way that it operated over the past year.  However, the announcements over the past week in relation to the creation of an additional fourth tier of restrictions and the extension of the furlough scheme suggested that economic recovery may take longer than originally anticipated.  As a consequence, Councillor McGee stated that in addition to the schedule of recommendations contained within the report, he wished to ask the Cabinet to give approval to the inclusion of a further resolution relating to an agreement that it receives a further report at a future meeting of the Cabinet examining whether it was necessary or appropriate to move earmarked reserves into general balances.

RESOLVED – That:-

·         the details of the report including the announcements made by Government since October and in the 2020 Spending Review be noted;

·         the update to the MTFP savings requirement following the 2020 Spending Review be approved;

·         the saving proposals set out in Appendix 1 to support the balancing of the Council’s 2021/22 Budget to provide a stable financial platform for the transformation programme linked to One Stockport needed to support the Council’s recovery and address the medium term financial challenge be approved;

·         the financial forecasts for 2020/21 to 2022/23, and the key issues to be addressed in formulating a response to the financial challenges facing the Council be noted;;

·         that the forecasts and assumptions underpinning the MTFP will continue to be reviewed to ensure they remain robust and resilient as part of the Council’s 2021/22 budget setting process be noted.;    

·         the MTFP revised forecast cumulative savings requirement of £8.115m in 2021/22 rising to £26.802m in 2022/23 be noted;

·         approval be given to take the final steps necessary to propose a balanced budget for 2021/22 to the Budget Council meeting on 25 February 2021; and

·         it be agreed to receive a further report to a future meeting of the Cabinet examining whether it was necessary or appropriate to move earmarked reserves into general balances.