Agenda item

To consider the report of the Chief Officer (Financial Services) which provides an update regarding the Council’s financial position in respect of 2020/21 and 2021/22, taking into consideration the current position regarding the financial impact upon the Authority arising from Coronavirus pandemic.

The Chief Officer (Financial Services) submitted a report which provided an update regarding the Council’s financial position in respect of 2020/21 and 2021/22, taking into consideration the current position regarding the financial impact upon the Authority arising from Coronavirus pandemic.

In introducing the report the Executive Member for Resources highlighted the scale of the budget shortfall which was currently forecast, with it being noted that the Council continued to be in dialogue with the Government on such matters, including the need for further support.

In considering the submitted report, the Board discussed a number of key issues, including:-

·  Whilst recognising the support which had been provided by the Government to date, emphasis was placed upon the unprecedented scale of the financial situation being faced by Local Authorities and the need for further support to be provided, with it being noted that a co-ordinated approach was being taken by Local Authorities and the Local Government Association in communicating such concerns to Government;

·  In acknowledging the possibility that a budgetary shortfall may still remain even with the provision of further support from Government, Members discussed the need for further discussion to take place with Government around the possibility of being able to address the Council’s financial position over a longer term and with greater flexibility;

·  Members discussed matters relating to the current level of reserves held by the Council when compared to other Local Authorities; the longstanding budgetary approach which has been taken in Leeds; the Council’s track record in consistently delivering balanced budgets; the nature and size of the economy in the city as a whole and the role which the Council continued to play within that;

·  The key role which has been played by Local Authorities throughout the pandemic was highlighted, and the need for that key role to continue and be appropriately supported by Government, with emphasis also being placed upon the importance of the Council being agile enough to adapt and respond to the evolving needs of local communities and the economy as we progressed through the different stages of the pandemic.

RESOLVED –

(a)  That the position, as outlined in the submitted report by the Chief Officer (Financial Services) concerning Leeds City Council’s financial position as a consequence of the COVID-19 pandemic, be noted;

(b)  That it be noted that the Government has been written to asking for further financial assistance;

(c)  That it be noted that if further assistance from the Government is not forthcoming or is insufficient to address the scale of the financial overspend as detailed within the submitted report, then an Emergency Budget would be considered by Full Council in the Summer;

(d)  That if the actions that the Council can take on this issue are in the professional opinion of the Chief Officer (Financial Services) insufficient to reduce the Council’s cost base to enable there to be sufficient resources to fund services, then it be noted that a Section 114 report would be issued;

(e)  That the revised estimated budget gap for 2021/22 and the actions being taken to address this position, as detailed within the submitted report, be noted;

(f)  That it be noted that an updated Medium Term Financial Strategy is to be bought to Executive Board in September 2020 which will provide an update on the Council’s financial position covering the period 2021/22 – 2025/26.