Agenda item

To consider the report of the Chief Officer Financial Services which provides an update on the current position regarding the impact of the Coronavirus pandemic upon the Council’s 2020/21 Revenue Budget.

(Report to follow)

The Chief Officer, Financial Services submitted a report providing an interim briefing on the forecast position for the Council when considering the scale of the financial challenge faced by the Authority in terms of 2020/21 and future years due to the COVID-19 pandemic.

With the agreement of the Chair, the submitted report had been circulated to Board Members as a late item of business prior to the meeting for the reasons as set out in section 4.5.2 of the submitted report, and as detailed in Minute No. 166.

In introducing the submitted report, the Executive Member for Resources highlighted the scale of the financial challenge being faced by the Council, which it was emphasised remained an evolving picture.  With regard to the recommendation that the Board write to the Government to ask for financial assistance to enable the Council to fulfil its requirements, it was highlighted that it was proposed that in addition to this, Government would be asked to provide support through the proposals, as set out within section 3.5.2 of the report.

Responding to a Member’s enquiry regarding the options available to the Council moving forward, the Board was advised that a further report was scheduled to be submitted to the Board in June presenting the financial position over the next 2 years, which would also provide detail of the options available to the Council if further funding was not forthcoming from Government. Also, responding to a Member’s enquiry, the Board noted that the issuing of a ‘Section 114’ report would only be undertaken as a final resort.

In response to a Member’s enquiry, it was undertaken that Executive Members would continue to briefed on relevant matters between this Board meeting and the next scheduled meeting on 24^th June.

Members highlighted the need for local Government to continue dialogue with the Treasury in order to explore all potential options available to financially assist Local Authorities during this time and moving forward.

A Member requested an update on the Council’s commercial investment portfolio during this challenging period, arising from the national press coverage given to the issues that some Local Authorities were experiencing in this area. In response it was noted that currently there were no specific issues to report on such matters.

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 agreement be given for Executive Board to write to Government to ask for financial assistance to enable the Council to fulfil its requirements to deliver services to the residents of Leeds, and that in addition to this, Government support be sought on the proposals, as set out within section 3.5.2 of the report;

(c)  That it be noted that a further report is to be submitted to Executive Board in June 2020 detailing the impact over the financial years 2020/21 and 2021/22 of the COVID-19 pandemic, together with an updated forecast budget position for 2021/22.