Decision details

The Director, Finance and Digital Services provided the Cabinet with the report, which set out the initial assessment of the financial implications for the Council arising from Covid-19.

The Director stated that the WLGA had undertaken a survey, which estimated the implications of the virus from a financial perspective across the 22 Local Authorities in Wales from April-June 2020. The survey estimated the cost across Wales to be £185M and £13.6M for RCT.

The Director drew Members’ attention to section 5.4 of the report, which listed a number of emerging costs which were monitored by the Council. The Director explained that forecasting the financial implications beyond the short term would be dependent upon numerous assumptions which are subject to change on a regular basis but that it was important that the Council continue to attempt to mitigate the financial implications. The Director added that Welsh Government had put in place a number of funding streams to mitigate the financial pressures placed on Local Authorities and had begun to reimburse some of the additional costs incurred.

The Leader thanked the Director for the report and advised that discussions regarding funding from Welsh Government were ongoing and that the LGA was lobbying the UK Government for additional funding. The Leader added that an mid-year budget review would be sensible to ensure there is some resilience, should the Council not be fully funded and stressed the importance of each service area identifying savings in the coming months.

The Cabinet Member for Corporate Services echoed the Leader’s comments, adding that the Quarter 4 Performance and Resources report would be presented to Cabinet in July.

The Cabinet RESOLVED:

1.    To note the financial implications arising from Covid-19 on the Council;

2.    To receive a Mid-Year Budget Review in September alongside an updated and interim Medium Term Financial Plan; and

3.    To note the arrangements for the preparation and audit of the Statement of Accounts for 2019/20.