Decision details

Cabinet considered a report of the Director of Corporate Resources regarding the financial impact of the Covid-19 crisis.

With the agreement of the Chairman, Councillor House addressed Cabinet, highlighting the promises of the Secretary of State to provide financial support, the severe impact across local government and urging the County Council to share financial data with the LGA to contribute to the national picture.

The report was introduced and it was explained that it gave the first snapshot of the financial consequences of the crisis. It was confirmed that data would be provided to MHCLG and shared with the LGA. The unfunded three month shortfall of £21.6 million was highlighted and it was noted that this was expected to increase by £18.5 million for each subsequent month. Members heard that if these cost pressures remained unfunded then the impact on the County Council would have to be met from reserves, including from the pension fund windfall. The impact on the markets of a recession made further windfalls from the pension fund less likely. These pressures came on top of the existing financial stresses planned for in the Transformation programme.

Cabinet welcomed the report as providing robust documentation of the full financial consequence of the crisis. Members agreed with holding the Government to their commitment of support and felt that this should be based on the full financial impact on the Council.

The recommendations in the report were considered and agreed. A decision record is attached to these minutes.