Agenda item

Consideration was given to a report of the Director of Finance which provided an update on the deployment of additional capital and revenue grants received in 2020/21 since the reports to Cabinet of 23rd April 2020 and 24th August 2020 and provided details of the estimated financial challenge for the Council arising from the COVID-19 pandemic.

The Government had in response to the COVID-19 pandemic, allocated a significant number of grants to provide support to Local Government and therefore the Council. Reports were considered by Cabinet on 23rd April 2020 and 24th August 2020 which presented a range of grant support received towards the end of 2019/20 and early 2020/21.

The report outlined the additional and updated grant funding that had been received since those Cabinet meetings in the sum of £15.658m of ringfenced and unringfenced revenue grants and £0.694 of capital grants, together with a range of grants to support businesses in Oldham.

In addition, the report advised of the financial information that the Council provided to the Ministry of Housing, Communities and Local Government (MHCLG) on a monthly basis which informed the Government of costs being incurred/income lost by the Council as a result of the pandemic.

The information included in the returns highlighted the financial challenge that the Council was facing in 2020/21 although additional Government grant funding is expected.

Members were also advised of the on-going impact of COVID-19 on the financial position of the Council in future years, with the estimated budget reduction requirement for 2021/22 at a value of £30m.

Options/alternatives considered

Option 1 - Cabinet approves the adjustments to the budget of the Council to reflect the additional grant funding received during 2020/21 as outlined in this report, confirms its support for actions being taken to address the financial challenge, endorses the proposed release of supported voluntary redundancy applicants and notes the updated financial forecasts.

Option 2 - Cabinet does not approve the adjustments to the budget of the Council to reflect the additional grant funding received during 2020/21 as outlined in this report, suggests alternative action to address the financial challenge does not endorse the proposed release of supported voluntary redundancy applicants and does not agree to note the updated financial forecasts

RESOLVED – That:

1.    The acceptance of all the additional unringfenced and ringfenced revenue grant funding received since Cabinet considered its last financial update report at its 24 August 2020 meeting (as set out at sections 2.3 to 2.6) together with all corresponding adjustments to the budget of the Council be approved.

2.    The administration of the business grant funding be approved as set out at section 2.7 of the report and authority for the determination of any discretionary business grant funding regimes be delegated to the Directors of Finance and Economy in consultation with the Leader of the Council and the Cabinet Member for Finance and Green.

3.    The additional capital grant funding that the Council had received be noted.

4.    The estimated extent of the financial challenge that the Council was facing in 2020/21 as a result of the COVID-19 pandemic be noted.

5.    The measures that have been introduced to reduce the call on Council resources in year be supported.

6.    It be noted the financial planning for 2021/22 and future years was extremely challenging due to the uncertainty about the impact of the pandemic and the level of Government funding that would be received.

7.    The estimated budget reduction requirement of £30m for 2021/22 be agreed.

8.    The public consultation that was taking place with regard to 2021/22 budget reduction proposals (from 9 November 2020) be noted.

9.    The release of the supported voluntary redundancy applications received as part of the organisation’s recent voluntary workforce reduction programme as detailed within this report be approved.

10.The revised decision making timeline for budget setting 2021/22 as set out at section 2.10.8 of the report be approved.