Issue - meetings

Councillor Max Schmid introduced the report requesting approval for budget variations to the capital programme, which was impacted by Covid-19 on the reduction of its funding and the longer construction periods due to social distancing. He added that the programme still reinforced the Council’s commitment to build genuine affordable housing.

In reply to a question from the Leader, Councillor Max Schmid stated that

Covid-19 had left a hole of at least £18m in the Council’s finances after the government broke its initial promise that councils would be fully funded for the financial impact of the pandemic. This figure was not taking into account the impact of a potential second wave. The effect of this debt on the Council’s budget would be felt within the next 3 years, aggravated by the 10 years of continuous austerity imposed on all local authorities. He was not aware of any new funding coming from the central government.

Councillor Ben Coleman noted that the Council was calling on the government to turn NHS Test and Trace into a locally led service, which would require appropriate funding. He hoped that the government would come forward and provide this funding as many local authorities would be sceptical in offering this service in fear of not receiving the full funding.

RESOLVED:

1.    To approve the proposed budget variations to the capital programme totalling £36.4m (summarised in Table 1 and detailed in Appendix 2).

2.    To note the potential risks regarding the Housing Capital Programme, as summarised in paragraphs 26, 27 and 28.

3.    To delegate the allocation of the HRA Asset Management and Compliance Programme unallocated budget to the Strategic Director of the Economy, in consultation with the Director of Finance.