Agenda item

Mr D Shipton (Head of Finance - Planning, Policy & Strategy) and Ms Z Cooke (Corporate Director of Finance) were in attendance for this item

(1)        Mr Shipton introduced the report and presented a series of slides which set out an update in relation to the financial impact of the COVID-19 pandemic and subsequent economic recession, including the additional funding provided by central Government, the Council’s estimated costs for the emergency response, and the potential loss of income and delays to savings plans.

Officers responded to a number of comments and questions from Members, including the following: -

a)    Mr Shipton emphasised the importance of ensuring that additional spending was limited and stated that the vast majority of the current additional spending was due to additional demands on services from a rising and ageing population or increasing prices of the contracts that the Council procured. He added that the figures set out within the presentation slides were estimates and were likely to change, given the significant lack of certainty in financial planning.

b)    Mr Oakford (Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services) confirmed that spending pressures were monitored regularly and conversations with each of the Council’s directorates continued. The Council’s Finance department had obtained a report which set out the Council’s performance financially compared against peer councils and the national picture. He added that further information would be submitted to the Committee and other Council meetings in relation to the budgeting process and Member involvement would be a key part of shaping the budget for 2021-22.

c)    Ms Cooke stated that Kent Finance officers had been meeting every week due to the fast-paced and changing nature of the financial situation, to scrutinise and discuss both COVID and non-COVID related pressures and to ensure consistency in planning assumptions. In addition to the Kent Finance officers’ meetings, Ms Cooke had regular dialogue informally and formally with county colleagues through the Society of County Treasurers to ensure that the approach taken was logical and comparable. She added that she felt confident that as a county, Kent were applying very similar assumptions and criteria in the assessments made in relation to financial pressures. Mr Shipton added that in relation to the current position for 20-21, returns were made to the Ministry of Housing, Communities and Local Government (MHCLG) on a monthly basis and Finance officers met with other South East county colleagues regularly before those returns were submitted each month. He confirmed that Finance officers would produce further reports and updates in relation to the budget for 20-21 upon obtaining national analysis. He thanked Kent’s districts for continuing to work closely with Kent County Council to provide regular monthly monitoring in relation to council tax collections.

d)    Mr Oakford said that due to the ever-evolving situation in relation to COVID-19, it would prove very difficult to provide additional information to Committees on the budget-making process outside of the normal process. He added that the priority for officers in the current climate was to focus on reducing pressures to avoid further additional spending.

e)    Mr Shipton briefly referred to the council tax status of mobile homes and confirmed that districts did not offer any discount on second homes anymore. He added that Finance officers worked closely with district councils to tackle fraud and error on council tax and confirmed that whether a property was liable for council tax or business rates, was a decision that would be made by the Valuation Office Agency and not the council.

(2)        RESOLVED that the report and the presentation slides be noted.