Agenda item

Report of the Chamberlain.

The Sub-Committee considered a report of the Chamberlain outlining the approach taken by officers in response to this Sub-Committee’s request in July, to undertaken an in-year re-budgeting exercise to assist in repairing the impact on the City’s budgets arising from the COVID-19 pandemic.

The Chamberlain introduced the repot before Members and outlined the recommended budget adjustments totalling £15.6m to some departmental local risk budgets in order to address the deficit in lost income and set realistic budgets that Chief officers could be held to in the 2020/21 financial year. He stressed that there had been constructive and positive engagement on these issues to date through bi-lateral meetings held between the Chamberlain and Chief Officers and good progress had been made.

Reference was made to the significant impact on the Open Spaces budgets as a result of COVID-19 and the huge visitor numbers that were experienced at the height of the pandemic. Arising from this, some concern was expressed regarding income generation and the department’s ability to increase funding. Clarification was sought in respect of the corporate approach to events related income generation. The Chamberlain responded that there had been a significant impact on the Remembrancer’s Department in terms of loss of income due to limited private event hire and thus several adjustments had been suggested. Members were advised that, having considered the Open Spaces in the round, a slight adjustment had been made to the budget covering Epping Forest. The Chair noted the comments made and the Chamberlain undertook to follow up on the request for greater clarity, in due course, about the corporate approach to the loss of income as a result of a decline in events.

Members acknowledged the progress that had been made despite the remaining risks and uncertainties, the key ones being around rents and the Barbican where estimates on recovery remained very uncertain. The Deputy Chairman commented on the need for a greater degree of financial discipline than ever before and the importance of a collaborative approach to help close the deficit across the budget span; identify and make savings where possible; and control spending.

RESOLVED, that:-

(i)            Members note the steps already taken by officers to reduce the financial impact of the COVID-19 pandemic;

(ii)                                           endorse the adjusted departmental budgets totalling £15.6m for onward

approval of the Court of Common Council;

(iii)         approve proposals to continue working with departments to identify further savings where possible; and

approve continuation of recruitment controls aligned to the Target Operating Model (TOM) which may give further savings in the year.