Issue - meetings

[Report of the Director  of Finance.To be introduced by the Cabinet Member for Finance and Strategic Regeneration]

This will report will provide an update on the actual and forecast impact of Covid-19 on Council General Fund, HRA & Capital budgets and the MTFS,  including notification of government funding.  It will seek approval for any budget changes required.

The Cabinet Member for Finance and Strategic Regeneration introduced the report which provided an update on the current estimated financial impact of Covid-19 and built on the 6 April 2020 Leader’s Signing report. The report set out further Government announcements, confirmation of agreed allocations of Government funding and recommended further allocations to be made.

The Cabinet Member noted that whilst it was expected that further funding would be forthcoming to balance additional expenditure, there would be difficult financial decisions to be made in the event that this funding was not forthcoming.

The Cabinet Member further referred to the tabled addendum report which clarified the financial implications for the Council of continued financial support for the home care sector as the transition to the new DPS arrangements, which incorporate the payment of LLW, take effect.

The addendum report provided a route for ensuring that care workers continue to be paid at rates which are commensurate with the valued work which they do for Haringey residents and supports implementation of the LLW for the care sector. This was at a quicker pace than previously envisaged and in a sustainable way despite the specific challenges of the Covid-19 pandemic for the care sector. The additional recommendations outlined at section 4.1.1 to 4.1.3 gave effect to this.

In response to questions from Councillors Dennison, Connor and Palmer, it was noted that:

• The funding allocation for the Discretionary Grant Funding scheme was 5% of projected spend for the initial two grant schemes. The baseline funding allocation for Haringey was £3.153m.

• Relevant information on expenditure on the Reopening High Streets Safety Fund would be provided to Councillor Dennison.

• Noted that local authorities will be subject to a series of impacts based on expenditure and loss of income experience which was a similar financial position to the national level. The report indicated that the Council was on track to receive around a third of the required funding needed to support the General Fund and this was in trend with other local authorities.

• The table at paragraph 8.6 provided a broad overview of the financial impact so far. This showed the potential effect on income ,expenditure  and planned savings, balanced against the received grant funding. Regarding expected grant funding to be received, while was a matter of interpretation, it  would be reasonable to conclude that  the Council’s  government  towards Covid 19 budget pressures to date was in proportion to the national position reported by the LGA .

• Details on the Care Home Support Plan was available on the Council’s website – https://www.haringey.gov.uk/social-care-and-health/covid-19-information-and-guidance-health-and-social-care-professionals
• The addendum outlined a series of recommendations, one of which was a continuation of a £2 uplift in hourly pay rate for home care workers from April-June. This uplift brought the hourly pay rate in line with the London Living Wage.

• The £1.4m income loss and £8.2m impact on the Housing Revenue Account would not be written off as it was expected, at this point in time, to be covered by government funding.

• Any rent deferrals  ...  view the full minutes text for item 235