Issue - meetings

Councillor S. Buttar

To approve the reserves policy effective from 31 March 2020 and note the restatement of earmarked reserves.

Cabinet considered a report to approve the reserves policy and to note the restatement of useable reserves as at 1 January 2021.

Cabinet noted that the Council needs to restate the Useable Reserves as at 31 December 2020 to the Useable Reserves as at 1 January 2021 which will reflect and realign the Council’s General Fund reserves with its strategic goals for the next three years.

Resolved to approve the Reserves Policy as part of its Outline Budget Strategy and to note the restatement of reserves as at 1 January 2021.

Reason for decision:

On 21 May 2020, the Council agreed to utilise £2.2 million of the Council’s useable reserves to support taxpayers and businesses in the Borough through the pandemic, this was before any formal Government announcements on financial support.

Having subsequently received additional Government support towards its COVID response the Council is forecasting that it only needs to utilise £0.7 million to support the current financial year and, subject to any further impact on the Council between January and March 2021, the Council will be looking to review its earlier decision and return £1.5 million to an earmarked COVID support reserve. 

To note the Council’s Reserves Policy effective from March 2020.

The Chief Accountant introduced the report and in response to members confirmed that the Council’s reserves had increased significantly over the last ten years as part of its risk mitigation strategy

The Committee considered the Reserves Policy and agreed to note the report.