Agenda item

A report was submitted to detail the results of the budget revision exercise, which had been undertaken across the MCA’s revenue budgets and capital programme, following the significant disruption to activity as a result of Covid-19.

The Mayor commented that as with each of the authorities present at the meeting today, Covid has had and continued to have a significant impact on the MCA Group’s finances.  With so much uncertainty before us, this was an issue which would need to continue to be kept under review.

Members’ attention was drawn to the following significant arising issues in relation to the commercial viability of the public transport system in South Yorkshire.  Following the collapse of patronage on all modes of transport, there had been a requirement for ongoing public support from the Central Government grant and local support from the SCR budgets.  In August 2020, the Government had extended the support for the tram into October 2020 and had committed to support bus on a 2 month rolling cycle; parity was still awaited from Government.  There was a requirement for an ongoing contribution from Government to the costs, patronage of 55% for bus and 40% for tram.  Matters would be undertaken to continuously press Government on the matter, and an internal plan would be devised on the exit strategy from the current funding package. 

Income assumption testing had been undertaken, which had identified that the SCR was significantly below where it thought it would be on a number of income streams totalling approximately £1.3m.  There were a number of further expenditure requirements that had not been budgeted for i.e. the fit out of Broad Street West, to enable efficient work during the pandemic and agile working whilst ensuring that the correct tools were in place to prevent future disruption.  The total of which equated to approximately £2m.  Members noted the pace of the Capital Programme, which always included challenging targets for spend over the financial year to meet Government targets.  There was a need to pay close attention to the Transforming Cities Fund over the course of the year to develop plans.

On 15 September 2020, the first game share allocation had been received.

Councillor Dore expressed her thanks to G Sutton and everyone involved.

RESOLVED – That the MCA Board:-

i)       Noted the disruption to the MCA’s income streams and expenditure plans as detailed in the report.

ii)      Noted the ongoing concerns around the commercial viability of the transport network.

iii)     Adopted the revised budget estimates.

iv)     Noted the Section 73 officer’s recommendations to not draw down on the Enterprise Zone retained business rate reserve as previously planned.

v)      Approved the proposal to fund Bus Review activity from the MCA’s SY Transport reserve.

vi)     Approved the proposal to draw down £500k from the MCA’s earmarked Covid reserve to support the MCA Executive’s revenue budget.

Approved the addition to the capital programme of £411k of new and accelerated capital activity required to support the MCA’s response to Covid resilience to be funded from capital receipts unapplied.