Report by Chief Finance Officer.
7
The Chief Finance Officer submitted a report outlining the current estimated financial impact on the IJB’s delegated budgets arising from the COVID-19 pandemic.
The report highlighted that the financial implications for the IJB would become clearer over time as the impact and magnitude of the pandemic on the HSCP emerged.
The report intimated that Scotland, in common with all parts of the UK, entered lockdown on 23 March 2020. A range of constraints were implemented, then strengthened through the Coronavirus (Scotland) Act 2020 and the Health Protection (Coronavirus) (Restrictions) (Scotland) Regulations 2020. These constraints were reviewed at least every three weeks which ensured the impact of restrictions remained proportionate to the threat posed to wider societal and economic aspects. In addition, the Coronavirus (Scotland) (No.2) Bill became an Act on 26 May 2020.
The relaxation of lockdown conditions is now proceeding at a different pace across the UK with the implementation of each Phase being determined by reductions in the rate on infection and the ability of the health and social care system to manage future infection peaks.
The financial consequences of the pandemic are expected to be significant in the short term, with unprecedented financial interventions made by national governments to support the immediate COVID-19 response, the economy and businesses. The scale of government intervention to support the economy would inevitably have both short, and, longer-term implications for public finances across the UK and Scotland. This may therefore require the IJB to reconsider its 2020/21 budget and potentially reassess its medium-term financial planning as the full impact of the pandemic becomes clearer in the months ahead and as the IJB took forward its Recovery and Renewal Planning Programme.
The report provided an initial estimate of the financial impact of the COVID-19 pandemic in the current financial year and it was noted that this position would be subject to change as the year progressed and greater clarity transpired.
DECIDED:
(a) That the current financial assessment of the potential revenue consequences of the COVID-19 pandemic, along with the anticipated disruption to the IJB’s planned savings in 2020/21, as outlined in sections 4 and 5 of the report, be noted;
(b) That it be noted that the funding confirmed to date was significantly less than the estimated additional costs to the IJB;
(c) That it be noted that the financial impact of responding to the pandemic might continue to increase over the coming months as more increasing and changing demands were placed on the IJB;
(d) That the Chief Finance Officer’s recommendation, as detailed in section 7 of the report, that the Chief Officer develop a range of proposals for the IJB’s consideration, which would support the IJB’s ability to deliver a balanced budget in 2020/21 and which would support a refreshed medium-term financial plan be agreed;
(e) That it be noted that further updates on the developing financial position would be provided to the IJB on a regular basis as material developments emerged;
(f) That the Chief Finance Officer’s recommendation, as detailed in section 6.12 of the report, that the Chief Officer write to the Cabinet Secretary of Health and Sport to seek a commitment of funding for the additional expenditure already incurred and the anticipated future expenditure as detailed on the local mobilisation plans to allow the IJB to fund the level of financial support requested from its suppliers to protect their sustainability and ensure the financial sustainability of the IJB be agreed; and
(g) That the Chief Finance Officer’s recommendation, as detailed in section 6.13 of the report, that sustainability payments were not made until the partnership received confirmation of funding from the Scottish Government be agreed.