10 THE EFFECT OF COVID-19 ON BYW'N IACH'S 2021-22 BUDGET PDF 154 KB
Cyflwynwyd gan: Cyng / Cllr. Ioan Thomas & Cyn / Cllr. Gareth Thomas
Additional documents:
Decision:
The Head of
Finance Department was authorised in consultation with the Head of Legal
Services and the Head of Economy and Community Department, to provide a letter
of assurance to extend the period of assurance already given to the Byw'n Iach
company until the end of the 2021/22 financial year, in accordance with the
provision in the agreement with the company.
Minutes:
The report was submitted by Cllr Ioan Thomas
DECISION
The Head of Finance
Department was authorised in consultation with the Head of Legal Services and
the Head of Economy and Community Department, to provide a letter of assurance
to extend the period of assurance already given to the Byw'n Iach company until
the end of the 2021/22 financial year, in accordance with the provision in the
agreement with the company.
DISCUSSION
The report was presented, noting that in May 2020 a report was submitted
noting a possible gap in the Byw'n Iach company 2020/21 budget as a result of
Covid-19. It was added at the meeting that it was expected that Welsh
Government would fund additional expenditure and it was resolved that the
Cabinet would be willing to provide the necessary financial support to sustain
the services of Byw'n Iach company initially until the end of the 2020/21
financial year.
It was stated that the Government had given fair contributions from the
Hardship Fund towards loss of income and that the Council had claimed funds
from the Furlough scheme whilst the leisure centres were shut. It was noted
that the Finance Department was expecting the Council to claim a total of £3m
in assistance on behalf of Byw'n Iach company.
It was noted that the side-effects of the Covid-19 crisis would continue
in 2021/22 with the possibility of some sort of restrictions in place together
with the challenge of re-building the confidence of the company's customers. It
was stressed that the Council remained of the opinion that an arm's length
company model was the most suitable one to address the aspirations in the
leisure field and that a close relationship would continue to secure its
financial viability.
The recommendation to extend the period of assurance to the next
financial year in order to support them financially until 31 March 2022 at
least, was noted. It was added that, in using 2021/22 as a basis, it was not
anticipated that the cost of keeping the company viable would be above this
year's sum. In addition, it was stated that there was a reasonable budgeting
presumption that the Government would continue to compensate the Council for
loss of income for the next financial year.
Awdur: Dafydd Edwards