Issue - meetings

To consider a report by Councillor Julian Thompson-Hill, Lead Member for Finance and Assets (copy enclosed) detailing the latest financial position and progress against the agreed budget strategy.

RESOLVED that Cabinet notes the budgets set for 2016/17 and progress against the agreed budget strategy.

Councillor Julian Thompson-Hill presented the report detailing the latest financial position and progress against the agreed budget strategy.  He provided a summary of the Council’s financial position as follows –

·        the council’s revenue budget for 2016/17 with no variances to report at this stage in the financial year

·        savings of £5.2m were agreed as part of the budget and at this early stage 42% had already been achieved, with a further 25% making good progress; a number of savings were currently being reviewed and the results would be included in future monitoring reports

·        highlighted a number of pressures within the overall budget requiring management action by specific services, and

·        a general update on the Housing Revenue Account, Housing Capital Plan and the Capital Plan (including the Corporate Plan element).

Following the EU referendum result to leave the EU assurances were provided that the Council’s treasury management was being closely monitored and there was little risk to agreed projects in the Capital Plan given that funding had already been allocated.  Risks arising from revenue grants underpinned by EU funding was limited given the timing between EU funding cycles.  A meeting between Welsh Treasurers was being held later in the week to discuss the impact on future funding.  It was agreed to discuss the matter further once the position became known.

In response to questions members were advised that the percentage of savings not achieved in 2015/16 would likely be achieved in 2016/17 and had been due to issues over timing.  A contingency plan was in place to cash flow those savings.  Further work was being carried out on the remaining savings following which an update would be provided.  With regard to treasury management the rate of return on investments had been consistently less than 1% over the last few years.

RESOLVED that Cabinet notes the budgets set for 2016/17 and progress against the agreed budget strategy.