Issue - meetings

To consider a report by Councillor Julian Thompson-Hill, Lead Member for Finance, Performance and Strategic Assets (copy enclosed) detailing the final revenue position for 2020/21 and proposed treatment of reserves and balances.

RESOLVED that Cabinet –

(a)       notes the final revenue outturn position for 2020/21;

(b)       approves the proposed treatment of reserves and balances as described in the report and detailed in Appendices 1, 2 and 3, and

(c)        notes the details of transfers to and from Earmarked Reserves as set out in Appendix 4.

Councillor Julian Thompson-Hill presented the report on the final revenue outturn position for 2020/21 and proposed treatment of reserves and balances.

Members were guided through the detail of the report and appendices.  In brief the final outturn position on service and corporate budgets (including schools underspend of £7.058m) was an underspend of £9.457m.  Details of the 2020/21 budget service savings and efficiencies required had been provided (£4.448m).  The impact of coronavirus was highlighted and the significant grant funding received from Welsh Government – £19m had been received by the end of the financial year with the assumption that the final grant claims (£2.7m) would be paid in full.  Other areas to note included an overall school balance to be carried forward of £5.670m (an increase of £7.058m on deficit balances brought forward into 2020/21 of £1.388m) with much of that funding to be used in 2021/22 to recover from the impact of Covid-19.  Key elements of the underspend in corporate budgets (£1.874m) were highlighted which allowed services with commitments going into 2021/22 to put forward proposals to carry forward their underspend to cover those costs and also to increase the Budget Mitigation Reserve.  Given the overall position within services and the availability of corporate funds, it was proposed that services carry forward the net underspends listed as committed service balances to help deliver the 2021/22 budget strategy and meet existing commitments.  Reference was also made to the transfers to and from Earmarked Reserves.

The Head of Finance added that the report had been brought forward earlier to achieve the 31 May close down date and for Cabinet to approve the treatment of reserves and balances prior to consideration of the Annual Performance Report at Governance and Audit Committee.  He highlighted that, whilst the figures looked high, the two big movements related to school balances and capital schemes.

The following issues were raised during the ensuing debate –

·         reference was made to the impact on school balances over the last year with most schools showing positive balances.  Councillor Huw Hilditch-Roberts responded to questions regarding Christ the Word Catholic School and explained the reasoning behind the deficit balance, which was as expected given the new school had started with a zero balance and payments were made in arrears, and the subsequent impact of increased pupil numbers.  Consequently there was no cause for concern with projections that the school would show a positive balance of £584k by year 3.  The system in place for assisting schools in financial difficulty was further explained including the production of financial recovery plans which had proved extremely effective.  Further assurances were provided regarding the excellent communication with schools which enabled early identification of issues or potential issues of concern and for the council to work with schools to resolve them

·         in response to a question from Councillor Bobby Feeley regarding future funding availability for businesses continuing to struggle financially, the Head of Finance confirmed that Welsh Government were in the process of finalising a new scheme targeted at businesses which would be administered via Planning and Public Protection Services and supported by the Revenues and Benefits Team.

Cabinet paid tribute to the work of finance officers in responding to the challenges faced during an extremely difficult year and in the general financial management which also gave members confidence that the council’s finances were secure and effectively managed.  The Leader also referred to the positive collaborative working between the Welsh Government and WLGA and regular meetings with the Minister for Local Government where there was recognition for the work carried out by local authorities and the challenges faced.  ...  view the full minutes text for item 7