Issue - meetings

To consider a report by Councillor Gwyneth Ellis, Lead Member for Finance, Performance and Strategic Assets (copy enclosed) detailing the final revenue position for 2022/23 and proposed treatment of reserves and balances.

RESOLVED that Cabinet –

(a)       notes the final revenue outturn position for 2022/23;

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

(c)        notes the details of transfers to and from Earmarked Reserves as set out in Appendix 3.

Councillor Gwyneth Ellis presented the report on the final revenue outturn position for 2022/23 and proposed treatment of reserves and balances.  The draft Annual Statement of Accounts for 2022/23 would be submitted to external auditors prior to Governance and Audit Committee in September.

The Head of Finance and Audit guided members through the detail of the report.  In brief, the final position on service and corporate budgets (including schools overspend of £3.509m) was an overspend of £5.095m; excluding schools the position was an overspend of £1.585m.  Coupled with a small shortfall in Council Tax collection of £0.019m, unearmarked reserves of £1.604m had been utilised to fund the net overspend, leaving a balance of approximately £5.5m. The position on schools’ balances had been better than projected and reserves of £3.5m (leaving a balance of £9m) had been utilised to address that overspend.  Finally, the proposed treatment of reserves and balances had been set out in full.  The majority of movements had been budgeted for or had been previously approved.

Councillor Gill German reiterated that, whilst school budgets appeared reasonably healthy, it was predominately due to additional grant funding from the Welsh Government to address the impact of the pandemic.  She reported on the impacts on mental health and wellbeing, and issues such as attendance, socialisation, and speech and language which needed to be addressed in a timely manner going forward.  The wider financial challenges and risks as detailed in the report were highlighted including inflationary pressures and financial strategy of the UK Government in dealing with the financial impacts in response to Covid and cost of living crisis.  Councillor German made the point that the current difficulties had been as a direct result of political decisions made by the UK Government and stressed the importance of all working together in order to best respond to the situation. 

RESOLVED that Cabinet –

(a)      notes the final revenue outturn position for 2022/23;

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

(c)      notes the details of transfers to and from Earmarked Reserves as set out in Appendix 3.