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 note the budgets set for 2014/15 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 –

·        a net under spend on the revenue budget of £9k was forecast for service and corporate budgets

·        savings of £7.1m were agreed as part of the budget and at this stage all were either achieved or in progress

·        highlighted other key variances from budgets or savings targets relating to individual service areas, and

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

The only area of significant overspend related to Highways & Environmental Services, as indicated in previous reports, which covered school transport, reduction in income from parking, and concerns around design fees income from North and Mid Wales Trunk Road Agency (NMWTRA).  Councillor David Smith highlighted that those issues were largely outside the authority’s control and although mitigation measures were being taken he was concerned it would not be enough to ensure a balanced budget at year end.  Cabinet considered the actions to address the overspend and much discussion took place around car parking income.  It was agreed to await the findings of the ongoing car parking review before considering whether to explore the option of outsourcing that provision.  In terms of reduced income from NMWTRA Councillor David Smith advised that concerns had been raised in meetings with the Agency and in letters to Ministers.  In response to concerns that the service may not be able to achieve a balanced budget by year end the Head of Finance and Assets reported upon the different stages of financial management to be applied in those circumstances.

Cabinet also discussed the budget strategy and Councillor Julian Thompson-Hill explained that not all services had made the same level of cuts because the process had identified where potential savings could be best delivered with least impact.  As education and social services had been largely protected other service areas had been subject to greater cuts.  The Chief Executive advised of the level of cuts, in percentage terms, taken from individual services to date and explained the rationale behind the current budget process and scope for greater savings in particular areas whilst reflecting the priorities identified by members.  Further details and the impact of the cuts would be provided to members in December’s Budget Workshop.  Members praised the innovative approaches taken in particular areas which had brought about savings whilst maintaining levels or generating improvements in service provision and delivery.  The Leader felt that the budget process had been open and transparent, with all members having been provided with the relevant information, and the effect of cuts on residents had been limited.

In response to general questions assurances were given that there had been extensive communication about West Rhyl Housing Improvement Project and local members had been made fully aware of developments.  In terms of treasury management most of the Council’s investment balances were readily available.

RESOLVED that Cabinet note the budgets set for 2014/15 and progress against the agreed budget strategy.