Agenda item

To consider a report by Councillor Julian Thompson-Hill, Lead Member for Finance, Corporate Plan and Performance (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 service budgets for 2016/17.  He provided a summary of the Council’s financial position as follows –

·        a net underspend of £0.545m was forecast for service and corporate budgets

·        68% of savings had been achieved to date (target 5.2m) with a further 2% making good progress; 25% would be deferred and achieved in 2017/18 with only 5% of savings not being achieved within the timeframe

·        highlighted current risks and assumptions relating to individual service areas

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

The following matters were raised during debate –

·         reference was made to the financial implications arising from the collapse of GHA coaches and Councillor David Smith reported upon continued efforts to secure financial aid from the Welsh Government to help meet those costs – this matter was being vigorously pursued and Cabinet would be advised once a response had been received from the Minister for Economy and Infrastructure in that regard.  The importance of providing local bus services, particularly in rural areas, was again highlighted and Councillor Smith clarified that any financial assistance from Welsh Government would be a one off payment in respect of the additional costs incurred by the Council in the restoration of local bus services following the collapse of GHA.  With regard to ongoing provision of local bus services Lead Members from North Wales local authorities would be meeting later that week to discuss the issue.  It was noted that the Council’s Rural Transport Forum had not met for some time and the Leader felt it would be pertinent to convene a meeting in order to gain a better understanding of local services in Denbighshire.

·         some discussion focused on school balances and concerns were raised regarding the pressures on schools and the use of balances in order to continue good work which was not sustainable in the long term – reference was also made to the level of balances and Welsh Government guidelines in that regard.  Councillor Eryl Williams commended the work of the Schools Budget Forum and reported upon the Task and Finish Group which had been set up to review the level of school balances and the way schools were funded.

·         Councillor Bobby Feely referred to the development of the new shared school building at Glasdir for Rhos Street School and Ysgol Penbarras and sought assurances that the schools would open on time in September 2017.  Councillor Eryl Williams advised that such building projects always entailed some delay of particular aspects and rescheduling of others.  He reported upon robust measures in place to monitor progress via the project board and confirmed that all projects were risk assessed and any problems responded to appropriately.  Whilst there was no undue concern that the timescale would not be met it was agreed that if the situation changed the Council should be upfront about any delay to the timescale and share that information at the earliest opportunity

·         in response to questions Councillor Julian Thompson-Hill elaborated upon the 5% savings which would not be achieved within the timeframe which included two elements relating to the ‘channel shift – digital choice’ project and the reduced demand for legal/professional fees which had not materialised as expected.  With regard to PFI savings of £1.4m would be realised and in year cash savings would be allocated when all the budget pressures were known; from 2017/18 that money had been allocated within the budget.

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