Agenda item

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

RESOLVED that Cabinet –

(a)       notes the budgets set for 2017/18 and progress against the agreed budget strategy, and

(b)       that officers prepare a summary of the financial cost to the Council associated with the adverse weather conditions experienced this winter to include an estimate of the reduction in income caused by these events.

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 –

·        service and corporate budgets were forecast to be underspent by £239k

·        service efficiencies worth £0.902m having already been agreed as part of the budget with the assumption that all would be delivered – any exceptions would be reported to Cabinet if required

·        highlighted current risks and variances relating to individual service areas, and

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

Cabinet was also advised that the Welsh Government had announced an additional £484k for Denbighshire’s schools to help with maintenance costs incurred during 2017/18 together with a capital grant of £1.2m for highway improvement.

The following matters were raised during debate –

·        the additional funding recently announced by Welsh Government for schools and highways was welcomed but it was hoped that in future years any additional provision would be allocated earlier in the financial year in order to better aid financial planning

·        Councillor Brian Jones reported that savings had been made through core funding and management costs to reduce the shortfall in the Major Projects Team from £165k to £115k.  There was also a need to reduce the income figure for the Major Projects Team in the ensuing year in order to better reflect the current position

·        it was currently projected that the effects of the recent adverse weather on the winter maintenance budget could be contained within existing resources although the matter would be kept under close review and the Welsh Local Government Association had requested financial help from Welsh Government in order to help pay for the impact of the severe weather

·        concerns were raised regarding the impact of the adverse weather in terms of highways, woodlands and footpaths together with the need for an appropriate repair and maintenance programme, to include cost implications, in order to address those issues.  The wider impact on other council services was also highlighted such as those heavily reliant on income generation which would be significantly affected by closed facilities.  Consequently it was agreed that a summary of the financial cost to the council associated with the adverse weather conditions be prepared

·        the Welsh Government had asked local authorities for feedback on the effects of the adverse weather and therefore had recognised an impact across services.  It was highlighted that some local businesses had also been badly affected and suggested that Welsh Government could also take that aspect into account

·        members were encouraged to report any highway concerns through the CRM system so that they could be appropriately logged and actioned but Councillor Meirick Davies felt that there should be a separate mechanism for urgent works required in order to avoid any undue delay

·        tribute was paid to the work of Highways staff in responding to the recent adverse weather conditions and maintaining the county’s roads and Councillor Brian Jones advised that the Head of Highways and Environmental Services would include Cabinet’s appreciation in his communication to all staff involved

·        Councillor Arwel Roberts reiterated previous concerns regarding schools in deficit and subsequent impact due to increases in the state pension age.  Councillor Huw Hilditch-Roberts provided assurances regarding the robustness of the financial plans for all schools which included current salary costs.

RESOLVED that Cabinet –

(a)       notes the budgets set for 2017/18 and progress against the agreed budget strategy, and

(b)       that officers prepare a summary of the financial cost to the Council associated with the adverse weather conditions experienced this winter to include an estimate of the reduction in income caused by these events.