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 note the budgets set for 2018/19 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 –

·        the net revenue budget for 2018/19 was £194.418m (£189.252m in 2017/18)

·        an overspend of £1.292m was forecast for service and corporate budgets

·        detailed agreed savings and efficiencies worth £4.6m including those which had already been achieved with the assumption that all service efficiencies/savings 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).

Councillor Julian Thompson-Hill highlighted the usual risk areas but confirmed there had been little movement in the figures since the report to the last meeting.  The Chief Executive added that the challenges around School Transport and Children’s Services were not unique to Denbighshire and had been driven by increased demand.  Assurances were provided that officers had scrutinised those pressures in detail and considered them to be genuine pressures which would need to be dealt with alongside the poor financial settlement for 2019/20.

The following matters were raised during debate –

·         Councillor Huw Hilditch-Roberts referred to the pressures on school transport which amounted to nearly £600k but in context he advised that Powys County Council spent approximately £68k per day (£12.5m a year) on school transport costs.  He provided assurances regarding prudency when applying the eligibility criteria for school transport and clarified the discretionary elements in the policy.  He did not advocate a review of the non-statutory elements as he believed it would result in a significant impact on learners

·         the Council had made best efforts over the last few years to restructure services with a focus on resilience in order to reduce budgets whilst not impacting on service users but concerns were raised that it may not be possible to afford that protection in the future.  In response to questions regarding the potential for additional monies, specifically for social care, Councillor Thompson-Hill advised that an additional £30m had been included in the draft Welsh Government budget for social care in the health budget line but it had yet to be determined how that funding would be allocated; local authorities were lobbying for some of that funding.  With regard to allocation of the consequential from the UK Autumn Budget it was not yet known whether it would result in any additional funding for local government.  Detail of the final settlement was due on 19 December 2018.  Members reiterated the difficulties in future financial planning given the uncertainties over budgets and late notification of the final settlement.  It was noted that the Welsh Local Government Association continued to lobby Welsh Government on that point

·         Councillor Mark Young made reference to the recent Welsh Government announcement of £15m earmarked for teachers professional development and Councillor Huw Hilditch-Roberts confirmed he had raised the issue with Education Secretary Kirsty Williams and his view that, given that losing teaching posts was a real possibility, local authorities should be permitted to distribute education funding based on need which would prove more beneficial for schools rather than spend being specifically earmarked.  The Education Secretary had responded that teacher unions were happy with the allocation for training

·         in response to questions regarding the maintenance contract for the Pont y Ddraig bridge issues were clarified around the service and repair costs and it was explained that a renegotiation of the maintenance contract was required in order to anticipate future costs and a lifetime repair cost.  The additional cost had already been factored into existing estimates.

RESOLVED that Cabinet note the budgets set for 2018/19 and progress against the agreed budget strategy.