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.

Vote taken: 7 in favour, 0 against, 0 abstentions

RESOLVED that Cabinet note the budgets set for 2020/21 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 as outlined below –

·        the net revenue budget for 2020/21 was £208.302m (£198.538m in 2019/20)

·        an overspend of £5.492m was forecast for service and corporate budgets (the overspend did not assume receipt of further ‘income loss’ grants or claims)

·        highlighted current risks and assumptions relating to individual service areas together with the financial impact of coronavirus and Leisure ADM budgets

·        detailed required savings and efficiencies of £4.448m agreed including corporate savings relating to triennial actuarial review of Clwyd Pension Fund (£2m); 1% schools savings (£0.692m); service savings (£1.756m)

·        provided a general update on the Capital Plan, Housing Revenue Account and Housing Capital Plan.

Councillor Thompson-Hill elaborated upon the latest financial position in detail, particularly with regard to the financial impact of Covid-19 including grant funding secured to date and the position on claims for the council.  He also highlighted risks around Council Tax Yield and the Council Tax Reduction Scheme (CTRS).  The Welsh Government (WG) had recently announced a small element of additional funding across Wales for the CTRS.  The Head of Finance added that there was a projected reduction of 1.5% in the Council Tax Yield and the WG had agreed to look into the possibility of funding provision in that regard.  The risks around social care budgets, school transport and waste services were also highlighted.

The following issues were raised during the ensuing debate –

·        Councillor Brian Jones was keen to ensure that all were aware of the work of the council in maximising funding opportunities to reduce the projected overspend and mitigate the impact of Covid-19 on the authority’s finances.  The Lead Member for Finance confirmed WG funding announced earlier in the year had included additional funding for loss of income for the remainder of the financial year.  Most of the Quarter 1 claim had been met and the Quarter 2 claim was currently being evaluated.  Claims would also be made for Quarters 3 and 4 at the appropriate time and the authority would continue to claim from any funding streams available to them in order to maximise income

·        Councillor Mark Young was sympathetic to those facing financial difficulties and questioned the approach taken in the recovery of Council Tax.  Assurances were provided that the council had a balanced view with a sensitive and flexible approach taking into account individual circumstances.  Whilst little recovery action had been taken during the first six months the council was now engaging with residents and working with Citizens Advice Denbighshire to target help where needed but also to ensure recovery of arrears where appropriate.  There was an expectation from Welsh Government to undertake that recovery work

·        in response to questions from Councillor Meirick Davies it was confirmed that the old school sites in Clocaenog and Cyffylliog were owned by the council and future use of the sites were currently being considered in accordance with the council’s disposals policy.  With regard to Ysgol Llanbedr the basic principle of the land exchange had been agreed as part of the original proposal in order to deliver the new school and an update was provided on discussions for the future use of the former school site, again in line with the council’s disposals policy.

RESOLVED that Cabinet note the budgets set for 2020/21 and progress against the agreed budget strategy.