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 notes 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 £7.585m was forecast for service and corporate budgets (the overspend did not assume any ‘income loss’ grant that may be received)

·        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 to be identified and 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 both revenue and income losses together with the submission of expenditure and income pressures for Quarter 2.  In terms of loss of income there were indications from Welsh Government (WG) that at least four main areas, where loss of income was common across all 22 local authorities, would be paid from the Quarter 1 claim.  This covered leisure, car parking, waste and school meals income and would equate to approximately £2.5m for Denbighshire – this amount had not been assumed in the figures because no formal confirmation had yet been received.  Loss of income classed as a ‘local decision’ taken by individual local authorities may not be funded by WG and it was still unknown as to how loss of income for Quarter 2 and beyond would be treated.  The significant uncertainties made it extremely difficult for future financial planning.

The following issues were raised during the ensuing debate –

·         Councillor Bobby Feeley welcomed the grant funding received, particularly for social care and homelessness, and noted that leisure services would also likely benefit from some funding for loss of income for Quarter 1.  However she felt a specific case should be made to recognise leisure services as an essential service given the health and wellbeing benefits which should be funded accordingly.  It was hoped that the claim for loss of income for leisure services for Quarter 1 would be paid in full.  The Leader added that all 22 local authorities were in the same position in terms of pressures but reported upon regular meetings with Ministers via the Welsh Local Government Association which provided an effective means of communication, and the financial pressures faced by local authorities had been acknowledged.  It was hoped that the pressures could be addressed through grant funding but it was important to have a clear message in that regard going forward to inform the budget process

·         Councillor Mark Young queried the availability of the £78m announced in the supplementary budget for losses of income in Quarter 1 and the Lead Member for Finance was pleased to report that the latest information indicated the full amount would now be allocated for that purpose.  The Head of Finance added that it was hoped the claim for loss of earnings across the four areas common to all 22 local authorities would be paid in full but the outcome was still uncertain.  It was anticipated that the remainder of the funding announced would be used to address the areas of loss of income where there were differences in approach and to ensure fairness across the local authorities.  In line with the Council’s agreed financial strategy work continued to maximise income from WG and ensure appropriate internal financial management to respond to those pressures

·         in response to questions raised by Councillor Meirick Davies, Councillor Bobby Feeley reported upon the limited leisure offer currently available outdoors in line with government restrictions but confirmed it had not been possible to open indoor facilities as yet.  Members noted the positive feedback received following opening of the outdoor leisure facilities which had been well received.  With regard to Rhyl Queen’s Market Redevelopment, the Leader confirmed the expectation that all buildings would be cleared within the next few weeks.  He confirmed a shortfall of funding and work was ongoing with partners to draw down funding in order to proceed as planned.

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