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: 8 in favour, 0 against, 0 abstentions

RESOLVED that Cabinet –

(a)       note the budgets set for 2020/21 and progress against the agreed budget strategy, and

(b)       agree to the setting up of a small reserve to help pay for investment in the Ruthin Gaol complex to improve the visitor experience.

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 £5.221m 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.

Cabinet was also asked to agree the setting up of a small reserve to help pay for the investment in the Ruthin Gaol complex to improve the visitor experience.

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.  A payment of £2.6m had been received to cover losses of income for common areas across authorities but it was unknown whether a further claim for a diverse range of losses would be paid in full as Welsh Government (WG) had emphasised the need for consistency across councils and to avoid subsidising local choice.  WG had also announced a further £264m for local authorities to support them with the additional costs and loss of income as a result of the Covid-19 pandemic for the rest of the financial year and further details and guidance in that regard were expected in the coming weeks.

The Lead Member and Head of Finance responded to questions as follows –

·        gave an overview of funding streams available for Denbighshire Leisure Limited together with agreed arrangements to help with cash flow.  The main funding source was WG’s loss of income fund and the payment for Quarter 1 had been received.  It was hoped that the claim for Quarter 2 would also be paid in full

·        detailed the arrangements for payment of the £500 gifted to care workers by WG which was being administered by the council with good progress being made.  Nearly all council staff had been paid and a third payment run for external providers was imminent following which most would have been paid.  Councillor Bobby Feeley paid tribute to Community Support Service and staff in delivering the scheme particularly given the lack of consultation beforehand

·        clarified that agreement was sought to the principle of setting up a reserve to help pay for investment in the Ruthin Gaol complex and the intention was for the service to work to find savings to build up the reserve to £60k by 2025; it was understood that a different service was responsible for town centre recovery and consequently there was no cross over or counter commitment between those service budgets – the Leader asked for further clarification and for an email to be sent to Councillor Gwyneth Kensler in response to her query in that regard

·        with regard to reimbursement of costs incurred for delivery of WG schemes, the view was that if it was a genuine increase in costs, unavoidable due to Covid-19, costs would be claimable but each case would be assessed on its own merits.

RESOLVED that Cabinet –

(a)       note the budgets set for 2020/21 and progress against the agreed budget strategy, and

(b)       agree to the setting up of a small reserve to help pay for investment in the Ruthin Gaol complex to improve the visitor experience.