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)       note the budgets set for 2020/21 and progress against the agreed budget strategy;

(b)       approve the establishment of a specific reserve with the transfer of £200k to help fund work over the coming summer as part of the Destination Management Plan (detailed in section 6.3 of the report), and

(c)        approve the establishment of a specific reserve with the transfer of £59k to help fund up front project costs relating to the New Ways of Working Project (detailed in section 6.4 of the report).

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 underspend of £2.318m was forecast for service and corporate budgets

·        highlighted current risks and assumptions relating to individual service areas

·        outlined the financial impact of coronavirus and position on claims to the Welsh Government (WG) to date together with other WG Covid related grant funding

·        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 approve the establishment of two specific reserves to help fund (1) work as part of the Destination Management Plan, and (2) up front project costs related to the New Ways of Working Project.

Councillor Thompson-Hill referred to the closedown of the 2020/21 accounts which might result in changes to the figures before the final outturn report in June.  He guided Cabinet through the various elements of the report including WG funding sources with approximately £7.4 received to date against expenditure claims and receipt of the Quarter 4 loss of income claim totalling approximately £11.2m for the year together with the impact on the projected underspend from the last month. Service movements were also highlighted, with the largest movements relating to Highways, Facilities and Environmental Services and Finance and Property.  The Head of Finance also highlighted the increased uncertainty during this time in the financial year with various funding streams which needed to be properly accounted for which may change the financial position between now and the final outturn.

The following issues were raised during the ensuing debate –

·        reference was made to previous discussions regarding the reasoning behind some of the disallowed elements of claims and there was a process whereby the detail of those claims could be discussed with WG departments; some of those originally disallowed elements had since been allowed in more recent claims as WG had carried out further work into individual elements and/or further funding had become available

·        there was no prospect of any claw back of grant funding from specific expenditure and loss of income that had been assessed as and when those claims had been processed; however as with all grants there would be a process of audit and elements may be identified as part of that process

·        whilst there was a current projected overspend of just over £2.3m, it was largely due to delayed expenditure not spent within the 2020/21 financial year as a result of Covid-19.  There were calls for the reasoning behind the projected overspend to be made clearer, and whilst it was accepted that ‘underspend’ was the correct technical term for funding not spent in the allocated financial year, it was agreed that further clarity be provided in future reports.  The final outturn report would include more detail and also proposals that services be permitted to carry forward their underspends for specific purposes.  It was an open and transparent process for Cabinet to consider whether or not to approve the carry forward of service underspends into the next financial year

·        the Leader was supportive of establishing a reserve to help fund work as part of the Destination Management Plan, particularly given the anticipated influx of visitors to the county, highlighting the need to invest in keeping towns clean and tidy and in managing the visitor experience into countryside locations.  Councillor Brian Jones agreed and felt that the surge in visitors needed to be kept under close review to inform future management and ensure sufficient funding to deal with increasing pressures into the summer months.  The Leader confirmed the situation would be monitored and if pressures emerged over the next few months the amount provided for that purpose may need to be reviewed

·        in response to questions from Councillor Meirick Davies, the Lead Member for Finance provided further clarity on the Ysgol Llanfair scheme and assurances that the council’s interests would be protected as part of the legal agreement; in terms of the beneficiary of any future sale it was agreed to look into the matter and report back directly to Councillor Davies in that regard.  In relation to the former school site discussions were ongoing with the Community Council regarding future use and a report thereon would be submitted to the Asset Management Group in May.  Councillor Davies also queried the use of speed restrictions relating to the Waste Service Remodelling scheme and it was agreed that Councillor Brian Jones respond directly outside of the meeting.

RESOLVED that Cabinet –

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

(b)       approve the establishment of a specific reserve with the transfer of £200k to help fund work over the coming summer as part of the Destination Management Plan (detailed in section 6.3 of the report), and

(c)        approve the establishment of a specific reserve with the transfer of £59k to help fund up front project costs relating to the New Ways of Working Project (detailed in section 6.4 of the report).