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 2021/22 and progress against the agreed budget strategy, and

(b)       approve the business case for the development of the former Prestatyn library site as recommended by the Strategic Investment Group (as detailed in Section 6.7 of the report and Appendices 5 and 6 to 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 2021/22 was £216.818m (£208.302m in 2020/21)

·        an overspend of £0.835m was forecast for service and corporate budgets

·        detailed agreed savings and efficiencies worth £4.448m relating to fees and charges, operational efficiencies, changes in service provision and schools

·        highlighted current risks and assumptions relating to individual service areas, corporate budgets and schools together with the impact of coronavirus and position on funding claims to the Welsh Government

·        a general update on the Housing Revenue Account and Housing Capital Plan, Treasury Management and Capital Plan with an update on major projects.

Cabinet approval was also sought for the business case for the development of the former Prestatyn library site following a verbal report to Cabinet at the last meeting.

The Head of Finance provided an update on Welsh Government funding claims and phasing out of particular elements.  Whilst no significant changes were anticipated in terms of projections there would be an impact on services who would be required to fund those elements in the future which may result in an increase in some overspends or decrease in some underspends in services areas.  Reference was also made to the recent report of the 3 year spending review and autumn budget to be announced in October which was a positive step given the potential for Welsh Government to be in a position to provide 3 year indicative figures for the revenue support grant in addition to a specific announcement for next year’s settlement.

The following matters were raised during debate –

·        members were pleased to note the future potential for 3 year budgets from the Welsh Government which the Leader and Deputy Leader had been calling for in order to aid better financial planning, providing greater certainty in future years and allow flexibility in budget setting to facilitate the delivery of larger projects and cost savings

·        financial support from the UK Government in respect of the furlough scheme and uplift in Universal Credit would soon cease and Councillor Mark Young highlighted the financial impact on families and queried the processes in place in terms of Council Tax and financial management.  In terms of Council Tax collection and the wider economy it was explained that local authorities had been submitting monthly returns to the Welsh Government in order to closely monitor the position.  The Council had robust plans and processes in place and work was ongoing, including identifying service pressures to inform the Medium Term Financial Plan.  Much was dependent on the local government settlement which was difficult to predict but it was anticipated that for next year a balanced budget could be set without the need for large savings or cuts to services although future years’ settlements would likely be more difficult.  With regard to gas suppliers, figures for predicated price increases were being considered and given that many office based costs had decreased due to home working it was hoped that budgets could be reassigned to cover the cost increase.  Once the draft settlement had been received from the Welsh Government proposals for the budget would be brought forward for members’ consideration

·        officers responded to questions regarding redevelopment of the former Prestatyn library site confirming the need for sustainable drainage to conform to current standards/practices and provide attenuation on the site, and the building had been designed in consultation with the Conservation Team to ensure it complemented the existing buildings in the area.  The proposal was for a 3½ storey building in order to accommodate two extra households in the attic space.  The development had been granted planning permission

·        lead members and officers responded to questions from Councillor Meirick Davies regarding the Waste Service Remodelling project including the robust governance arrangements in place and progress to date, confirming the project was on track to be delivered within the overall timescale and budget envelope.  All multi-year projects had elements of budget re-profiling and potential expenditure slippage during the project’s lifetime.  Councillor Brian Jones advised that he was calling for a Council Briefing/Workshop on the project to provide an opportunity to update members and answer questions in more detail.

RESOLVED that Cabinet –

(a)       note the budgets set for 2021/22 and progress against the agreed budget strategy, and

(b)       approve the business case for the development of the former Prestatyn library site as recommended by the Strategic Investment Group (as detailed in Section 6.7 of the report and Appendices 5 and 6 to the report).