Agenda item

To consider a report by Councillor Gwyneth Ellis, 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 2022/23 and progress against the agreed budget strategy, and

(b)       approve the plans to spend a capital grant (£1.203m) to upgrade schools’ kitchens and dining facilities to accommodate the Universal Primary Free School Meals scheme as detailed in section 6.9 of the report and Appendix 5 to the report.

Councillor Gwyneth Ellis presented the report detailing the latest financial position and progress against the agreed budget strategy.

A summary of the Council’s financial position was provided as follows –

·       the net revenue budget for 2022/23 was £233.693m (£216.818m in 2021/22)

·       an overspend of £2.189m was forecast for service and corporate budgets (£5.535m overspend last month)

·       highlighted current risks and assumptions relating to corporate budgets and individual service areas together with the impact of coronavirus and inflation

·       detailed service savings and fees and charges increases (£0.754m); no savings having been requested from Community Support Services or Schools

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

Cabinet was also asked to approve plans to spend a capital grant (£1.203m) to upgrade schools’ kitchens and dining facilities to accommodate the universal primary free school meals scheme.

The Head of Finance and Property reported on actions taken to reduce the forecasted overspend from £5.535m last month to £2.189m which included an underspend in capital financing costs largely due to project delays; £400k from contingency following final virements on the pay settlement; £230k arising from new ways of working savings relating to staff mileage, and around £1m service savings from delays to recruitment and use of reserves.  The importance of reducing the underspend was reiterated which would allow around £2.7m from the budget mitigation reserve to help fund the budget for the next year to allow time to make the necessary budget adjustments for the following year. Whilst the budget position had much improved from the previous month and reflected the situation to date, there may be other pressures identified going forward, such as winter maintenance given the current cold conditions.  Finally, reference was made to the recommendation to approve plans to spend a capital grant to upgrade schools’ kitchens and dining facilities which had been supported by the Budget Board.

Councillor Gill German elaborated on the roll out of the universal free school meals scheme on a phased basis as part of the partnership agreement between Welsh Labour and Plaid Cymru at Welsh Government level for the benefit of every primary school child.  She referred to the challenges in terms of kitchen upgrades and facilities and paid tribute to the Catering Team who had worked tirelessly to deliver the scheme and as a result it would be rolled out early to all Year 1 pupils in Denbighshire from January 2023.  The capital grant was vital to implementing the free school meal offer and ensuring the necessary infrastructure was in place.

Councillor German also reported on the recent Foster Carers Christmas event and the excellent offer for local authority fostering including the level of care and mutual support in the service.  The budget pressure in that service area was recognised and assurances were provided that work would be ongoing to tackle the budget pressure and further promote the fostering service and its benefits in the new year.

RESOLVED that Cabinet –

(a)      note the budgets set for 2022/23 and progress against the agreed budget strategy, and

(b)      approve the plans to spend a capital grant (£1.203m) to upgrade schools’ kitchens and dining facilities to accommodate the Universal Primary Free School Meals scheme as detailed in section 6.9 of the report and Appendix 5 to the report.