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 2023/24 and progress against the agreed strategy;

(b)       approve the plans to provide match-funding to support an Empty Homes Grant Scheme to bring empty property back into use, as detailed in Section 6.9 and Appendix 5 to the report, and

(c)        note the use of the capital programme contingency to fund the projected overspend on the Botanical Gardens Depot (phase 1) capital scheme, as detailed in Section 6.10 of the report.

Councillor Gwyneth Ellis presented the report detailing the latest financial position and progress against the agreed budget strategy. [The full Budget Summary Report for 2023/24 had been delayed and would be submitted to a future Cabinet meeting.]

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

·       the net revenue budget for 2023/24 was £250.793m (£233.696m in 2022/23)

·       an overspend of £3.348m was forecast for service and corporate budgets

·       highlighted current risks and assumptions relating to corporate budgets and individual service areas

·       detailed savings and efficiencies and increases in fees and charges (£8.182m)

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

Cabinet was also asked to approve match-funding to support an Empty Homes Grant Scheme and note the use of the capital programme contingency to fund the projected overspend on the Botanical Gardens Depot (phase 1) capital scheme.

The Head of Finance and Audit guided members through the report, drawing attention to the significant overspend already forecast early in the financial year which required careful monitoring and he reported on potential options to manage the overspend which were largely driven by demand-led services.  The risks relating to pay settlements for 2023/24 and energy and other inflations pressures were also highlighted and Cabinet would be updated as the situation evolved.

Councillor Gill German (Lead Member for Education) and officers responded to questions/comments from Councillor Huw Hilditch-Roberts as follows –

·       the Council had previously agreed the programme of Band B projects (Welsh Government’s Sustainable Communities for Learning Programme) and an envelope of funding had been approved to manage that programme with projects brought forward as and when they were ready.  An update was provided on the status of those projects with a view to progressing them as appropriate.  The current economic climate and rising costs may pose a risk to future projects but the present position involved proceeding with the projects as planned.  Any requests for additional funding outside of the funding envelope would need to be taken through the appropriate decision making channels

·       elaborated on the reasoning behind the forecasted overspend, predominantly due to children and adult social care costs which were difficult to predict and a necessary expenditure, together with potential options to manage the overspend and close monitoring of the situation in order to contain those costs going forward.  Coupled with other cost increases and inflationary pressures it was a difficult and challenging financial situation facing the Council with other local authorities in a similar position with increasing pressures on council budgets

·       in response to the suggestion that the 1% efficiencies sought from schools be taken from a 3 year rolling average, Councillor German reported on the partnership approach with schools and ongoing dialogue to find the best way forward together in that regard.

RESOLVED that Cabinet –

(a)      note the budgets set for 2023/24 and progress against the agreed strategy;

(b)      approve the plans to provide match-funding to support an Empty Homes Grant Scheme to bring empty property back into use, as detailed in Section 6.9 and Appendix 5 to the report, and

(c)      note the use of the capital programme contingency to fund the projected overspend on the Botanical Gardens Depot (phase 1) capital scheme, as detailed in Section 6.10 of the report.