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 note the budgets set for 2023/24 and progress against the agreed strategy.

Councillor Gwyneth Ellis presented the monthly 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 2023/24 was £250.793m (£233.696m in 2022/23)

·       an overspend of £2.780m was forecast for service and corporate budgets

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

·       detailed service savings and efficiencies for the 2023/24 budget (£8.172m)

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

The Head of Finance and Audit guided members through the detail of the report.  There had been a slight decrease in the forecasted overspend on service and corporate budgets at £2.780m with a movement of £60k compared to last month.  Main areas of overspend continued to be Education and Children’s Services, Highways and Environmental Services and Adults Social Care and Homelessness, with minimal changes from last month.  The Housing Revenue Account had reported a slight reduction in underspend at £110k from £126k due to a reduction in rent with a forecast year-end balance of £812k.  There was a slight change in the forecasted use of school reserves at £7.026m compared to £7.054m last month.  The usual appendices had been included on the Capital Plan and major projects.

Due to closure of the Council’s accounts at the end of the financial year the regular finance monitoring report would not be submitted to Cabinet in April; the finance report for April would focus on the Medium-Term Financial Strategy and Medium-Term Financial Plan and include a high level strategy for future budget setting.  The financial outturn report for 2023/24 would be submitted to Cabinet in May.

The following matters were raised during the ensuing debate –

·       Rhyl Queen’s Market Redevelopment – the facility had been handed over to the Council in February.  Assurances were provided that there was no intention to seek additional funding with sufficient budget available to complete the project ready for operation.  Due to reasons of commercial sensitivity further details regarding the appointment of an operator and opening of the facility could not be given at this time but that information would be shared with members and the wider public as soon as it was possible to do so.  The Corporate Director: Economy and Environment confirmed that he would be willing to arrange a tour of the facility and asked members to let him know if they wanted to attend.  He also agreed to ascertain the costs to the Council of taking interim responsibility for the facility and report back to Councillor Huw Hilditch-Roberts thereon

·       Sustainable Communities for Learning – it was confirmed that the expenditure to date would be split between Welsh Government (WG) and the Council (DCC), which for schools with additional learning requirements amounted to a split of WG 75% / DCC 25% and for other schools a split of WG 65% / DCC 35%

·       Underspend due to vacancy management – this phrase appeared a number of times in the Service Variance Narrative (Appendix 2 to the report) and reflected recruitment controls in place to consider every vacant post before it was filled with a view to reducing the overspend in service budgets.  The process was followed for vacancies across the council and not just for a specific service area and provided evidence that management across the council realised the severity of the financial situation and were working to address it.  It was likely that other local authorities were also taking the same approach to vacancy management.

RESOLVED that Cabinet note the budgets set for 2023/24 and progress against the agreed strategy.