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 2024/25 and progress against the agreed strategy, and

(b)      confirms that the gainshare of £1.2m received from the refinancing of the North Wales Residual Waste Treatment Partnership as set out in paragraph 6.2 of the report be treated as income for the Waste Service and used to offset additional costs.

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 2024/25 was £271.021m (£250.793m in 2023/24)

·       an overspend of £240k was forecast for service and corporate budgets

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

·       savings and efficiencies for the 2024/25 budget (£10.384m)

·       an update on Schools, Housing Revenue Account and Treasury Management.

Councillor Gwyneth Ellis proposed an amendment to the report recommendation to include Cabinet’s approval of the intended use of the one-off receipt from the Council’s share of the refinancing of the North Wales Residual Waste Treatment Partnership to off-set the additional costs in the Waste Service as outlined in paragraph 6.2 of the report, seconded by Councillor Julie Matthews.

The Head of Finance and Audit guided members through the detail of the report.  There was a forecasted overspend of £240k at this early stage in the financial year compared with no underspend when last reported in July.  The main areas of overspend were in Education and Children’s Services and Highways and Environmental Services and to a lesser extent Adult, Social Care and Homelessness which were being offset by underspending on corporate budgets for items including pay and energy which initially occurred late in the financial year 2023/34 and were forecast to recur in 2024/25.  It was stressed that much could change in some of the higher risk areas in the next few months, particularly changes to residential placements in Children’s Services, numbers of homelessness, commissioned care in Adult Social Care and School Transport.  The Housing Revenue Account had reported a slight underspend in year with a forecasted balance to just under £1.3m.  A forecasted fall in school balances had been reported and work was ongoing with schools to try and reduce the expense of some of the use of balances forecasted.

The Lead Member and officers responded to questions raised regarding the one-off receipt which the Council had received from its share of the refinancing of the North Wales Residual Waste Treatment Partnership (NWRWTP).  It was explained that the risks associated with the NWRWTP had diminished since it was set up and as the project progressed from the developmental phase to the operational phase.  The refinancing of the NWRWTP at that later stage given the lesser risk and way they were financed on capital markets had resulted in all five local authorities involved receiving a gainshare.  Work in that regard had been ongoing for some time but given the technical nature of the work required the funds had only been received in the last two weeks.  As it was a one-off receipt it was for Cabinet to decide on its use.  In terms of additional funding required for the Waste Service going forward, the matter would be further debated at Council Workshop on 26 September, a special Cabinet on 1 October, and Communities Scrutiny Committee on 24 October thereby providing opportunities to consider and discuss the detail around service provision and additional resources required.

Having considered the report and amendment to the recommendation it was –

RESOLVED that Cabinet –

(a)      note the budgets set for 2024/25 and progress against the agreed strategy, and

(b)      confirms that the gainshare of £1.2m received from the refinancing of the North Wales Residual Waste Treatment Partnership as set out in paragraph 6.2 of the report be treated as income for the Waste Service and used to offset additional costs.