Agenda item

To consider a report by Councillor Julian Thompson-Hill, Lead Member for Finance, Corporate Plan and Performance (copy enclosed) detailing the latest financial position and progress against the agreed budget strategy.

RESOLVED that Cabinet notes the budgets set for 2016/17 and progress against the agreed budget strategy.

In the absence of Councillor Julian Thompson-Hill, the Chief Finance Officer presented the report detailing the latest financial position and progress against the agreed budget strategy.  A summary of the report elements was provided –

·        the council’s revenue budget for 2016/17 with no variances to report at this stage in the financial year – the impact of the 2015/16 year end position was being finalised for includsion in the Final Outturn report to Cabinet in June

·        91% of savings had been achieved in full in 2015/16 with the remaining 9% projected to be achieved in 2016/17 – an initial assessment of the 2016/17 savings would be provided in next month’s regular Cabinet Finance report

·        background on the Welsh Government revenue grant funding position and an update on the revenue grants due to be received in 2016/17

·        highlighted a number of pressures within the overall budget requiring management action by specific services

·        services permitted to carry forward significant underspends to fund specific projects in the new financial year would be detailed in next month’s Final Outturn report, and

·        a general update on the Housing Revenue Account, Housing Capital Plan and the Capital Plan (including the Corporate Plan element).

The following matters were raised during debate –

·         the final local government settlement had resulted in a cut to the Revenue Support Grant of 1.3% but concerns were expressed that, taking into account cuts to direct grants, the ‘real’ settlement was closer to 1.8%.  Cabinet noted the work of local government finance officers and the WLGA in reviewing this funding element and costs of administering grants and raising awareness of the issue.  The Chief Executive advised that the Leader had requested an early meeting with the new Finance and Local Government Secretary and would include this issue for discussion as an area of concern

·         in response to a question from Councillor Meirick Davies, the Chief Finance Officer explained that the carry forward of service underspends had been approved by Cabinet in principle – with regard to the remedial works at Wigfair, Cefn Meiriadog this scheme had been approved and it was agreed that the Chief Finance Officer provide a written response to Councillor Davies thereon

·         Councillor Huw Jones reported upon suggested changes to the administration of funding for leisure initiatives such as dragon sports believing that local authorities would be disadvantaged as a result

·         in response to a question from Councillor Eryl Williams regarding ‘topslicing’ of the Revenue Support Grant, the Chief Finance Officer advised that a breakdown of specific grants affected could not be provided as there was no evidence trail

·         a number of specific pressures were highlighted relating to School Transport; North and Mid Wales Trunk Agency Contract; Community Services inflationary pressures and the growing number of Schools moving to deficit balances.  In respect of School Transport officers provided an update on the need to review the policy following a series of challenges and for it to be funded appropriately.  The shortage of nursing care was also flagged up as a significant challenge and pressure which needed to be addressed.

RESOLVED that Cabinet notes the budgets set for 2016/17 and progress against the agreed budget strategy.