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.

Councillor Julian Thompson-Hill presented the report detailing the latest financial position and progress against the agreed budget strategy.  He provided a summary of the Council’s financial position as follows –

·        a net overspend of £0.402m was forecast for service and corporate budgets

·        42% of savings had been achieved to date (target 5.2m) with a further 25% making good progress – a number of savings were being reviewed and the results would be included in future monitoring reports

·        highlighted current risks and assumptions relating to individual service areas

·        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 –

·         Councillor David Smith referred to the need for the continual overspend on the School Transport budget to be addressed in the next budget round with a view to providing additional funding to meet the full cost of provision

·         additional cost was also being incurred by the Council as a result of GHA Coaches going into administration as the Council tried to cover as many of those bus services as possible.  Councillor Smith reported upon a forthcoming meeting with the Minister for Economy and Infrastructure to discuss what support would be available from the Welsh Government in that regard.  Members discussed the implications both in terms of cost and future viability of particular bus routes and it was suggested that concerns regarding the potential loss of bus services, particularly in rural areas, also be raised with the Minister.  Officers provided assurances regarding the robustness of the Council’s tendering process for services, including price and quality criteria, and contractors would need to meet rigorous due diligence tests prior to the contract award.  Unfortunately in the current financial climate the position of companies could change quite rapidly.  In terms of future transport provision a revised model or more innovative approach involving communities may be required.  The Leader recommended that the Rural Transport Forum be resurrected, or a similar transport forum be established, to discuss the concerns and the way forward

·         reference was made the pressures around the North and Mid Wales Trunk Road Agency (NMWTRA) contract with some staff having been moved to other service areas to reduce cost pressures and works had been limited to snow clearance and gritting.  Concerns regarding the role of NMWTRA could be raised with the new Minister at the next meeting in October to ascertain whether he shared the view of the previous Minister.  Councillor Huw Williams highlighted his concern regarding the poor condition of the A5 and Councillor David Smith explained that responsibility lay with the Welsh Government and recommended he contact the Minister directly in that regard

·         Councillor Eryl Williams referred to Cabinet’s decision to set up a task and finish group to review school balances and advised that work had started in that regard.  He also referred to the Ruthin Primary Schools project as detailed in Appendix 4 to the report and asked that, for transparency, future reports also include the total overall project cost in addition to the feasibility/design element

·         it was noted that inflationary pressures such as implementation of the National Living Wage and increase in care home fees would be met through service reserves in 2016/17 but it was a short term fix which would need to be addressed over the longer term

·         in response to a question regarding other school refurbishment projects requiring capital investment, Councillor Eryl Williams reported that work had been carried out to identify areas for investment in anticipation of Band B funding which would be launched shortly.

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