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 service budgets for 2016/17.

RESOLVED that Cabinet –

(a)       notes the budgets set for 2016/17 and progress against the agreed budget strategy;

(b)       approve the draft Medium Term Financial Plan (attached at Appendix 5 to the report)

(c)        approve the recommended actions to mitigate the effects on the financial outturn of savings either being deferred until 2017/18, or not being achieved at all as detailed in the table in paragraph 6 of the report, and

(d)       approve the recommendation of the Strategic Investment Group to invest £4.4m in the first phase of the waterfront development project in Rhyl.  The recommendation incorporates approval of a funding package that includes earmarking the capital receipt anticipated from the sale of the former Honey Club site in Rhyl (as detailed in tables in paragraph 6 of the report).

Councillor Julian Thompson-Hill presented the report detailing the latest financial position and service budgets for 2016/17.  He provided a summary of the Council’s financial position as follows –

·        a net overspend of £0.351m was forecast for service and corporate budgets

·        60% of savings had been achieved to date (target 5.2m) with a further 10% making good progress; 25% would be deferred and achieved in 2017/18 with only 5% of savings not being achieved within the timeframe

·        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).

Councillor Thompson-Hill elaborated upon other financial matters within the report and Cabinet was asked to approve the draft Medium Term Financial Plan; actions to mitigate the effects on the financial outturn of savings either being deferred or not achieved, and the recommendation of the Strategic Investment Group to invest £4.4m in the first phase of the waterfront development project in Rhyl.

The following matters were raised during debate –

·         Councillor Eryl Williams highlighted the impact on the Council’s budget arising from cuts to grant funding from the Welsh Government which were outside the Council’s control – he asked that details of those funding cuts be included within the Medium Term Financial Plan for transparency (page 71, Table 4 Welsh Government Budget).  Officers indicated that the treatment of grants had been included in the submission to the Local Government Finance Commission as part of the finance review 

·         Cabinet was pleased to note the significant investment in major projects including Rhyl Waterfront and also highlighted the Nova’s success.  Councillor Eryl Williams was pleased to report on progress with major projects in terms of the 21st Century Schools Programme advising that Denbighshire was at the forefront in terms of investing in modernising schools which was in contrast to other councils who were not in a position to invest.  He gave credit to both previous council and current council for the long term strategic vision for schools and its realisation.  In terms of future funding availability the Welsh Government’s Programme for Government had committed to investing nearly £2 billion in new and refurbished schools which would provide an opportunity to continue the modernisation programme

·         Councillor David Smith referred to the need to address the continual overspend on the School Transport budget with a view to providing additional funding to meet the full cost of provision in the base budget – there was also a need to meet the additional £175k cost incurred following the collapse of GHA coaches

·         Councillor Jason McLellan voiced his concerns regarding the budget setting process and timetable.  Councillor Thompson-Hill and officers submitted that the budget process was robust and responded to the concerns raised detailing the budget process to date and proposed next steps in order to set the budget for 2017/18.  It was noted that the budget process would be discussed in greater detail at the next meeting of the Corporate Governance Committee.

RESOLVED that Cabinet –

(a)       notes the budgets set for 2016/17 and progress against the agreed budget strategy;

(b)       approve the draft Medium Term Financial Plan (attached at Appendix 5 to the report)

(c)        approve the recommended actions to mitigate the effects on the financial outturn of savings either being deferred until 2017/18, or not being achieved at all as detailed in the table in paragraph 6 of the report, and

(d)       approve the recommendation of the Strategic Investment Group to invest £4.4m in the first phase of the waterfront development project in Rhyl.  The recommendation incorporates approval of a funding package that includes earmarking the capital receipt anticipated from the sale of the former Honey Club site in Rhyl (as detailed in tables in paragraph 6 of the report).

At this juncture (12 noon) the meeting adjourned for a refreshment break and the Leader – Councillor Hugh Evans left the meeting.  Upon resuming the proceedings the Deputy Leader – Councillor Eryl Williams took the Chair.