Issue - meetings

To submit a report by the Director of Function (Resources)/Section 151 Officer.

It was resolved –

·                To note the position set out in Appendices A and B in respect of the Authority’s financial performance to date and expected outturn for 2022/23.

·                To note the summary of contingency budgets for 2022/23 as detailed in Appendix C.

·                To note the monitoring of agency and consultancy costs for 2022/23 in Appendices CH and D.

·                To approve the transfer of the £100k underspend for increasing broadband in schools to an earmarked reserve to fund the broadband improvements in 2023/24 which have been delayed due to the completion of proper procurement processes.

The report of the Director of Function (Resources)/Section 151 Officer setting out the financial performance of the Council’s services at the end of Quarter 2 of the 2022/23 financial year was presented for the Executive’s consideration.

Councillor Ieuan Williams, Portfolio Member for Education and the Welsh Language presented the report and provided background information about the budget that was set for 2022/23. The overall projected financial position for 2022/23 including Corporate Finance and the Council Tax fund is a projected underspend of £1.128m which is 0.71% of the Council’s net budget for 2022/23. However, there is a significant amount of uncertainty over the final position due to additional costs arising from staff pay awards and rising energy prices; higher prices to be paid for the majority of the goods and services bought by the Council as a result of inflation; increased demand and costs associated with the winter months as well as a general increase in demand because of the cost of living crisis. The projected underspend also includes the use of £3m of reserves to respond to additional pressures. Although the headline forecast figure therefore indicates a positive position for 2022/23, it is not a true reflection of the situation and it is highly probable that at year end the revenue budget will be closer to break even or possibly overspent. The underlying position after taking out the use of reserves and additional grant funding is significantly worse with an underlying deficit of over £4m which will have to be addressed when setting the 2023/24 budget.

The Director of Function (Resources)/Section 151 Officer affirmed the Portfolio Member’s comments and said that the financial situation is likely to deteriorate in the second half of the year meaning also that setting the 2023/24 budget will be very challenging because of the factors referred to by the Portfolio Member which are set out in detail in the report. He referred to particular concerns regarding the position in relation Children and Adults’ Social Care which are under increasing pressure from rising demand and are forecast to overspend to a significant degree even though additional grants and reserves are being used to reduce the overspend. On the other hand a projected surplus in the Waste Management Service’s budget primarily from the sale of green waste subscriptions and recyclable materials provides an opportunity to adjust the income budget upwards. While the current core Council Tax income is forecasted to exceed the budget as is the Council Tax Premium budget, the situation can change as people’s circumstances change and appeals are made and discounts and exemptions are applied, and also as properties are transferred from the domestic to the business rates register. Any end of year overspend will have to be funded from the Council’s general reserves which in turn reduces the scope to use reserves to balance the 2023/24 budget the setting of which is expected to be a very difficult task. The revenue budget will be reviewed monthly going into the second half of  ...  view the full minutes text for item 7