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, B and C of the report in respect of the Authority’s financial performance to date and expected outturn for 2024/25.

·      To note the summary of Contingency budgets for 2024/25 as detailed in Appendix CH.

·      To note the monitoring of agency and consultancy costs for 2024/25 in Appendices D and DD.

The report of the Director of Function (Resources)/Section 151 Officer setting out the financial performance of the Council’s services including variances at the end of Quarter 1 2024/25 was presented for the Executive’s consideration.

The report was presented by Councillor Robin Williams, Deputy Leader and Portfolio Member for Finance who reported that the initial projection based on information at the end of the first quarter of 2024/2025 is that the revenue budget will be overspent by £90k (0.05%) for the year ending 31 March 2025. While that is a satisfactory position, it is early in the financial year, the financial prospects are uncertain and the situation can change. It is hoped that the UK Chancellor’s budget on 30 October will provide some assurance regarding the funding settlement for the next few years mindful also of the warnings that have been issued about the black hole in the public finances.

The Director of Function (Resources)/Section 151 Officer referred to the pressure on the Council’s services with the overall combined position for the Council’s services showing a forecasted overspend of £1.966k at the end of the financial year as reflected in Table 4 of the report. An analysis of the forecasted variance by reasons is provided in Table 5. The main area of concern is within Children’s Services where both the number of children being placed with out of county providers and the cost of each placement have increased. This is not an issue that is unique to Anglesey with most councils facing the same cost and demand pressures on their children’s social care budgets. The general financial position is improved due to staff vacancies and the Council’s overall income is projected to exceed the budget by £620k with income levels in Leisure and Highways services being significantly higher than the income target. While is it is difficult to accurately forecast the end of year financial position this early in the year on the basis of one quarter’s actual expenditure, there are factors that are adding to the uncertainty which relate primarily to the pay awards for non-teaching staff and teaching staff which have yet to be resolved and will impact on the Council’s final financial position as detailed in section 8.2 of the report.

The Executive noted the challenges facing Children and Families’ services which are replicated across councils in Wales and the UK nationally, as well as the uncertainty around unresolved pay awards which are beyond the Council’s control but could significantly impact its budget.

It was resolved –

• To note the position set out in Appendices A, B and C of the report in respect of the Authority’s financial performance to date and expected outturn for 2024/25.
• To note the summary of Contingency budgets for 2024/25 as detailed in Appendix CH.
• To note the monitoring of agency and consultancy costs for 2024/25 in Appendices D and DD.