Issue - meetings

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

It was resolved –

·      To note the position set out in Appendices A, B and C to the report in respect of the Authority’s financial outturn for 2024/25.

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

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

·      To note that the estimated balance of the Council’s general balances as at 31 March 2025 stands at £18.166m.

The report of the Director of Function (Resources)/Section 151 Officer which set out the financial performance of the Council’s services at the end of Quarter 4, 31 March 2025 was presented for the Executive’s consideration.

Councillor Robin Williams, Deputy Leader and Portfolio Member for Finance and Housing presented the report which projects an overall £3.873m underspend for 2024/25 including Corporate Finance and the Council Tax fund, equating to 2.15% of the Council’s net budget. He reported that the draft outturn position is a marked improvement on the Quarter 3 forecast with the analysis of variances in Table 5 of the report showing a positive movement of £3.11m. The main contributors to the improved position include a £936k underspend in Adult Services  due chiefly to additional grant income, staff vacancies, savings from a new utilities contract and increased income from fees and charges particularly in Highways, Planning and Adult Services.

Councillor Robin Williams noted that changes to eligibility rules for business rates on self-catering accommodation have resulted in many properties reverting to Council Tax thereby increasing the number of properties subject to the second home premium. In anticipation of a large number of potentially successful appeals against these decisions, as well as the  reassessment of properties that meet the new thresholds and return to the business rates register, £900k of surplus funds has been set aside in an earmarked reserve for possible refunds in 2025/26.

The draft outturn position and reported underspend and its impact on the Council’s general balances strengthen the Council’s financial position and will allow greater flexibility when planning the 2026/27 revenue budget. A further report will be presented to the Executive once  the draft Statement of the Accounts for 2024/25 has been completed.

The Director of Function (Resources)/Section 151Officer noted that recent investments in Council buildings aimed at reducing carbon emissions have led to a significant reduction in energy costs in Quarter 4.

Regarding the underspend on the Council’s overall budget for 2024/25, he explained that many of the contributing factors were one-off in nature, such as additional grants unlikely to recur, temporary staff vacancies and increased income driven by heightened demand which may fall back in 2026/27.  He emphasised that the Council’s underlying financial position and  the challenges it faces remain largely unchanged by the developments in 2024/25. The projected budget outturn for 2024/25 will bolster the Council’s general balances, offering  more options when planning the 2026/27 budget but it does not resolve the underlying pressures particularly in Adult and Children’s social care. Children’s Services are projected to report an overspend of £1.948m in 2024/25 despite substantial investment by the Council when setting the budget. Further funding for these services has been included  in the 2025/26 budget with the hope that it will help maintain expenditure within resources. The Council’s general balances have also benefited from additional Welsh Government funding for increased employer contributions for teachers’ pensions along with support for pay,   social services and homelessness pressures. Since provision for pension and staff costs had already  ...  view the full minutes text for item 8