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 performance to date and expected outturn for 2025/26.

·      To note the summary of contingency budgets for 2025/26 detailed in Appendix CH.

·      To note the monitoring of agency and consultancy costs for 2025/26 in Appendices D and DD.

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 1 to 30 June 2025 was presented for the Executive’s attention.

Councillor Robin Williams, Deputy Leader and Portfolio Member for Housing and Finance presented the report which forecasted an end of year underspend on the revenue budget of £1,551k (0.79%). He cautioned that projecting the end of year outcome this early on is difficult as the position can change significantly as the year progresses due to factors such as demand for services, particularly children’s care placements, additional grant funding, unforeseen one-off expenditure, vacant posts, pay awards and the funding of increased NI contribution costs.

The Director of Function (Resources)/Section 151 Officer confirmed that pay awards for both teaching and non-teaching staff are now known and will be reflected in Quarter 2 figures. Welsh Government has confirmed partial grant funding to support increased teachers’ pay costs which will be included in next year’s settlement. He highlighted that despite a £2m increase in the annual budget, overspending in Children’s services remains a concern and is a challenge across local authorities currently. On the income side, fees from planning and building regulation applications have fallen but are offset by higher than expected income levels in Leisure and Highways. Core Council Tax income is forecast to exceed the budget by £514k , though this may change during the year as exemptions are applied. The Council Tax premium budget is expected to produce a surplus of £333k following changes to  business rates eligibility rules for self-catering accommodation. This has led to a number of properties reverting to Council Tax and becoming liable for the second homes premium. Appeals against this reclassification are anticipated. The early financial outlook is  positive and if the forecast underspend is realised, it will strengthen the Council’s balances and provide more options in planning for the 2026/27 budget.

The Chair noted that the Executive is mindful of the factors that can affect the year end position. For example,  an earmarked reserve has been established to mitigate the risk of  Council Tax repayments due to successful appeals. While rising costs in children’s care placements are outside the Council’s control, the Cartrefi Clyd programme continues to expand allowing children to be cared for within their own communities, supporting their education and wellbeing while offering a more cost effective alternative to out of county placements.

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 performance to date and expected outturn for 2025/26.

• To note the summary of contingency budgets for 2025/26 detailed in Appendix CH.
• To note the monitoring of agency and consultancy costs for 2025/26 in Appendices D and DD.