Agenda and minutes

In the absence of the Chair, Councillor Douglas Fowlie, the meeting was chaired by the Vice-Chair, Councillor Dyfed Wyn Jones.  Councillor Sonia Williams was elected to serve as Vice-Chair of the Committee for this meeting only.

To receive any declaration of interest from any Member or Officer in respect of any item of business.

Councillor Sonia Williams declared a personal interest only on the basis of her relationship to the Portfolio Member for Finance.

To present the minutes of the previous meetings of the Corporate Scrutiny Committee held on the following date –

·      16 January 2024 (morning meeting)

·      16 January 2024 (afternoon meeting)

The minutes of the previous meetings of the Corporate Scrutiny Committee held on the following dates were presented and were confirmed as correct –

·      16 January 2024 (morning meeting)

·      16 January 2024 (afternoon meeting)

To present the report of the Director of Function (Resources)/Section 151 Officer and the Scrutiny Manager.

The report of the Scrutiny Manager was presented for the Committee’s consideration. The report outlined the context to the 2024/25 Budget setting process along with the key issues and questions for Scrutiny in evaluating the Executive’s final revenue budget proposals. The report of the Director of Function (Resources)/Section 151 Officer to be presented to the 29 February, 2024 meeting of the Executive setting out the detailed revenue budget proposals for 2024/25 for final review and agreement ahead of the 7 March 2024 meeting of Full Council was attached at Appendix 1.

Councillor Robin Williams, Deputy Leader and Portfolio Member for Finance outlined the context to the final revenue budget proposals for 2024/25 saying that at its meeting on 23 January 2024 the Executive proposed a budget for 2024/25 of £184.219m which given the provisional AEF of £126.973m would require an increase of 10.9% in Council Tax and the use of £4.425m of the Council’s general balances to balance the budget. The initial draft budget proposals also entailed budget savings/reductions including capping the inflation increase from the delegated schools budget by 2.5%.  A short public consultation process on the budget proposals was subsequently undertaken the outcome of which is summarised in Appendix 2 to the report with education and schools, supporting vulnerable adults and children, and waste collection and recycling being cited as respondents’ main priorities.

Councillor Robin Williams said that there have been a number of developments since the initial draft budget proposal for 2024/25 was issued including the  finalisation of the budget decisions in respect of levying bodies and other organisations which receive a contribution from the Council, an increase of £332k in Anglesey’s Aggregate External Finance following on from additional funding to Welsh Government as a consequential of a rise in funding for councils in England , and the transfer of three revenue grants into the final settlement (para 5.4 refers). In drawing up the final budget proposals, a number of budgets have been reviewed and this has allowed the Executive some flexibility around the final proposal. These changes are explained in section 5.5 of the report and the impact of all the changes on the revenue budget is set out in Table 2 at paragraph 5.6 resulting in a revised net revenue budget for 2024/25 of £183.459m with revised funding of £184.82m giving surplus funding of £1.373m.

With regard to the various options considered by the Executive to match the revised funding with the revised budget the proposed use of reserves to balance the 2024/25 budget is significant and at the highest level for a number of years. It is the Section 151 Officer’s recommendation that the level of reserves should not fall below 5% of the net revenue budget which is the minimum level of general balances set by the Executive. Having considered all of these factors, the Executive’s final revenue budget proposal amends the initial proposal in the ways set out below and results in a revised net revenue budget for 2024/25 of £184.164m which  ...  view the full minutes text for item 3.

To present the report of the Director of Function (Resources)/Section 151 Officer and the Scrutiny Manager.

The report of the Scrutiny Manager was presented for the Committee’s consideration. The report outlined the context to the 2024/25 Budget setting process along with the key issues and questions for Scrutiny in evaluating the Executive’s capital budget proposals. The report of the Director of Function (Resources)/Section 151 Officer to be presented to the 29 February, 2024 meeting of the Executive setting out the proposed capital budget for 2024/25 for recommendation to the Full Council was attached at Appendix 1.

Councillor Robin Williams, Deputy Leader and Portfolio Member for Finance presented the report and he referred to the funds available to finance the capital programme for 2024/25 as shown in Table 1 of the report. The HRA covers income and expenditure relating to the Council’s housing stock and its funds cannot be used for any other purpose. The General Capital funding from Welsh Government for 2024/25 is £12k higher than the allocation for 2023/24 and is in line with funding levels seen over the past 12 years. There has been no significant increase in the funding despite the fact that its value has been significantly eroded by inflation over this period meaning that it is becoming increasingly challenging to maintain and invest in the Council’s capital assets. The recommended capital programme for 2024/25 is summarised in Table 3 of the report and totals £43.838m.

The Director of Function (Resources)/Section 151 Officer advised that the options regarding capital expenditure and investment are limited because of the constraints on capital resources. The Executive has considered the feasibility of taking out unsupported borrowing but due to interest rate levels and the fact that the cost of unsupported borrowing would have to be met from the revenue budget, which is already under pressure, this option has been discounted in 2024/25. The Communities for Learning Programme currently only includes the completion of the Ysgol y Graig extension. The proposed HRA programme for 2024/25 will see continued investment in the existing stock to ensure continued compliance with the WHQS and will be funded as outlined in section 7 of the report which includes an element of unsupported borrowing which is planned as part of the HRA Business Plan.

Councillor Geraint Bebb, Chair of the Finance Scrutiny Panel reported from the Panel’s 15 February 2024 meeting at which consideration was given to the 2024/25 capital budget proposals. The issues discussed by the Panel included the limited sources of capital funding available to the Council for major projects apart from the HRA which can only be spent on the Council’s housing stock, the resources that would be needed to enable the Council to invest in its assets in the medium term and the challenges in completing disabled facilities grant projects which has implications for the Council’s ability to spend its capital budget resources in a timely way. Having considered all the information and evidence presented the Panel was supportive of the capital budget proposals for 2024/25 as presented and recommended the proposals to the Corporate Scrutiny Committee.

The  ...  view the full minutes text for item 4.

The Chair of the Panel to provide an oral report.

Councillor Geraint Bebb, Chair of the Finance Scrutiny Panel reported on the outcome of the Panel’s meetings on 15 and 22 February 2024 to consider the 2024/25 final draft Revenue Budget proposals and capital budget proposals as referred to in the narrative on items 2 and 3 above.

To present the report of the Scrutiny Manager.

The report of the Scrutiny Manager incorporating the Committee’s Forward Work Programme for 2024/25 was presented for consideration and review.

The Scrutiny Manager updated the Committee on additions to the Forward Work Programme in relation to the review requested by the Committee of local performance against two of the Housing Service PIs. A report on the outcome of the review of Disabled Facilities Grants is scheduled for the Committee’s March 2024 meeting and a report by the Scrutiny Task and Finish Group with regard to re-letting Council properties is scheduled for the Committee’s April 2024 meeting.

It was resolved –

·      To agree the current version of the forward work programme for 2023/24 with the additions outlined by the Scrutiny Manager.

·      To note the progress thus far in implementing the forward work programme.