Agenda item

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

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 1 of the 2021/22 financial year was presented for the Executive’s consideration.

The Portfolio Member for Finance reported that the Council set a net budget for 2021/22 with net service expenditure of £147.420m.  The overall projected financial position for 2021/22 is projected of an underspend of £2.540m.  However, the Portfolio Member expressed that whist it is projected that an underspend will occur within this year’s budget it must be realised that there is a prediction that a substantial funding gap will occur in 2022/23. 

The Director of Function (Resources)/Section 151 Officer reported that the report sets out the financial performance of the Council’s services at the end of Quarter 1, 30 June, 2021.  He noted that it is difficult to predict the final year-end position as it is uncertain as to pressures on Adults’ Services and Children’s Services will faced and it is also unclear when some of the Council’s services will return to normal and as to what the additional costs will be in providing those services.  The Welsh Government has stated that further funding will be released to cover the loss of income due to the pandemic during the remainder of the financial year, but this has not been taken into account in the forecast.  The Director further said that winter costs could worsen the outturn estimated costs on the highways authority together with winter pressures on hospitals with people discharged from hospital and requiring services afforded by the Council. 

The Director of Function (Resource)/Section 151 Officer said that it is anticipated that inflation will rise which will have effect on the costs of the Council.  The pay increase for staff has still not been agreed with at present an offer of 1.75%. The Director said that funding has been put aside within the budget.  He noted that there is still a trend with houses converting to business rates and also can be backdated up to two/three years which again put pressure on the Council’s budget.  He noted that the introduction of the Cartrefi Clyd project, the increase in Foster Carers and the location of pupils out of county and the new school meals contract has decrease has contributed to the underspend.    The introduction of a green waste charge has increased the funding that was anticipated.  He further noted that with staff working from home and more meetings held virtually has decreased travelling costs and office materials and energy costs have also seen a decrease. 

The Chair of the Finance Scrutiny Committee reported that the Panel considered that it was premature to come to a conclusion about service budget performance on the basis of Q1 data as much can change in the coming months. Elements likely to generate in year savings include schools’ out of county placements; green waste income.  He noted that the Panel considered that there was a need to monitor the budget pressures in Adults’ Services and the Children and Families Service’s budget. Concern as regards to the condition of roads and highways were expressed and the need to consider completing essential road maintenance work this year.

Councillor Carwyn Jones wished it to be noted the encouraging work undertaken as regards to the children in care within the Children and Families Department.

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 2021/22.  This position is dependent on the continued support from Welsh Government to fund the loss of income and the additional costs which the Council face during the remainder of the financial year as a result of the coronavirus;

·           To note the summary of Contingency budgets for 2021/22 detailed in Appendix C;

·           To note the position of the invest to save programmes in Appendix CH;

·           To note the monitoring of agency and consultancy costs for 2021/22 in Appendices D and DD.