Agenda item

To submit a report by 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 4 2023/24 was presented for the Executive’s consideration. The report set out the revenue budget outturn position for the 2023/24 financial year and included an analysis of budget variances.

The report was presented by Councillor Robin Williams, Deputy Leader and Portfolio Member for Finance as showing an overall projected financial position for 2023/24 including Corporate Finance and the Council Tax Fund of an underspend of £1. 732m.This is 0.99% of the Council’s net budget for 2023/24. Whilst this is a positive outcome it must be borne in mind that £3.78m from the General Reserve was used as a contribution towards balancing the 2023/24 budget so the result in effect reduces the level of the contribution from the General Reserve.

The Director of Function (Resources)/Section 151 Officer referred to rateable value refunds in relation to Oriel Ynys Môn and other property as having contributed an additional £1.6m towards the Council’s income which is to be transferred to the General Reserve. Most services excepting Children and Families Services are underspent with the latter reporting a projected overspend of £1.715m at year end as a result of increased demand for placements and placement costs. The financial performance of Adults’ Services has improved due to additional grant income. Children’s Services represent the greatest financial risk to the Council going forward as a small change in the number of cases can have a significant impact on the cost of the service overall and it is an area which Welsh Government is reviewing.  Services were also asked to reduce costs in the year by not filling vacant posts for as long as possible as a short-term strategy.

Councillor Gary Pritchard, Deputy Leader and Portfolio Member for Children, Youth and Housing Services said that pressures on children’s social care demand and budgets are being felt nationally with the cost-of-living crisis being a factor. While the Council has invested significantly in inhouse foster care provision and small group homes as well as in preventative services, the challenges in terms of demand cannot be predicted but are ones which the Council must respond to as a statutory duty.

The Director of Social Services advised that specialist provision comes with the highest costs for those individuals who have experienced high level trauma whose needs the Council is not able to meet because of the specialism required and the associated cost. While the overspend in Children’s Services would have been significantly higher had the Council not made the investment in developing its foster care and small homes provision, more complex cases including children with disabilities often require out of area provision which is costly.

The Chief Executive also referred to changing demographics and to Anglesey’s ageing population which has implications as regards the demand for care services. The current funding system is unsustainable and needs to be reformed in light of the growing challenges in social care and pressures on budgets otherwise more councils will find themselves in financial difficulties because they are unable to manage demand within a funding system that is not fit for purpose.

It was resolved –

• To note the position set out in Appendices A and B of the report in respect of the Authority’s financial outturn for 2023/24.
• To note the summary of Contingency budgets for 2023/24 detailed in Appendix C.
• To note the monitoring of agency and consultancy costs for 2023/24 in Appendices CH, D and DD.
• To note the estimated balance of the Council’s general balances as at 31 March 2024 stands at £15.694m.