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 2, 2024/25 was presented for the Executive’s consideration.

The report was presented by Councillor Robin Williams, Deputy Leader and Portfolio Member for Finance and Housing and showed that based on information at the end of the second quarter, the projected final end of year position is for an overspend of £504k (0.28%) on the revenue budget. However the situation may change and the report documents the areas where the budgetary pressures are greatest in relation to children and adults social care due mainly to growing demand and the cost of provision. Councillor Robin Williams highlighted that the cost of a children’s social care placement can be as high as £500k per annum in the most complex cases which indicates the kind of pressures which local authorities are having to manage and the need therefore for better funding to help local authorities meet these challenges. While the Council has been prudent in the way it has managed its budget and has drawn on reserves to ensure it sets a balanced budget each year, Welsh Government is asked to recognise the burden on local authorities by increasing the funding available so that critical needs can continue to be met.

The Director of Function (Resources) advised that any eventual overspend on the 2024/25 revenue budget will have to be met from the Council’s reserves which will then have implications for setting the 2025/26 budget. He confirmed that the pay award for non-teaching staff for 2024/25 has been agreed and is broadly covered by the budget but an earmarked reserve for inflationary pressures is available to supplement budgets as required. Likewise the pay award for teaching staff has been settled and while Welsh Government will partly meet the additional cost via grant, the allocation remains to be confirmed and it is likely that the Council will have to fund the additional cost to schools from the earmarked reserve.  

The Section 151 Officer referred to the budgetary pressures on children and adult social care amounting to in the region of £3.4m which will have to be addressed in the 2025/26 budget. This has been partly offset by savings from staff vacancies and robust income figures in Leisure and Highways services which together with reduced costs under corporate and Council Tax headings have brought the projected overall overspend down to £504k. The position could change over the course of the remainder of the financial year and adverse weather conditions and rising demand for services over the winter months can lead to additional costs for the Council. The situation will continue to be monitored closely.

The report also sought the Executive’s approval for amendments to the 2024/25 Fees and Charges Booklet to incorporate new fees consequent upon the introduction of a mandatory licensing scheme under the Public Health Wales Act 2017 for practitioners carrying out special procedures details of which were provided in section 8.

It was resolved –

• To note the position set out in Appendices A, B and C of the report in respect of the Authority’s financial performance to date and expected outturn for 2024/25.
• To note the summary of contingency budgets for 2024/25 as detailed in Appendix CH.
• To note the monitoring of agency and consultancy costs for 2024/25 in Appendices D and DD.
• To agree to the implementation of new, and amendments to fees and charges for 2024/25 as detailed in Appendix E.