Issue - meetings

As detailed in the recommendations.

Councillor Johnson introduced the report which provided an update on the Council’s revenue budget position for the 2024/25 financial year in advance of the receipt of the Welsh Local Government Provisional Settlement on 20^th December.

The revised cost pressures and cost reduction options to date were referred to the relevant Overview and Scrutiny Committees throughout October, at which time there was an estimated funding gap of £14.042m.  Feedback from those meetings was reported back to Corporate Resources Overview and Scrutiny Committee on 16^th November.  In addition, two Member workshops were held on 5^th and 10^th October.

The report set out the changes to the 2024/25 additional budget requirement since the last reported position in September. The report also updated on the progress made to identify solutions to bridge the remaining budget gap.  Following receipt of the provisional settlement a briefing would be provided to Members to advise of the impact on the overall 2024/25 budget position.

Whilst progress had been made it should be noted that the Council still had a

major challenge to identify the remaining solutions that would enable it to agree a legal and balanced budget by March next year which it continued to address with urgency.

            The Chief Executive reiterated the bleak position across Wales going into 2024/25.  He commented on the work on planning that had commenced on delivering a strategic programme of service transformation to ensure that the Council was developing cost reductions over the next five years in order to protect its ongoing future financial position and ensure it was further prepared for inevitable future budget challenges.  Whilst those workstreams were to provide financial support from 2025/26 onwards, they did not assist with the immediate budget challenges for 2024/25.

            Areas that could fall in the scope of transformation work were outlined in the report.  The list was not exhaustive and future engagement with Members would be important to ensure that there was an opportunity to contribute and positively influence the programme of activity and ensure that it was progressed on a timely basis.

            The Corporate Finance Manager explained that the biggest new pressure was the increase in the cost of Free School Meals (term time) as well as increased demand in the current financial year.

            With a remaining gap of £11m, he reiterated the comments of the Chief Executive and the areas that needed to be looked at as part of the Strategic Programme of Transformation.  Each portfolio was also looking at how they could achieve 5% of efficiencies. 

RESOLVED:

(a)       That the revised additional budget requirement for the 2024/25 financial year be received and noted; and

(b)       That the progress made and the ongoing work on budget solutions that continue to be urgently addressed to enable the Council to set a legal and balanced budget by March 2024 be noted.