Agenda item

As detailed in the recommendations, with recommendation (d) being:

That 1% of additional funding from Welsh Government to help meet the costs of the pay award in-year for the period 1^st September 2018 to 31^st March 2019 be distributed in full to our local schools network once the funds have been received.  Schools will be required to find the remaining 1% of the award from within their own budgets for this period.  In planning the budget for 2019/20 it is the Council’s intention that it will make provision for an uplift in the base funding for schools to meet 1% of the pay award, as a minimum.  It is the Council’s aspiration to be in a position to provide an uplift for the full amount.  However, the Council is not in a position to confirm either the minimum or the aspirational provision at this point in the national budget setting process as the Council faces a potentially unmanageable gap in its budget-setting forecast for 2019/20, with such a poor provisional Local Government Settlement as outlined by Welsh Government.

The Corporate Finance Manager introduced the Revenue Budget Monitoring 2018/19 (month 5) report which provided the latest revenue budget monitoring position for 2018/19 for the Council Fund and the Housing Revenue Account.  The report presented the position, based on actual income and expenditure, as at Month 5 of the financial year.  It projected how the budget would stand at the close of the financial year if all things remained unchanged.

            The projected year end position, without new actions to reduce cost pressures and/or improve the financial return on efficiency planning and cost control, was:

Council Fund

·         An operating deficit of £0.303m (£0.60m at Month 4); and

·         A projected contingency reserve balance as at 31^st March 2019 of £7.318m.

Housing Revenue Account

·         Net in-year revenue expenditure forecast to be £0.067m lower than budget; and

·         A projected closing balance as at 31^st March 2019 of £1.165m.

The report covered the Council Fund projected position; projected position by portfolio; out of county placements; central and corporate finance; tracking of in-year risks and emerging issues; achievement of planned in-year efficiencies; other tracked risks; independent inquiry into child sexual abuse; income; recycling income; schools – risks and impacts; other in-year issues; reserves and balances; and earmarked reserves.

On schools risks and impacts, a statement was provided, which is appended to the minutes, which set out the Council’s intention on dealing with the Teachers’ Pay Award.

In response to a question from Councillor Shotton, the Chief Officer (Governance) explained the processes relating to the independent inquiry into child sexual abuse.

RESOLVED:

(a)       That the overall report and the projected Council Fund contingency sum as at 31^st March 2019 be noted;

(b)       That the projected final level of balances on the Housing Revenue Account be noted;

(c)        That an allocation from the Contingency Reserve for the resourcing of the Independent Inquiry into Child Sexual Abuse (IICSA) be approved in principle; and

(d)       That 1% of additional funding from Welsh Government to help meet the costs of the pay award in-year for the period 1^st September 2018 to 31^st March 2019 be distributed in full to our local schools network once the funds have been received.  Schools will be required to find the remaining 1% of the award from within their own budgets for this period.  In planning the budget for 2019/20 it is the Council’s intention that it will make provision for an uplift in the base funding for schools to meet 1% of the pay award, as a minimum.  It is the Council’s aspiration to be in a position to provide an uplift for the full amount.  However, the Council is not in a position to confirm either the minimum or the aspirational provision at this point in the national budget setting process as the Council faces a potentially unmanageable gap in its budget-setting forecast for 2019/20, with such a poor provisional Local Government Settlement as outlined by Welsh Government.