Agenda item

(a)       That having considered the Revenue Budget Monitoring 2021/22 (Month 6) report, the Committee confirms that there are no specific matters to be raised with Cabinet; and

(b)       That having considered the Capital Programme Monitoring 2021/22 (Month 6) report, the Committee confirms that there are no specific matters to be raised with Cabinet.

The Strategic Finance Managers presented reports on the revenue budget monitoring position for the Council Fund and Housing Revenue Account (HRA) at month 6, together with the month 6 position on the Capital Programme of 2021/22 prior to consideration by Cabinet.

Revenue Budget Monitoring

On the Council Fund, the projected year-end position - without new actions to reduce cost pressures and improve the yield on efficiencies - was an operating surplus of £0.227m (excluding the impact of the pay award to be met from reserves) which reflected a favourable movement of £0.045m from month 5.  This would leave a year-end contingency reserve balance of £6.322m which included previously agreed allocations from earmarked reserves.  An update on in-year risks included Council Tax collection levels, the Council Tax Reduction Scheme and the latest position on pay awards.  Following the announcement by Welsh Government (WG) of additional Social Care and Health grant funding across Wales, the Council’s increased allocation from £1.7m to £2.8m through the Social Care Recovery Fund would be reflected in future reports.  Information was given on the claims process for emergency funding and officers were currently assessing the impact of changes to guidance on the Hardship Fund.

On the HRA, a projected overspend of £0.755m would leave a closing un-earmarked balance of £3.717m, which was above the recommended guidelines on spend.

Councillor Richard Jones acknowledged the amount of work done across the Council to improve the projected year-end position since month 4.  On the overspend for Out of County Placements, he welcomed the contribution from the Social Care Recovery Fund and asked about other options to mitigate this continued risk.  The Corporate Finance Manager said that the increased allocation of Social Care and Health grant funding would be assessed to identify best use.

The Chief Executive said that the Capital Programme sought to provide capacity within the County to help reduce Out of County Placement costs.

In respect of assessing the impact of changes to Hardship Fund criteria, officers were working with portfolios to identify mitigation measures where possible in advance of the Hardship Fund ceasing at year-end.  The current main risk was supply cover for employees affected by Covid and this grant funding would continue until the end of December when it would be reviewed.  Any ineligible claims that could not be mitigated would need to be funded by the remainder of the amount set aside for Covid-19 emergency funding.

In response to a question from the Chairman, the Chief Officer (Governance) provided information on changes in the profile of Council Tax payments.

The recommendation was moved and seconded by Councillors Richard Jones and Arnold Woolley.

Capital Programme

The summary position at month 6 showed a revised budget of £74.962m taking into account agreed carry-forward amounts, changes during the period and savings transferred back in.  Changes were mainly due to the introduction of grant funding and previously approved borrowing to match expenditure of schemes in-year.  Capital expenditure compared to budget indicated a projected underspend of £0.939m on the Council Fund which would be recommended for carry forward to complete schemes in 2022/23.  An update was given on the funding of additional schemes in the Programme and savings identified during the quarter.  The overall funding position at month 6 indicated a revised projected surplus in the Capital Programme of £4.147m which was an increase from month 4.

The recommendation was moved and seconded by Councillors Haydn Bateman and Richard Jones.

RESOLVED:

(a)       That having considered the Revenue Budget Monitoring 2021/22 (Month 6) report, the Committee confirms that there are no specific matters to be raised with Cabinet; and

(b)       That having considered the Capital Programme Monitoring 2021/22 (Month 6) report, the Committee confirms that there are no specific matters to be raised with Cabinet.