Agenda item

(a)       That having considered the Revenue Budget Monitoring 2023/24 (month 4) report, the Committee confirms that there are no specific matters to be raised with Cabinet;

(b)       That a separate report being prepared by Housing & Communities be shared with the Committee at the earliest opportunity; and

(c)       That having considered the Capital Programme Monitoring 2023/24 (month 4) report, the Committee confirms that there are no specific matters to be raised with Cabinet.

The Strategic Finance Managers presented reports on the 2023/24 month 4 position for the Council Fund and Housing Revenue Account (HRA) and the Capital Programme, prior to consideration by Cabinet.

Revenue Budget Monitoring

On the Council Fund, the projected year-end position was an operating deficit of £2.644m (excluding the impact of the pay award to be met from reserves) with a contingency reserve balance of £4.043m at year-end (after the estimated impact of pay awards).  It was confirmed that Hardship Funding received from Welsh Government (WG) during 2022/23 had now ceased and the balance of £3.743m of those reserves had been carried forward.  The economic outlook remained challenging due to continuing inflationary rises and increases in service demand.  A summary was given of the projected position across portfolios and as previously requested, future budget monitoring reports would include a breakdown of movements.

An overview of risks included the latest position with the waste recycling infraction charge, growing demand for homelessness services and out of county placements, and the forthcoming renewal of the fleet contract.  Based on the current position, it was projected that 99% of planned efficiencies would be achieved by year-end.

On the HRA, net in-year revenue expenditure was forecast to be £0.065m lower than budget with a projected closing balance of £3.262m.

Councillor Alasdair Ibbotson asked about the Local Development Plan (LDP) allocation set aside in the form of a revenue budget line and earmarked reserves totalling around £0.250m.  He also requested information for the next meeting on revenue raised from the increase in Council Tax premiums on long-term empty properties and second homes for the current year relative to that of the last few years.

The Corporate Finance Manager agreed to liaise with the Revenues & Procurement Manager to provide the latter.  On the LDP query, it was clarified that the transfer of those remaining earmarked reserves from 2022/23 were included in the contingency reserves brought forward into the current year.  Members were advised that the remaining LDP revenue allocation of around £110k remained within the Planning, Environment & Economy budget for 2023/24 prompting Councillor Sam Swash to query why this amount had not been transferred into reserves to help the overall position.  The Corporate Finance Manager agreed to provide a separate response.

The Chief Executive gave assurance that work was taking place to review any unspent allocations without contractual commitments that could be placed into reserves.

Following concerns raised by Councillor Bernie Attridge at the number of movements in approved budgets at this early stage, the Chair agreed and suggested that the overspend for mental health packages be referred to Social Services for further explanation on how costs were projected.

Councillor Christine Jones commented on the pressures in Social Services and would pursue a full response from the Service Manager.

In referring to current market conditions and associated high costs, the Corporate Finance Manager spoke about the volatile and complex demands on some services.

As requested by the Chair, the Strategic Finance Manager provided clarification on the reallocation of actuarial valuations on pensions budgets and would provide an overview of the changes to approved budgets shown in Table 1.  In relation to the £0.414m underspend for residential placements in Children’s Services, a response would also be shared on the potential impact to the budget once the WG grant ceased beyond 2024/25.

On the overspend in Housing & Communities, officers advised that the report on homelessness being prepared by the service would be shared with the Committee at the earliest opportunity.

Capital Programme

The revised programme for 2023/24 was £99.084m taking into account all changes including carry forward sums.  Changes during the period were mainly due to the in-year allocation of additional WG grant funding.  The projected outturn position was £95.955m leaving a £3.129m underspend recommended to be carried forward for the completion of schemes in 2024/25.  During the quarter, there was one additional allocation identified in the programme, as detailed in the report and no savings were identified.  Capital receipts for the period totalled £0.651m giving a revised projected surplus in the Capital Programme at month 4 of £1.953m for the 2023/24-2025/26 Capital Programme, prior to the realisation of additional capital receipts and/or other funding sources.  The report also included an update on the position with prudential indicators in line with the new requirement.

Given the budget position, Councillor Bernie Attridge asked whether a moratorium should be imposed on any non-urgent capital spend not yet committed.

Officers confirmed that all aspects of Council spend were under review and considered on a case by case basis.

On the £0.055m additional allocation for hybrid meeting equipment in the Delyn Room, Councillor Alasdair Ibbotson requested a cost breakdown to consider whether this represented value for money.

The Chief Officer (Governance) provided clarity on this work and agreed to share contractually confidential information with Members as requested.

The recommendations were moved and seconded by the Chair and Councillor Bernie Attridge.

RESOLVED:

(a)       That having considered the Revenue Budget Monitoring 2023/24 (month 4) report, the Committee confirms that there are no specific matters to be raised with Cabinet;

(b)       That a separate report being prepared by Housing & Communities be shared with the Committee at the earliest opportunity; and

(c)       That having considered the Capital Programme Monitoring 2023/24 (month 4) report, the Committee confirms that there are no specific matters to be raised with Cabinet.