Decision details

That the Committee reviews and comments on the cost pressures and overall budget strategy, and advises on any areas of cost efficiency it would like to see explored further.

The Corporate Finance Manager introduced a report on the latest position for the Council Fund Revenue Budget 2023/24 following receipt of the Welsh Local Government Provisional Settlement (LGPS) and formal budget setting process.

Stage 1 of the budget process had established a robust baseline of cost pressures across portfolios which were shared at Member briefing sessions.  As part of Stage 2, Overview & Scrutiny Committees were now being invited to rigorously review cost pressures contributing to the additional budget requirement in their respective portfolios together with options for portfolio cost reductions.  Members were reminded that the latest position reported to Cabinet in November advised that remaining risks could potentially increase the additional budget requirement to around £32m.  Given the scale of the potential budget gap, all services had been tasked with identifying options to manage their services with a reduced budget.  As well as having oversight of budget reduction options for all portfolios, the Committee was invited to review solutions within Corporate Services and Assets and to identify any further areas of cost efficiency to be explored.

The Corporate Finance Manager advised that the indicative settlement for Flintshire was an increase of circa £19.5m (8.4%) which, although above the national average, was only likely to meet around 50% of the Council’s cost pressures.  The implications and the remaining risk areas were being reviewed to provide a verbal update to Cabinet on 20 December prior to formal reporting in January.  An updated position will be reported to Corporate Resources Overview & Scrutiny Committee on 12 January alongside feedback from all Overview & Scrutiny sessions and would be open to all Members.  Final budget proposals including the setting of council tax would follow in February.

The Chief Executive, Chief Officer (Governance), Corporate Finance Manager, Corporate Manager (People and Organisational Development) and Corporate Manager (Capital Programme and Assets) gave a detailed presentation covering the cost pressures within Corporate Services and Assets as follows:

·         Purpose and Background

·         Reminder of the Council’s Budget Position

·         Corporate Cost Pressures / Budget Reductions / Past Efficiencies:

o   Governance

o   People and Resources

o   Assets

o   Chief Executive

o   Central and Corporate

·         Next Steps

Following the presentation, officers and Cabinet Members responded to questions and comments raised by the Committee.  As requested by Councillor Alasdair Ibbotson, the Corporate Manager (Capital Programme and Assets) agreed to provide the Committee with further information on agricultural assets which had contributed towards the cost pressure.

Councillor Dave Hughes expressed his thanks to the Leader of the Council and the Chief Executive for their efforts in respect of the positive indicative settlement and suggested that the Committee may wish to do so formally, along with the Welsh Government (WG) Finance and Local Government Minister.  He thanked the Corporate Finance Manager and his team for their valuable work.

Councillor Ian Roberts said that the outcome on the settlement was attributable to the efforts of all officers and Members across the Council.  He gave assurance that work would continue with the Welsh Local Government Association to request a review of the funding formula.

The Chairman commented on the impact of consequential funding passported through from the UK Government to WG.  He welcomed the improved settlement on which the Committee had made written representations and referred to the current consultation period.

It was clarified by the Corporate Finance Manager that despite the positive settlement, Flintshire’s funding allocation per capita remained ranked 20^th out of the 22 Welsh authorities.

Whilst the Chief Executive welcomed the provisional settlement, he reminded Members of the 2.4% indicative settlement figure for 2024/25 (as part of a three year settlement, this being year three).

The recommendations, which reflected the debate, were moved and seconded by Councillors Bill Crease and Chris Dolphin.

RESOLVED:

(a)       That having reviewed the Corporate Services and Assets cost pressures, comments on ICT Cyber Security be reported to Cabinet;

(b)       That having reviewed the Corporate Services and Assets options to reduce budgets, comments on Connects Centres be reported to Cabinet; and

(c)       That there are no areas of cost efficiency to be explored further.