Issue - meetings

That having considered the Revenue Budget Monitoring 2022/23 (month 11) report, the Committee wishes the risk around the potential waste recycling infraction charge to be raised with Cabinet.

The Strategic Finance Manager presented the 2022/23 month 11 position for the revenue budget monitoring for the Council Fund and Housing Revenue Account (HRA), prior to consideration by Cabinet.

On the Council Fund, the projected year-end position reported an operating surplus of £2.106m (excluding the impact of the pay award met by reserves).  This would leave a contingency reserve balance of £8.364m at year-end which included the in-year additional cost of £3.955m for 2022/23 pay awards to date and £2.4m of earmarked reserves transferred in from the additional revenue support 2021/22 allocation, approved in December 2022.  Significant movements from month 10 were mainly due to changes to grant funding across Social Services and the allocation from the Regional Integration Fund which impacted positively on the position with Out of County Placements.  The positive movement in Central & Corporate was due to one-off windfall income from NDR savings and a further reduction in short-term borrowing costs in the Central Loans & Investment Account, in addition to increasing income from temporary investment resulting from rising bank interest rates.  There were a number of requests to carry forward funding into the 2023/24, totalling £1.4m across portfolios, as set out in Appendix 6.

A summary of tracked in-year risks reported the current position with Council Tax collection levels and pay awards, along with other risks such as the waste recycling infraction charge on which a decision by Welsh Government was awaited.

An update on unearmarked reserves reported the current balance on the Covid-19 Emergency Reserve as £3.610m, to be utilised to meet Covid-related costs and wider demands.

On the HRA, net in-year revenue expenditure was forecast to be £2.839m higher than budget and would leave a closing un-earmarked balance of £3.635m, which was above the recommended guidelines on spend.

In response to questions from Councillor Sam Swash and the Chairman on the waste recycling infraction charge, it was explained that a demand had been issued to the Council and that negotiations were ongoing to establish the penalty imposed.  This risk would be assessed as part of year-end commitments in terms of a contingency allocation in the accounts depending on the outcome of those negotiations.

As requested previously, the Chairman asked that future reports include explanation on movements (however minor) in approved budgets to add clarity.

The recommendation, as amended to reflect the debate, was moved and seconded by Councillors Bill Crease and Rob Davies.

RESOLVED:

That having considered the Revenue Budget Monitoring 2022/23 (month 11) report, the Committee wishes the risk around the potential waste recycling infraction charge to be raised with Cabinet.