Issue - meetings

That having considered the MTFS and Budget 2024/25 report, the concerns raised by the Committee be forwarded to Cabinet on 19 December 2023.

The Corporate Finance Manager presented an update on the additional budget requirement for 2024/25 and progress with potential budget solutions, prior to consideration by Cabinet.

Since the November meeting, the Chancellor’s Autumn Statement had been announced with key components relating to reductions in taxation affecting individuals and businesses, which meant there was unlikely to be any additional consequential funding for Local Government to improve the Provisional Settlement due from Welsh Government (WG) on 20 December.

A summary of changes to pressures since September had resulted in a revised additional budget requirement of £33.187m.  Funding solutions identified to date totalled £22.097m which left a remaining additional budget requirement of £11.090m to set a legal and balanced budget for 2024/25.  The report reflected a number of ongoing risks being closely monitored and other budget options still under consideration.  Further cost reductions were being urgently considered to meet the scale of the remaining shortfall.  The national picture showed that all local authorities in Wales were facing significant financial challenges of a similar scale.  Members would be briefed on the outcome of the Provisional Settlement prior to the Christmas break.

The Chair raised concerns about the scale of further budget reductions that portfolios were being asked to identify and said that the anticipated position and potential solutions should have been made clearer at an earlier stage, particularly given the level of challenge at previous meetings.  He went on to comment on the political leadership and questioned whether representations had been made to WG on pressures arising from continuing high demand for Additional Learning Needs and homelessness services.

In response to queries, the Corporate Finance Manager provided explanation on reduced efficiencies from the assets portfolio and said that the likely reduction in funding arising from the increase in WG Aggregate External Finance was based on initial information from the Distribution Sub Group and was subject to ongoing discussion.  Clarification was also given on Council Tax modelling and the prudent approach of the year 2 saving from the Actuarial Review.  On risks, it was explained that confirmation was awaited from WG on funding for the pressure around employer teacher pension contributions.

The Chief Executive advised that the strategic programme of transformation would create a sustainable budget position moving forward with workstreams focussing on protecting the Council’s financial position, particularly given the levels of available reserves.

Councillor Paul Johnson provided context on Flintshire’s financial position compared with other authorities and gave assurance that representations to WG were continuing.  He went on to speak about taking a measured approach taken on the budget process to work through the data available.

On the potential harmonisation of fostering fees, Councillor Alasdair Ibbotson asked whether the Council’s fees were lower than the proposed level and the Welsh average and if so, whether this impacted on Out of County pressures.  The Corporate Finance Manager agreed to obtain a response from the service.  In reply to further queries, he provided clarification on Council Tax calculations and Alternative Delivery Model inflationary pressures.  He also  ...  view the full minutes text for item 53