Agenda item

(a)       That the Revenue Budget Monitoring 2016/17 Month 4 report be approved;

(b)       That the Capital Programme Monitoring Month 4 report be approved; and

(c)       That the Committee wishes to impress upon the Cabinet the need to learn to be more realistic about the achievement of efficiency savings, some of which may not be wholly within the Council’s control.

The Finance Manager - Corporate Accounting & Systems introduced the reports on the Revenue Budget and Capital Programme Monitoring 2016/17 at Month 4, which were to be submitted to Cabinet.  These were the first monitoring reports for 2015/16 and had been produced using new software and submitted at an earlier stage.

Revenue Budget Monitoring (Month 4)

The overall year end position on the Council Fund was forecast to be £2.081M higher than the budget.  This amount would be reduced by an additional transport grant of £440K and conscious decisions on a number of proposed changes, leaving a true unpredicted working deficit of £0.780M.  Explanation was given on the withdrawal of a £250K planned efficiency target for 2016/17 which would be mitigated by increased recycling and reduced landfill over the longer term.  Delays in the completion of complex negotiations on essential car user allowances had resulted in an in-year £211K shortfall, with a positive recurring impact as the full year efficiency from 2017/18 due to exceed the target.  Attention was drawn to the risks in the report, including current and future cost pressures in residential and domiciliary care, which remained despite the achievement of additional funding to meet the in-year inflationary fee increases from within the independent sector.

Councillor Aaron Shotton welcomed the more timely information as a result of the Month 4 report being the first to be produced from the new Collaborative Planning system; this meant that the Committee was considering Month 4 as opposed to Month 3.  On efficiencies, he said that detailed negotiations on the essential care user scheme were needed to reach a satisfactory outcome.  He shared details of the timeline for the Local Government Provisional and Final Settlements and referred to the different phased approach on budget consultation this year which had received a mainly positive response from Overview & Scrutiny.  All Members had been invited to the special meeting of the Committee on 28 September with a view to taking budget proposals through Council at an earlier stage.

The Chairman tendered his apologies for the special meeting and spoke about the need for more accuracy on predicted efficiencies.  Councillor Aaron Shotton said that consideration was given to timing, for example part-year proposals such as essential car user allowances along with monitoring progress on Community Asset Transfers.

Concerns were raised by Councillor Arnold Woolley on the challenges around social care funding.  Councillor Aaron Shotton referred to the increasing ageing population and discussions with Welsh Local Government Association on social care pressures across Wales.

Councillor Paul Shotton acknowledged the potential for in-year changes and referred to the success of Community Asset Transfers.

Councillor Richard Jones expressed concerns about the scale of the efficiencies shortfall which could not continue year on year.  He wished to convey to Cabinet the importance of setting achievable efficiencies and that these should be scrutinised in detail to establish valid reasons and protect the budget, as would happen in the private sector.  In relation to cemeteries, he said that Town and Community Councils should have been consulted prior to them setting their precepts.

The Chief Officer (Organisational Change) advised that there had been some degree of slippage on Community Asset Transfers due to the detailed legal process involved.

Responding to comments on in-year changes, Councillor Aaron Shotton referred to the Council’s actions taken in response to the collapse of GHA Coaches.

Capital Programme Monitoring (Month 4)

The Finance Manager - Technical Accountancy presented a summary of changes to the Capital Programme between February and July.  Changes in 2016/17 had resulted in a revised budget of £59.131M and explanation was given on changes in relation to increased data storage and the Strategic Housing & Regeneration Programme (SHARP).  An update on capital expenditure reported a projected underspend of £15K and an early identified rollover of £67K reflecting reviewed spending plans.  An update on pressures included a new pressure of £45K in relation to improvements at the Queensferry roundabout.

Following comments from the Chairman and Councillor Richard Jones, the Finance Manager agreed that information would be provided on the technical reasons for additional spend on design changes at Queensferry roundabout.

In response to a question from Councillor Ron Hampson about the Council’s building in Ewloe, attention was drawn to the in-year receipts in Table 6 of the report.  The Chief Officer (Organisational Change) reported that the building was being marketed for disposal and that details of all operational costs under the Council’s control would be provided, in response to the Chairman’s request.

Councillor Aaron Shotton reminded Members of the positive outcome of negotiations on household recycling centres involving the Cabinet Member for Waste Strategy and officers with Welsh Government colleagues.

RESOLVED:

(a)       That the Revenue Budget Monitoring 2016/17 Month 4 report be approved;

(b)       That the Capital Programme Monitoring Month 4 report be approved; and

(c)       That the Committee wishes to impress upon the Cabinet the need to learn to be more realistic about the achievement of efficiency savings, some of which may not be wholly within the Council’s control.