Agenda item

Revenue Budget Monitoring 2018/19 (Interim)


The Committee noted the position and confirmed that there were no issues which it wanted to have reported verbally to Cabinet.




The Corporate Finance Manager introduced a report  to provide known key risks and issues to the revenue budget outturn position for 2018/19 for the Council Fund and Housing Revenue Account.  He explained that the interim report was the first revenue budget monitoring report of 2018/19 and provided information on the progress of achieving planned efficiencies against targets set and reported by exception on significant variances which may impact on the financial position in 2018/19.


The Corporate Finance Manager advised that although at an early stage in the financial year, the initial net impact of the emerging risks and variances as detailed in the report, was that expenditure was projected to be £1.619m lower than budget.  However, he went on to say that it was important to note that without the temporary budgetary benefits of the Minimum Revenue Provision (£1.4m) and the vat refund (£1.9m) there were net risks of £1.7m for the Council to manage. The first detailed monitoring of all risks and variances would be reported to Cabinet on 25 September 2018.


The Corporate Finance Manager reported on the main considerations, concerning pay negotiations for National and Council (NJC) staff, Out of County placements overspend, mental health services – residential placements overspend, the Minority Ethnic Achievement Grant (MEAG), the Minimum Revenue Provision underspend, and VAT rebate underspend.


Councillor Richard Jones reiterated the comments he had made at previous meetings about the need for a central Wales pool of Out of County funding for Welsh councils. The Chief Executive commented that it had been recognised across the UK that some care providers were charging unsustainable high-cost rates for some specialist care.  Councillor Jones suggested that a letter be sent to the WG to outline the need for additional funding to assist local authorities and it was agreed that this would be given further consideration following the second budget workshop to be held on 23 July.


In response to a concern by Councillor Haydn Bateman around income from recycling waste, the Chief Executive explained that the income from plastic, paper, and card recycling had dropped significantly due to international market changes.  He commented that the potential for  income from recycling of clothes was an area which could be given more consideration.


Councillor Patrick Heesom expressed concerns on the financial risks associated with schools.  He commented on the number of secondary schools in Flintshire which were in a deficit position and the further potential impact of the teacher’s pay award which was to be agreed nationally.  The Chief Executive referred to the measures taken by the Authority to improve school funding and said further work was being undertaken by Cabinet to give assistance to school budgets where possible in the future as part of the Medium Term Financial Strategy.   The Chief Executive commented that the financial risks could only be resolved though national not local funding.




The Committee noted the position and confirmed that there were no issues which it wanted to have reported verbally to Cabinet.


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