Agenda item

(a)       That having considered the Revenue Budget Monitoring 2020/21 Month 6 report, the Committee confirms that there are no specific matters to be reported to Cabinet; and

(b)       That having considered the Capital Programme 2020/21 Month 6 report, the Committee confirms that there are no specific matters to be reported to Cabinet.

The Corporate Finance Manager and Strategic Finance Manager presented a report on the revenue budget monitoring position for the Council Fund and Housing Revenue Account (HRA) at Month 6, together with the month 6 position on the Capital Programme of 2020/21 prior to consideration by Cabinet.

Revenue Budget Monitoring

The report reflected the budget position at the close of the financial year if all things remained unchanged and took into account the latest position on Welsh Government (WG) Emergency Grant funding announcements.

On the Council Fund, the projected year-end position - without new actions to reduce cost pressures and improve the yield on efficiency planning - was an operating deficit of £0.569m.  This projection included savings achieved through the continued review of non-essential spend but excluded the impact of significant open risks on Council Tax income and Council Tax Reduction Scheme, together with the pay award which would be met by reserves.  The reasons for the favourable movement of £0.352m from Month 5 were set out in the report, including significant variances for Social Services, Education & Youth, Governance and Strategic Programmes.

The Strategic Finance Manager provided full details of the key financial risks and new emerging risks, together with the position on emergency funding, achievement of planned in-year efficiencies, reserves and balances as set out in the report.

On the HRA, a projected underspend of £0.478m would leave a closing un-earmarked balance of £2.487m, which was above the recommended guidelines on spend.

In thanking the Finance team for their work, Councillor Banks welcomed the additional £0.200m from WG to part-fund the teachers’ pay award.

Councillor Thomas highlighted increasing transportation costs as an area of concern.

The Chief Executive said that despite the national emergency, the Council was in a strong position at this stage and that grant funding claims had been maximised.  There were a number of significant risks yet to be resolved with WG and the year-end outturn would impact on the starting point for the 2021/22 budget.

On the Council Tax Reduction Scheme, the Corporate Finance Manager advised that following WG funding for the first quarter, a positive announcement was expected on funding to be allocated for the second quarter.

The recommendation was moved and seconded by Councillors Dunbobbin and Williams.

Capital Programme

Changes to the revised programme during the period were mainly due to the introduction of grant funding streams for Highways Maintenance, Childcare Offer and Flying Start, with no impact on the core funding for the Council.  The summary position on capital expenditure at Month 6 showed a projected underspend of £1.369m on the Council Fund to be carried forward into 2021/22.  A one-off saving of £0.027m was identified for work carried out on the All-Terrain Pitch at Elfed High School which was lower than budgeted.

Following approval of the 2020/21 - 2022/23 Capital Programme earlier in the year with a funding deficit of £2.264m, the impact of capital receipts and savings achieved had resulted in a revised projected surplus of £0.403m.

Councillor Thomas gave examples of maximising grant funding for highways and transportation to address related issues.

Councillor Banks commended the mix of projects within the Capital Programme and drew attention to the Mockingbird model.

The recommendation was moved and seconded by Councillors Woolley and Dunbobbin.

RESOLVED:

(a)       That having considered the Revenue Budget Monitoring 2020/21 Month 6 report, the Committee confirms that there are no specific matters to be reported to Cabinet; and

(b)       That having considered the Capital Programme 2020/21 Month 6 report, the Committee confirms that there are no specific matters to be reported to Cabinet.