Agenda item

That having considered the Revenue Budget Monitoring 2020/21 Month 7 report, the Committee confirms that there are no issues to be raised with the Cabinet on this occasion.

The Corporate Finance Manager gave a presentation on the Council’s success in making claims to Welsh Government (WG) for Emergency Grant funding and how these claims were reconciled against the £3m emergency reserve that was set aside at the start of the emergency situation.  The presentation covered:

·         National Funding Announcements

·         Hardship Fund claims

·         Income Loss claims

·         Approved Contingency Reserve £3m

The presentation recognised the success of joint working between Local Government and WG from the start of the emergency situation.  It was noted that the approved Contingency Reserve balance would be £2.616m if all holding claims were approved by WG in January.  The lost income elements awaiting approval had been factored into budget monitoring projections and would result in a positive movement if approved by WG.  The presentation slides would be circulated to the Committee following the meeting.

The Strategic Finance Manager presented the report on the revenue budget monitoring position for the Council Fund and Housing Revenue Account (HRA) as at Month 7 prior to consideration by Cabinet.  This reflected the budget position at the close of the financial year if all things remained unchanged and took into account the latest position on WG Emergency Grant Funding announcements.

The operating deficit of £0.196m was a positive movement of £0.373m from the previous month and would leave a projected Contingency Reserve balance of £1.415m.  The review of non-essential spend had helped to reduce the overall position by £0.700m to date by delaying spend and holding vacancies.

Amongst the significant variances were £0.345m of additional costs for Out of County Placements, and an improved position of £0.148m for Streetscene & Transportation and £0.270m for Governance, as set out in the report.  Emerging risks such as the increase in demand for free school meals were being closely monitored.

It was projected that 96% of efficiencies would be achieved by year-end.

The projected £1.415m year-end balance of Contingency Reserves assumed that the projected overspend of £0.196m was met from the amount available in the £3m emergency ring-fenced fund, which would leave a remaining amount of £2.446m.

On the HRA, a projected underspend of £0.460m would leave a closing un-earmarked balance of £2.469m, which was above the recommended guidelines on spend.

Councillor Banks thanked officers for the report and their successes in obtaining grant funding.

Councillor Heesom thanked officers for the improved presentation of variances.  In response to questions, the Chief Executive reported a positive outcome on negotiations with WG on the reimbursement of car parking income losses during Quarter 2.  He also spoke about the challenges in reinstating markets during the emergency situation due to safety concerns.

Councillor Jones asked for explanation on the reduction in the approved budget for Central & Corporate Finance to which officers would provide a separate response.  He called for the continued suspension of car parking charges to assist town centres.  In response to questions, the Corporate Finance Manager provided clarification on the impact of the teachers’ pay award.  On the Council Tax Reduction Scheme (CTRS) it was hoped that WG would continue to provide financial support for the remaining two quarters.

Councillor Thomas spoke about her concerns about rising costs for transportation which would continue to be monitored.

Following a suggestion by the Chief Executive, it was agreed that the Committee would receive a report in January on the open risks from the emergency period and reconciliation of Emergency Grant funding, together with analysis of longer term risks in the risk register.

The recommendation was moved and seconded by Councillors Shotton and Jones.

RESOLVED:

That having considered the Revenue Budget Monitoring 2020/21 Month 7 report, the Committee confirms that there are no issues to be raised with the Cabinet on this occasion.