Agenda item

(a)       That having considered the Revenue Budget Monitoring 2021/22 (Month 4) report, the Committee confirms that there are no specific issues to be raised with Cabinet; and

(b)       That having considered the Capital Programme Monitoring 2021/22 (Month 4) report, the Committee confirms that there are no specific issues to be raised with Cabinet.

The Strategic Finance Manager and Finance Manager presented their reports on the 2021/22 Month 4 position for Revenue Budget Monitoring and Capital Programme Monitoring prior to consideration by Cabinet.

Revenue Budget Monitoring

The report took into account the latest position on claims made to the Welsh Government (WG) Hardship fund which had proved critical throughout the emergency period.

On the Council Fund, the projected year-end position - without new actions to reduce cost pressures and/or improve the financial return on efficiency planning and cost control - was an operating deficit of £0.739m (excluding the impact of the pay award to be met from reserves).  This position would leave a contingency reserve balance of £5.057m at year-end.  The reasons for this projected position were set out in the report and included significant variances in Children’s Services, Out of County Placements and Streetscene & Transportation.

An update was given on the key financial risks (including an improved position on Council Tax collection rates), achievement of planned in-year efficiencies, and the position on reserves and balances as detailed in the report.  On un-earmarked reserves, it was reported that £2.1m of Covid-19 emergency funding currently remained following the allocation of £0.900m for ineligible Covid-19 related grant claims.  Information was currently awaited on WG Social Care Recovery Funding which could offset some of the existing cost pressures within that portfolio.  An update would be provided in the report for Month 5.

On the Housing Revenue Account (HRA), a projected overspend of £0.495m would leave a closing un-earmarked balance of £3.978m, which was above the recommended guidelines on spend.

In response to questions from Councillor Haydn Bateman, officers provided clarification on Income Loss funding criteria for car park charges.

Councillor Geoff Collett requested a further breakdown of the £1.008m overspend in Children’s Services and an understanding on whether those pressures were expected to continue.  The Finance Manager agreed to liaise with colleagues in Social Care to provide a response to the Committee.

The recommendation was moved and seconded by Councillors Geoff Collett and Haydn Bateman.

Capital Programme

The revised programme for 2021/22 was £77.136m taking into account all carry forward sums, changes during the period and savings transferred back to the programme.  Changes during the last quarter were mainly due to the introduction of grant funding streams across portfolios.

The projected outturn position was £72.837m resulting in an underspend of £4.299m on the Council Fund which was recommended to be carried forward for the completion of schemes in 2022/23.  Additional allocations and savings identified in this quarter were also summarised along with the overall projected surplus funding position of £2.795m for the three year programme prior to the realisation of additional capital receipts or funding sources identified during the year.

The recommendation was moved and seconded by Councillors Haydn Bateman and Andy Williams.

RESOLVED:

(a)       That having considered the Revenue Budget Monitoring 2021/22 (Month 4) report, the Committee confirms that there are no specific issues to be raised with Cabinet; and

(b)       That having considered the Capital Programme Monitoring 2021/22 (Month 4) report, the Committee confirms that there are no specific issues to be raised with Cabinet.