Agenda item

(a)       That having considered the Revenue Budget Monitoring 2022/23 (month 6) report, the Committee confirms that there are no specific matters to be raised with Cabinet; and

(b)       That having considered the Capital Programme Monitoring 2022/23 (month 6) report, the Committee confirms that there are no specific matters to be raised with Cabinet.

The Strategic Finance Managers (Corporate Finance) presented the 2022/23 month 6 position for the revenue budget monitoring for the Council Fund and Housing Revenue Account (HRA) and the Capital Programme, prior to consideration by Cabinet.

Revenue Budget Monitoring

On the Council Fund, the projected year-end position was an operating deficit of £0.033m leaving a year-end contingency reserve balance of £8.071m which would reduce to £2.8m after meeting the current in-year additional cost of the 2022/23 pay award.  An update was shared on the reduction in Covid-19 emergency reserves and continuing claims for Welsh Government (WG) Hardship Funding which were now subject to limited eligibility.  A summary was given of significant variances across portfolios during the period including a positive movement within Central & Corporate Finance resulting from changes to bank interest rates.  The tracking of in-year risks reported the current position on pay awards with the outcome of teachers’ award under negotiation and the impact of changes to National Insurance to be reported in Month 7.  Other tracked risks reflected continued high demand for out of county placements and support for homelessness which would be closely monitored.  All planned in-year efficiencies were expected to be achieved in 2022/23.

On the HRA, projected in-year expenditure of £3.324m higher than budget would leave a closing un-earmarked balance of £3.150m, which was above the recommended guidelines on spend.

In response to a question from the Chairman, Finance officers agreed to respond separately on the potential impact if the £1.14m outstanding debt from the Health Board on joint-funded care packages was received.

Councillor Bernie Attridge commented on continued significant underspends and overspends particularly within Social Services and asked what could be done to improve budget-setting.  He said that the Community & Housing Overview & Scrutiny Committee had been informed that the increased net pressure for void properties was likely to be resolved.

In responding, the Strategic Finance Manager referred to the impact of late grants and gave assurance of regular liaison with service managers to carry out detailed reviews of budgets.

In respect of Social Services, the Senior Manager (Safeguarding and Commissioning) explained that recruitment issues in the independent care sector impacted on pressures for the Council’s provider services.

Capital Programme

The revised programme for 2022/23 was £91.979m taking into account all carry forward sums and savings transferred back to the programme.  Changes during the period were mainly due to the introduction of grant funding streams across portfolios and budget re-profiling.  The projected outturn position totalled £87.416m leaving a £4.563m underspend recommended to be carried forward for the completion of schemes in 2023/24 as detailed.  The update also reflected two additional allocations identified to be funded from within the current ‘headroom’ provision and one-off savings to be released back into the programme.  The overall funding position of approved schemes indicated a surplus of £3.376m prior to the realisation of additional capital receipts and/or other funding sources.

The recommendations were moved by Councillor Bernie Attridge and seconded by Councillor Linda Thomas.

RESOLVED:

(a)       That having considered the Revenue Budget Monitoring 2022/23 (month 6) report, the Committee confirms that there are no specific matters to be raised with Cabinet; and

(b)       That having considered the Capital Programme Monitoring 2022/23 (month 6) report, the Committee confirms that there are no specific matters to be raised with Cabinet.