Agenda item

That having considered the Revenue Budget Monitoring 2023/24 (month 5) report, the Committee confirms that there are no specific matters to be raised with Cabinet.

The Strategic Finance Manager presented the 2023/24 month 5 position for the Council Fund and Housing Revenue Account (HRA) prior to consideration by Cabinet.

On the Council Fund, the projected year-end position was an operating deficit of £3.660m (excluding the impact of the pay award to be met from reserves) which reflected an overall in-year overspend of £6.387m at this stage.  A contingency reserve balance of £3.027m was reported for year-end (after the estimated impact of pay awards).  To assist with managing the risks and mitigating the overall projected overspend, a moratorium was being imposed through the review and challenge of non-essential spend together with the continuation of the vacancy management process.  The projected position across portfolios was summarised including details of significant variances.

An overview of risks included the estimated impact of pay awards, the latest position on the waste recycling infraction charge and continued high demand for homelessness services and out of county placements.  Based on the current position, it was projected that 99% of planned efficiencies would be achieved by year-end.  An update on earmarked reserves anticipated that remaining commitments for the Hardship Reserve would leave a year-end balance of between £3m-3.2m.  A detailed review of earmarked reserves had identified £0.648m for release to the Contingency Reserve, with the overall breakdown showing an estimated year-end balance of £14.758m.

On the HRA, net in-year revenue expenditure was forecast to be £0.006m higher than budget with a projected closing balance of £3.191m.  This took into account the proportion of the cost incurred for the fleet renewal contract.

In response to queries from Councillor Bernie Attridge, the Corporate Finance Manager advised that in addition to the ongoing review of non-essential spend, officers were currently working on the principles of the moratorium which would apply across portfolios to increase reserves and mitigate the estimated financial impact on the 2023/24 budget.  Clarification was also given on the additional cost for the fleet contract extension which had been reported to Cabinet and was held in a centralised fund by Streetscene.  The Chair commented that each portfolio should assume responsibility for its own fleet.

Councillor Attridge expressed concerns about the significant movement in the budget at this stage and said that a breakdown for each year was needed to identify the root causes, particularly in Social Services.  The frustrations were acknowledged by the Corporate Finance Manager who spoke about forecasting challenges due to volatile demand in some services.

On earmarked reserves, Councillor Alasdair Ibbotson queried the allocations for Flintshire trainees and Solar Farms.  On Organisational Change/Alternative Delivery Models, he asked whether the projected year-end increase would result in any release to general reserves and sought clarity on the expected decrease in reserves for the North Wales Residual Waste Treatment Plan.

Also on earmarked reserves, the Chair referred to some balances which remained unchanged from year to year and queried why they remained on the list when there was no depletion.

The Corporate Finance Manager provided clarity on the amount for Flintshire trainees and would seek a fuller response from the Corporate Manager for People & Organisational Development, in addition to sharing responses to the other queries.  The response to a previous request on the amount of additional revenue generated from Council Tax premiums would be shared after the meeting.

On a query from Councillor Glyn Banks regarding the fleet contract extension, the Corporate Finance Manager acknowledged that whilst the longer term pressure had been included in the Medium Term Financial Strategy for 2024/25, the part-year impact for 2023/24 had not been reflected and would be taken into consideration for future learning.

The Chair commented that the lack of financial support from Welsh Government had resulted in the homelessness pressure.  He asked that the Hardship Fund revert back to its previous name of the COVID Emergency Fund for reporting purposes.

In response to questions, officers provided clarity on the virement in Social Services in month 4 and confirmed that representations were continuing on retaining the Sustainable Waste Management Grant.  Explanation was also given on the waste recycling infraction charge which had been identified as a risk and not reflected in the budget at this stage.

The recommendation was moved and seconded by the Chair and Councillor Gina Maddison.

RESOLVED:

That having considered the Revenue Budget Monitoring 2023/24 (month 5) report, the Committee confirms that there are no specific matters to be raised with Cabinet.