Agenda item

(a)       That having reviewed the cost pressures and options to reduce budgets in Governance, the Committee comments as follows:

 

·         That the Governance & Audit Committee be consulted on the removal of the vacant post in Internal Audit;

·         That officers review the pressures for the Schools’ IT Technician and Cyber Security Technician to explore the feasibility of (i) uplifting one salary in line with the other to increase resilience by the two posts supporting each other; and (ii) combining the two posts to generate a £32K saving.

 

(b)       That having reviewed the cost pressures and options to reduce budgets in Corporate Services, the Committee comments as follows:

 

·         That the Chief Executive and Chief Officer (Governance) liaise with the Chair and Leader of the Council to send a letter on behalf of the Council to the Welsh Government, Home Office and Audit Wales to request the power of precept for the North Wales Fire & Rescue Authority in Flintshire.

 

(c)       That having reviewed the cost pressures and options to reduce budgets in Assets, the Committee comments as follows:

 

·         That the Committee does not support withdrawal of the Stonewall membership but accepts that this is included on the list of possible options if required.

The Chief Executive and Corporate Finance Manager presented an update on the additional budget requirement for 2024/25.  The Committee was asked to review the budget pressures and cost reduction options within Governance, Corporate Services and Assets, as detailed in the presentation which covered:

 

·         Purpose and Background

·         Additional Budget Requirement for the Council 2024/25

·         Ongoing Risks

·         Overall position after initial solutions

·         Cost Pressures and Budget Reductions

·         Next Steps for Budget-setting 2024/25

 

The minimum budget requirement of an additional £32.386m of revenue resources for 2024/25 took into account a number of ongoing risks including public sector pay, high demand for some services and inflationary pressures which were being monitored.  Taking account of initial solutions would leave a remaining budget gap of £14.042m which presented a major challenge for the Council if there was no movement in the indicative 3.1% uplift in the settlement from Welsh Government (WG).  The presentation highlighted the need for a strategic programme of transformational change to ensure that the Council was developing cost reductions over the medium term to protect its ongoing future financial position and to prepare for inevitable future budget challenges.

 

Overview & Scrutiny committees were being asked to rigorously review their portfolio cost pressures, efficiency options and associated risks, and to identify any additional areas of cost efficiency.  A summary of outcomes from those sessions would be reported back to this Committee at the November meeting which would be open to all Members.  Following receipt of the provisional settlement on 20 December, Overview & Scrutiny meetings in January would need to consider further budget reductions required to meet the remaining budget gap in order for the Council to meet its statutory obligation of setting a legal and balanced budget in February 2024.

 

Governance

 

Councillor Bernie Attridge raised concerns about the impact of the proposed removal of a vacant post in Internal Audit.  The Chief Officer (Governance) explained that the Internal Audit Manager had offered this long-term vacancy as an efficiency following changes within the team structure and that she would fulfil her duty in giving an annual audit opinion based on the level of resources available.

 

On shared services, the IT Infrastructure Services Manager gave examples of the Council’s participation in a national forum as well as other collaborative work on cyber security.  He said that the Cyber Technician pressure was to support a post that was funded for 2023/24 and advised against a shared post due to the heightened risk around cyber threats in the UK.

 

Councillor Alasdair Ibbotson asked whether the Governance & Audit Committee had been consulted on the removal of the Internal Audit post and questioned the potential liability of losing the post.

 

The Chief Officer anticipated no impact on fraud and error cases from the removal of the post as fraud prevention was the responsibility of individual services.  When questioned, he said that this represented a green risk in the resilience of the service as it could reduce capacity for any unplanned work and potentially impact on planned work.  Councillor Ibbotson requested that this option be referred to the Governance & Audit Committee for consideration.

 

On other queries, clarification was given that the staffing underspend in Flintshire Connects was not due to recruitment and retention issues. The saving was due to the difference between the current allocated budget and the amount of money required to fund the approved staffing structure.  It was also clarified that the IT cost pressures were either to upgrade existing technology or provide additional solutions and that there were no plans to discontinue licenses for software with a recurring license fee.

 

Councillor David Coggins Cogan asked whether the cost pressure for the Schools’ IT Technician could be aligned with that of the Cyber Security Technician to enable the two posts to work in conjunction with each other to increase resilience on cyber security.

 

In clarifying the differences between the two roles, the IT Infrastructure Services Manager agreed to consider the cost implications from this suggestion.  He also agreed to consider the Chair’s suggestion to combine the two posts into one to generate a £32K saving, however he said it was unlikely that the level of work could be undertaken by one individual.

 

The Chair commented on the need for WG to provide financial assistance to all councils to ensure a consistent approach on tackling cyber security.  In response, it was explained that WG currently funded the security operation centre which was a centralised resource for authorities in Wales.

 

Corporate Services

 

In response to a question from Councillor Linda Thew, it was explained that contributions to the Coroner’s Service and North Wales Fire & Rescue Authority (NWFRA) were based on the population per county.

 

On Theatr Clwyd, Councillor Attridge asked about the implications of previous decisions taken by the Council following the reduction in funding from the Arts Council.  The Chief Executive advised that the Council’s commitments were clearly set out in the current agreement which continued until 2026.

 

On another question, the Corporate Finance Manager confirmed that the £365K cost pressure for Alternative Delivery Models (ADMs) and Community Asset Transfers (CATs) reflected the projected inflationary uplift from the current contributions to Aura Leisure, Newydd Catering & Cleaning, Holywell Leisure Centre, Cambrian Aquatics and Theatr Clwyd.  As requested by Councillor Attridge, a breakdown of that amount would be provided to Members.  The Chief Executive also said that an update report on CATs would also be shared with the Committee, as previously requested.

 

Councillor Sam Swash was given clarification on the two schemes coming forward under the 21^st Century Schools programme for 2024/25.  On the inflationary cost pressure for Corporate Joint Committees (CJCs), he questioned the benefits to the Council on which the Chair shared his personal view that no additional contributions should be made.

 

The Chief Executive reported that key details were awaited on the two main workstreams on regional planning and transportation which were being progressed in the CJC.

 

Councillor Ibbotson raised questions on cost pressures relating to ADM/CATs and commented on the in-year increase in earmarked reserves projected for year-end.  It was confirmed that NEW Homes was not included as it was a wholly owned subsidiary of the Council and that contributions from the Council to ADM/CATs would be reviewed and challenged as part of the budget-setting process.

 

On other questions, officers advised that the cost pressure for the Joint Archive Service was a contribution towards the design and development phase, with construction likely to take place in 2025/26 and 2026/27.  As advised during the presentation, the cost pressure for the match funding element of the unsuccessful Levelling Up Fund bid would be removed and reflected as a saving in future budget updates.  Clarification was also given on the MIM project at Mynydd Isa within the 21^st Century Schools programme, with the Penyffordd CP School extension funded from the core Capital Programme.

 

Councillor Ibbotson commented on the lack of progress on the CJC given the level of funding and resources allocated, and questioned whether contributions could align with the funding formula as opposed to population.  His concerns were shared by the Chair who suggested a future update report.  The Chief Executive spoke about the requirements set by the legal framework but would raise the issue of the funding model at the next meeting of the CJC.

 

In response to a question from Councillor Coggins Cogan on value for money on the CJC, the Chief Executive referred to his comments on the two main workstreams and said that negotiations had taken place to mitigate further increases to contributions.

 

Councillor Glyn Banks questioned whether the Council could seek an exemption from the Apprentice Tax levy, as a non-profit making organisation.  On Theatr Clwyd, he expressed concerns about the impact on the Council arising from the shortfall in funding from the Arts Council.  The Chair suggested that officers give this consideration and bring an update back to the Committee.

 

Whilst speaking about the challenges in determining funding for collaborative working, Councillor Ian Roberts gave assurance of the Council’s role in those partnerships and continued representations.  He spoke in support of the growing consensus that the NWFRA should become a precepting authority on this Council (along with North Wales Police), suggesting that the Committee may wish to consider sending a letter to WG and the Home Office to this effect.

 

The Chief Officer (Governance) said that with the agreement of the Committee, the letter could also be sent to Audit Wales in advance of its review of Fire Authority governance arrangements.

 

Assets

 

In response to a question from Councillor Ibbotson about the withdrawal of options on the Strategy Office restructure, the Chief Executive explained that the social value and community benefits achieved by retaining those posts offset the efficiency saving.

 

As requested, further details of the £10K saving arising from the merging of functions in Valuation & Estates would be shared, along with a confidential breakdown of the £28K saving from third sector funding, including the organisations involved.

 

Councillor Coggins Cogan shared concerns about the option for the Council to withdraw the Stonewall subscription as this was important to retain and represented a small amount.  He was supported by Councillor Roberts who said that this should be held in a list of ‘possible’ options to which the Chair also agreed.

 

The recommendations, as amended, were moved and seconded by the Chair and Councillor Arnold Woolley.

 

RESOLVED:

 

(a)       That having reviewed the cost pressures and options to reduce budgets in Governance, the Committee comments as follows:

 

·         That the Governance & Audit Committee be consulted on the removal of the vacant post in Internal Audit;

·         That officers review the pressures for the Schools’ IT Technician and Cyber Security Technician to explore the feasibility of (i) uplifting one salary in line with the other to increase resilience by the two posts supporting each other; and (ii) combining the two posts to generate a £32K saving.

 

(b)       That having reviewed the cost pressures and options to reduce budgets in Corporate Services, the Committee comments as follows:

 

·         That the Chief Executive and Chief Officer (Governance) liaise with the Chair and Leader of the Council to send a letter on behalf of the Council to the Welsh Government, Home Office and Audit Wales to request the power of precept for the North Wales Fire & Rescue Authority in Flintshire.

 

(c)       That having reviewed the cost pressures and options to reduce budgets in Assets, the Committee comments as follows:

 

·         That the Committee does not support withdrawal of the Stonewall membership but accepts that this is included on the list of possible options if required.