Issue - meetings

i.          The procedure and timetable to draw up the 2022/2023 Budget was approved.

ii.           If there was a funding gap in balancing the 2022/23 budget, it was noted that the Council would use contingency budgets and reserves to mitigate resource losses in the short-term, and carefully identify any additional savings required during the summer of 2022.

iii.          The contents of the report were accepted as the Council's Medium Term Financial Plan, whilst noting that, in the current context, financial planning was extremely challenging.

The report was submitted by Cllr Ioan Thomas

DECISION

                  i.         The procedure and timetable to draw up the 2022/2023 Budget was approved.

                 ii.        If there was a funding gap in balancing the 2022/23 budget, it was noted that the Council would use contingency budgets and reserves to mitigate resource losses in the short-term, and carefully identify any additional savings required during the summer of 2022.

                iii.        The contents of the report were accepted as the Council's Medium-Term Financial Plan, whilst noting that, in the current context, financial planning was extremely challenging.

DISCUSSION

The report was submitted and it was highlighted that the Council had been prudent over the years and this had placed it in a better position than many other authorities. It was explained that the report gave an outline of the annual report to draw up a budget, as well as a Medium-Term Financial Plan. 

It was expressed that there would be many bids for additional resources this year as a result of different pressures on departments and the bids process would be submitted to the Cabinet members. Members were reminded that the Council's main financial source was the Welsh Government Grant and that they would present their draft settlement in December, before presenting the settlement at the beginning of March. It was explained that the timetable was very challenging and that there was financial uncertainty as a result of the pandemic.

The Head of Department guided members through the report, noting that the accountants had started to prepare the estimate expenditure of the departments for 2022/23. It was emphasised that bids would be submitted to the Cabinet over the coming months in order to address the additional pressures on departments.

It was noted that the timetable was very challenging in a period when Covid continued, but that the Council's robust financial situation and healthy reserves meant that more risk could be taken. Attention was drawn to the challenges facing the Council, which included Covid recovery, an increase in salaries, as well as an increase in inflation. It was explained that the settlement had included inflation last year, but this had not been guaranteed yet for this year.

Attention was drawn to the projections that had been created which highlighted three potential scenarios. It was emphasised that it was difficult to foresee the future, but that it may be possible that there would be a need to plan for savings in the future. It was stated that if there was a financial gap next year, the Council could bridge the gap in 2022/23.