Issue - meetings

1.1 To approve additional financial support above the contractual payment projected to be £219k to Cwmni Byw'n Iach to be funded from the transformation fund, delegating the right to the Cabinet Member for Economy in consultation with the Cabinet Member for Finance, the Chief Executive and the Head of Finance to agree on the amount of the final financial support above the contractual payment to Byw'n Iach at the end of the financial year.

1.2 To ask the Head of Finance and Head of Environment to submit a further report on the possible options for funding the costs of making safe/demolishing the Corbett Arms building in Tywyn.

1.3 To approve the transfer of £3.757 million of underspend on corporate budgets to the Council's Financial Strategy Reserve, with its use to be considered before the end of the current financial year.

1.4 To approve the financial virements as outlined in Appendix 3 following a review of the funds, removing £576k worth of negative balances from the funds of the Adults, Health and Well-being Department (£300k) and the Children and Supporting Families Department (£276k), following the departments' overspending for three consecutive years.

The report was submitted by Cllr Huw Wyn Jones

DECISION

1.1 To approve additional financial support above the contractual payment projected to be £219k to Cwmni Byw'n Iach to be funded from the transformation fund, delegating the right to the Cabinet Member for Economy in consultation with the Cabinet Member for Finance, the Chief Executive and the Head of Finance to agree on the amount of the final financial support above the contractual payment to Byw'n Iach at the end of the financial year. 

1.2 To ask the Head of Finance and Head of Environment to submit a further report on the possible options for funding the costs of making safe/demolishing the Corbett Arms building in Tywyn. 

1.3 To approve the transfer of £3.757 million of underspend on corporate budgets to the Council's Financial Strategy Reserve, with its use to be considered before the end of the current financial year.  

1.4 To approve the financial virements as outlined in Appendix 3 following a review of the funds, removing £576k worth of negative balances from the funds of the Adults, Health and Well-being Department (£300k) and the Children and Supporting Families Department (£276k), following the departments' overspending for three consecutive years.

DISCUSSION

It was stated that this report detailed the latest review of the Council's revenue budget for the 2025/26 period, and the outlook towards the end of the financial year.

It was then noted that the Council's departments had forecast an overspend of £6.3 million following the end of August review, of which 75% were in the field of care, adults and children. It was added that there was also significant overspending in the fields of waste, highway and municipal. It was confirmed that there was underspending on corporate budgets, which reduced the overspend forecast as a whole to £2.5 million.

The Cabinet was guided through Appendix 2, highlighting the budget deficit facing a number of Council departments.   

Observations arising from the discussion:

·       It was noted that this was a situation that is seen annually, which was an increase in demand but a decrease in the budget. It was added that underfunding was the problem, not overspending. 

·       Attention was drawn to the national picture and the fact that Councils across Wales were overspending in the same fields. It was noted that the overspending was likely to be higher next year because there was no funding coming in.

·       Disappointment was expressed that public money was being spent in fields that did not benefit society.

·       It was mentioned that the Housing and Property Department had purchased properties in Bangor and Caernarfon to provide accommodation for homeless people, which would reduce the costs of temporary accommodation such as bed and breakfast.