Issue - meetings

To approve additional financial support above the contractual payment 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 with Byw'n Iach at the end of the financial year. Based on the current review, it is estimated that the value of the support will be £295k.

To approve a transfer of £3.365 million of underspend on corporate budgets to the Council's Financial Strategy Support Fund, to be used at the end of the financial year to fund the overspend faced by the departments.

To approve the financial virements as outlined in Appendix 3 following a review of the 2024/25 Council Tax Premium, with a transfer of £2.089 million from the Financial Strategy Support Fund to the Council Tax Premium Fund.

The report was submitted by Cllr Nia Jeffreys. 

DECISION

To approve additional financial support above the contractual payment 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 with Byw'n Iach at the end of the financial year. Based on the current review, it is estimated that the value of the support will be £295k.

To approve a transfer of £3.365 million of underspend on corporate budgets to the Council's Financial Strategy Support Fund, to be used at the end of the financial year to fund the overspend faced by the departments.

To approve the financial virements as outlined in Appendix 3 following a review of the 2024/25 Council Tax Premium, with a transfer of £2.089 million from the Financial Strategy Support Fund to the Council Tax Premium Fund.

DISCUSSION

It was expressed that there was a projected £6.5 million overspend in Council departments following the end of November review, which was a small increase from the August projections. ⁠It was highlighted that 76% of the overspend was in the adult and children care field, and it was added that 6 departments were overspending. 

It was identified that there was an underspend on corporate budgets, which reduced the total overspend projections to £2.3 million.

Reference was made to Appendix 2, which explained the main matters and the fields with substantial differences. ⁠ ⁠

Reference was then made to Appendix 3, which noted that Council tax income and the income from the second home and empty properties premium had been reviewed, following the end of the 2024/25 financial year. The result was that £2 million relevant to the 2024/25 Council Tax Premium was to be transferred from the Financial Strategy Support Fund to the Council Tax Premium Fund.

It was explained that the report had been submitted to the Governance and Audit Committee a week earlier. ⁠

Observations arising from the discussion:

·       The importance of putting the information in its context was emphasised, as well as identifying the fact that it was not possible to project much of this overspend, particularly in those departments that responded to demand. It was added that there was a need to spend according to the demand, and that the Council had a responsibility to offer these services and protect the people of Gwynedd.

·       Attention was drawn to the reality of underfunding Local Government to the people of the County.

·       Pride was expressed that the terminology 'budget deficit' was now used in the report instead of 'overspend', which reflected the reality. It was confirmed that work was progressing to seek to make those savings, but that doing the right thing for the people of Gwynedd was the priority.