Agenda item

-        To accept the report on the end of November 2018 review of the Revenue Budget and consider the latest financial position in respect of the budgets of every department/service.

-        To ask the Cabinet Member for Adults, Health and Well-being, together with the Head of Department, to get to the root of the Provider service overspend and take steps to reduce the overspend, and to report to the Cabinet on the response plan.

-        Due to an increase in the overspend on a number of budget headings by the Children and Supporting Families Department since the last review, to consider the situation when receiving the Cabinet Member’s performance report (29/01/19 Cabinet) with a view to attempt to reduce the overspend by the end of the financial year.

-        Due to the level of overspend on pupils’ transport by the Education Department, to consider the situation when receiving the Cabinet Member’s report (29/01/19 Cabinet).

-        To allow the Environment Department to allocate (£60k) of the department's underspend to conduct a review by commissioning research by the University and employing extra officers to collect evidence in the Public Transport field following a number of issues over recent years.

-        Harvest (£2,984k) of the net underspend on Corporate budgets,

·         with (£700k) associated with the Council Tax premium to be allocated to a specific fund to be considered for the Housing Strategy.

·         (£435k) relating to capital costs to be transferred to the capital programme’s financing fund.

·         with the remainder of (£1,849k) to be transferred to the Supporting the Financial Strategy Fund to assist with inevitable one-off pressures on the Council's budgets.

The item was submitted by Cllr Peredur Jenkins

DECISION

-        To accept the report on the end of November 2018 review of the Revenue Budget and consider the latest financial position in respect of the budgets of every department/service.

-        To ask the Cabinet Member for Adults, Health and Well-being, together with the Head of Department, to get to the root of the Provider service overspend and take steps to reduce the overspend, and to report to the Cabinet on the response plan.

-        Due to an increase in the overspend on a number of budget headings by the Children and Supporting Families Department since the last review, to consider the situation when receiving the Cabinet Member’s performance report (29/01/19 Cabinet) with a view to attempt to reduce the overspend by the end of the financial year.

-        Due to the level of overspend on pupils’ transport by the Education Department, to consider the situation when receiving the Cabinet Member’s report (29/01/19 Cabinet).

-        To allow the Environment Department to allocate (£60k) of the department's underspend to conduct a review by commissioning research by the University and employing extra officers to collect evidence in the Public Transport field following a number of issues over recent years.

-        Harvest (£2,984k) of the net underspend on Corporate budgets,

·         with (£700k) associated with the Council Tax premium to be allocated to a specific fund to be considered for the Housing Strategy.

·         (£435k) relating to capital costs to be transferred to the capital programme’s financing fund.

·         with the remainder of (£1,849k) to be transferred to the Supporting the Financial Strategy Fund to assist with inevitable one-off pressures on the Council's budgets.

DISCUSSION

The report was submitted, noting that the department detailed the latest review of the revenue budget, along with the projections for the end of the financial year.  It was expressed that it was a mixed picture with acceptable financial control in a number of the Council's departments.  It was added that significant overspend was anticipated in the Education Department, Children and Supporting Families Department and Highways and Municipal Department.

It was reported that five departments, together with the Corporate budgets, would underspend, but the other five departments would overspend. It was noted that the Adults, Health and Well-being department was overspending as a result of overspend in the Provider service and a slippage in the savings schemes. It was added that there would be a reduction in the overspend as a result of using grant funding.

It was noted that overspend in the Children and Supporting Families Department was getting worse. However, a grant received from Welsh Government recently had reduced the overspend slightly. It was explained that school taxi and bus transport continued to cause an overspend in the Education Department.  In looking at the Economy Department, it was noted that a slippage in the savings scheme in the Leisure field and a reduction in income projections were the reasons for the overspend. It was reported that the Highways and Municipal Department had started steps to reduce the overspend in the Waste field.

It was noted when looking at the corporate budgets that the projections were favourable, and that 2018/19 was the first year of collecting the Council Tax Premium. It was added that the projections of harvesting this additional tax were higher, but that back-dating the property transfers from the Council Tax list to the Business Tax list was reducing the income.

Observations arising from the discussion

-    It was noted that the budgetary procedures of the Finance Department was the reason for the acceptable financial position, on the whole, and the Department was thanked for its hard work.