Agenda item

To submit the report of the Head of Finance.

The report was submitted by the Senior Finance Manager, noting that the report highlighted some signs of difficulties with achieving savings. It was stated that some departments were overspending and these were discussed individually.

Adults, Health and Well-being Department - it was stated that latest forecasts suggested over £1.8 million of overspend by the department. It was added that overspend would be partly alleviated to £658k following the receipt of a grant and use of one-off funding.

Children and Supporting Families Department - it was noted that the level of overspend in the department had intensified further to £3.2 million with £2.6 million in the field of placements, with a substantial proportion of overspend resulting from out-of-county placements. It was added that a Budget Taskforce had been established to address financial issues in the department, and it was stated that an additional £1.8 million would be available for the Children's Department in order to meet additional pressures.

Highways Department - it was stated that overspend continued in the area of waste collection and disposal this year, noting that transitional costs before moving to new arrangements had led to the overspend.

Attention was drawn to corporate underspend with favourable forecasts of additional Council Tax yield and Council Tax Premium yield. Despite this, it was highlighted that there was a continued trend of back-dating transfers from Council Tax to Non-domestic Rates. It was also emphasised that the number claiming Council Tax reductions was at its lowest level for the fourth year in succession. The Cabinet's decision was noted as follows:

Resolved to:

·    Accept the report on the end of November 2019 review of the Revenue Budget, and consider the latest financial situation regarding the budgets of each department/service.

·    Note that there is significant overspend by the Adults, Health and Well-being Department this year, as complex details need to be clarified in Adult care, the Chief Executive has already called a meeting of the relevant officers and commissioned work to obtain a better understanding and a clear response programme. To try and address overspend in future, an additional resource has been allocated as part of the bidding process for the 2020/21 budget.

·    Note that a Children's Budget Taskforce has been commissioned by the Chief Executive to address the complex financial issues of the Children and Families Department in order to get to the root of the overspend, with the intention of presenting a report to the Cabinet which will detail the response plan. To try and address overspend in future, an additional resource has been allocated as part of the bidding process for the 2020/21 budget.

·         On Corporate budgets, that:

¾     (£198k) yield on Council Tax Premium added to the £2.7 million that has already been allocated in 2019/20 is considered for the Housing Strategy.

¾     (£75k) relating to capital costs be allocated to the capital programme fund.

¾     (£500k) of Corporate underspend be allocated to fund the lack of grant in the area of sustainable social services.

¾     (£312k) be used to fund one-off bids that have been presented by the Departments for the purpose of 2020/21 expenditure.

¾     The balance of (£502k) goes to the Council's general balances.

Members were given an opportunity to ask questions and offer observations. During the discussion, the following main points were highlighted:

·    In terms of School Transport in the Education Department, it was asked whether or not the department was examining the reasons for the overspend. The Chief Executive noted that there were many reasons for the overspend which included children not settling in schools and resulting in them attending other schools. It was emphasised that the conclusions of the review highlighted the need for the department to be more challenging and to consider different methods of offering transport and it was stated that the Chief Executive had asked two departments to consider joining forces to see whether it would be possible to come to a conclusion and to undertake the work efficiently. It was asked whether a review had been undertaken and it was stated that some contracts were expensive but that the department was examining each case on an individual basis.

·         When examining the overspend of the Children and Supporting Families Department, it was asked whether a discussion was being held with other counties as out-of-county problems were common across north Wales. It was stated that an internal taskforce had been set up due to the lack of systems and the overspend which had resulted from a lack of savings schemes. Due to the nature of the service, it was added that there was a need to examine what would be possible and regional solutions were part of the schemes and that out-of-county placements had initiated collaboration.

·    It was stated that the care field was an annual problem and that the solution was not easy. It was added that Councils across Wales faced these problems and that there were serious cases within communities. It was emphasised that matters were not being discussed seriously on a national level and that there was a need to accept that demand in the care field was increasing annually. It was emphasised that it was not possible to cut these services but instead there was a need to ensure that the fields were working effectively.

RESOLVED to accept the report.