Agenda item

       i.        To accept the conclusions of the Chief Executive on the individual schemes
as noted in Appendix 1 and 2.

      ii.        In accordance with what was noted in Appendix 1, to move the delivery profile for schemes valued at £1,012,750 to 2022/23 and to recognise that the situation had now changed so much that it was not possible to deliver savings schemes valued at £848,040 and to eliminate them from the budget.

     iii.        To use the £1.6m provision set aside in the 2020/21 budget in order to do
so, and to achieve the residual gap with the first use of savings planned for
2021/22.

     iv.        When preparing the 2021/22 budget, to agree that the delivery profile for
schemes valued at £511,250 should be moved to 2022/23 and to recognise
that the situation had now changed so much that it was not possible to
deliver savings schemes valued at £595,450 and that £705,930 in savings
should be used for the budget as noted in Appendix 2.

The report was submitted by Cllr Ioan Thomas  

DECISION

        i.         To accept the conclusions of the Chief Executive on the individual schemes as noted in Appendix 1 and 2.

      ii.         In accordance with what was noted in Appendix 1, to move the delivery profile for schemes valued at £1,012,750 to 2022/23 and to recognise that the situation had now changed so much that it was not possible to deliver savings schemes valued at £848,040 and to eliminate them from the budget.

     iii.         To use the £1.6m provision set aside in the 2020/21 budget in order to do
so, and to achieve the residual gap with the first use of savings planned for
2021/22.

     iv.        When preparing the 2021/22 budget, to agree that the delivery profile for
schemes valued at £511,250 should be moved to 2022/23 and to recognise that the situation had now changed so much that it was not possible to
deliver savings schemes valued at £595,450 and that £705,930 in savings should be used for the budget as noted in Appendix 2.

DISCUSSION

The annual report was submitted, noting that over £30 million of savings had been realised since 2015/16 but it was noted that the report back in October had highlighted concerns about risks to schemes valued at £3.4 million this year as a result of Covid-19. Since then, it was added that the Chief Executive and the Head of Finance Department had discussed the departmental savings with the Heads of Department and Cabinet Members.

The recommendations that derived from these meetings were highlighted. It was emphasised that Covid-19 restrictions had impaired the opportunity for departments to address a number of the savings schemes, and it was noted that this was a matter of timing with schemes valued at £1.7m that could be delivered in 2021/22. However, it was recommended to re-profile schemes valued at £1m that would need more time to be realised, and to recognise that the situation had now changed so much that it was not possible to deliver savings schemes valued at £850k, and to eliminate them from the budget.

When preparing the 2020/21 budget in February 2020, it was noted that the budget provided £1.6m to recognise the likelihood of failure to achieve some savings. It was highlighted that re-profiling and eliminating would have an impact of £1.86m on the budget, but by using the £1.6m provision an extra £260k would be required when preparing the 2021/22 budget. In doing so, it was noted that it would bring the budget closer to the reality of the Council's position.

Attention was drawn to Appendix 2, which noted the savings that had been planned for 2021/22. From the £1.9m already planned for delivery, schemes valued at £511k would take longer to deliver and there was a real doubt whether or not the savings valued at £595k would be realised. As a result, it was recommended to re-profile £511k and eliminate £595k of savings, whilst accepting that just over £700k in net savings would be available to support the 2021/22 budget.

The Chief Executive explained the logic behind the recommendations, emphasising that some schemes would take longer to realise as a result of the Covid-19 crisis, while others would need to be eliminated completely such as the Improve efficiency of field workers Scheme by the Adults Department, as discussions had highlighted the unlikelihood of realising the scheme as a result of the need for the resource to implement other savings schemes within the department.