To consider the information, the risks arising from the
strategy, and scrutinise the Cabinet’s decisions
Decision:
DECISION:
·
To accept the report
·
To note the timetable, the projections and
relevant risks in the context of the Council's budget
·
To accept the Cabinet's
decisions (28 September 2021)
Minutes:
A report was submitted at the request of the Cabinet Member for Finance,
noting the timetable, projections and relevant risks in relation to the
Council's budget strategy to the Committee. The context of the report was set
out, highlighting that the Cabinet should consider the report from 28 September
2021. The Cabinet decided to approve the procedure and timetable for producing
the Budget for 2022/23, noting that if there was a funding gap in balancing the
2022/23 budget, the Council would use contingency budgets and reserves to
mitigate resource losses in the short-term, and assess the situation before
identifying any additional savings required during the summer of 2022. Also, the
Cabinet decided to accept the contents of the report as the Council's Medium
Term Financial Plan, while noting that financial planning was extremely
challenging.
It was noted that there were a number of bids for additional resources
this year as a result of additional pressures on the Council's services. It was
noted that the Council's main financial source was the Welsh Government Grant
and that the Government had noted its intention to publish a 2022/23 draft
settlement for local authorities on 21 December, and the final settlement on 2
March 2022. It was explained that the timetable was very challenging and that
there was financial uncertainty as a result of the pandemic.
The Cabinet Member for Finance emphasised the importance of the virtual
seminars on the budget for members in January, and he encouraged everyone to
attend the sessions.
The Head of the Finance Department noted that there was a request to
minimise any change between the draft settlement and the final grant
settlement, as it was difficult, under the current circumstances, to plan for
2022/23. He added that Covid figures remained high in Gwynedd and that there
was currently no clear indication when the country and the world would recover.
He referred to the support of the Hardship Fund that was currently funding
additional significant costs in the fields of homelessness, care and free
school meals, but stated his concern that arose from the Minister for Finance
and Local Government's statement that there would be no Hardship Fund from April
2022 onwards. Consequently, the Council's ability to continue to fund the above
services on a higher level was dependent on an additional funding allocation in
the settlement.
Reference were
made to assumptions that set three scenarios - best, medium and worst, within
reason. Although they were broad assumptions, it was noted that the Council's
financial position was robust, and healthy reserves meant that these funds
could be used to mitigate the short term situation. Attention was drawn to the
challenges that would face the Council, which included Covid recovery, an
inflationary increase in salaries, national insurance, the cost of fuel etc.
It was expressed that there was no reason to adapt the strategy, as
there was currently insufficient evidence to do so.
Thanks were expressed for the report
During the discussion, members raised the following matters:-
·
The recommendation
to use reserves to mitigate the situation was a very positive step in the
short-term.
·
Agreement with the
use of reserves in order to avoid cuts.
·
Has consideration
been given to the implications of new ways of working?
·
There was a robust
and successful procedure of monitoring savings - it would be easy to use reserves
- a message should be shared with departments noting, although there were no
new planned savings, that the Council would need to work effectively, and it
was suggested that efficiency arrangements should be put in place.
In response to a question about the future impact of Covid on the
Council's budgets, the Head of Finance Department noted that Covid had meant a
significantly higher expenditure over the past 18 months. However, Gwynedd had
been able to claim an extremely respectable sum from the Hardship Fund. The
Council decided early during the pandemic to prioritise the County's residents'
health and safety, and as the Government later stepped in with contributions,
Gwynedd's budgets were in a favourable position by the end of 2020/21, with the
reserves available to deal with the potential of a financial blow in 2022/23.
In response to a comment regarding the savings relating to office
running costs and travel expenses, it was noted that travel costs of elected
members and staff were not significant in the context of the Council's entire
budget, and that there had been no huge reduction in these costs as care staff
and other external staff had continued to travel in order to fulfil their
duties.
In relation to establishing efficiency arrangements, it was suggested
that there was always room for improvement, even in a crisis. It was considered
that the approach should not be hurried, that historical savings should
continue to be monitored, with an emphasis on departments taking ownership.
RESOLVED
·
To accept the report
·
To note the timetable, the forecasts and relevant risks in the context
of the Council's budget
·
To accept the Cabinet's decisions (28 September 2021)
Supporting documents: