Agenda item

·       To accept the report on the end of November 2022 review of the Revenue Budget and consider the latest financial situation regarding the budgets of each department / service.

·       To approve the transfer of £3.188 million of underspend on Corporate budgets to the Council's Financial Strategy Reserve.

·       To recommend that the procedure in terms of using funds to fund the financial deficit at the time will be:

-        firstly, use School Balances to fund the additional costs of inflation on the salaries of teachers, assistants, administrative staff and electricity which is above the budget level in the schools.

-        secondly, use the Council Tax Premium Fund to fund the additional pressure in the Homelessness field.

-        finally, use the post-Covid recovery arrangements fund established to fund the associated financial challenges that face the Council.

The report was submitted by Cllr Ioan Thomas  

DECISION 

·       To accept the report on the end of November 2022 review of the Revenue Budget, and consider the latest financial position regarding the budgets of each department / service.  

·       To approve the transfer of £3.188 million of underspend on Corporate budgets to the Council's Financial Strategy Reserve.  

·       To recommend that the procedure in terms of using funds to finance the financial deficit at the time will be:  

·       firstly, use School Balances to fund the additional costs of inflation on the salaries of teachers, assistants, administrative staff and electricity which is above the budget level in the schools. 

·       secondly, use the Council Tax Premium Fund to fund the additional pressure in the Homelessness field. 

·       finally, use the post-Covid recovery arrangements fund established to fund the associated financial challenges that face the Council. 

DISCUSSION 

The report was presented detailing the latest review of the Council's revenue budget for 2022/23, and the projections for the end of the financial year. It was explained that current projections suggested that the Departments of Adults, Health and Well-being, Children and Families, Education, Economy and Community, Highways and Municipal and Housing and Property would overspend by the end of the year. It was added that there was significant overspend by five of the six Departments, while the other Council Departments were operating within their budget.  

Although the impact was not as substantial in 2022/23 compared to the previous two years, additional costs, income losses and a slippage in the savings programme as a result of Covid continued in some fields. It was also added that there was also a delay to achieve savings that had contributed to some of the Departments overspending.  Attention was drawn to the main fields where there were substantial differences.  

An overspend of over £2.2 million was anticipated this year in the Adults, Health and Well-being Department, this being a combination of factors, including a failure to realise savings to the value of £930,000. This year it was highlighted that there were pressures on supported accommodation and direct payment packages in Older People's Services while staffing above the budget level and an income shortfall were issues in Community Care.  

Details were given of the overspend of £1.6m anticipated in the Education Department as a result of the additional cost of inflation on the salaries of teachers, assistants, administrative staff which was £1,031,000 above the budget this year. It was also anticipated that the impact of higher electricity costs on the schools for the first six months from October 2022 onwards would be £614,000. It was expressed that it was appropriate to use school balances to fund the additional pressures this year considering that the schools had already benefited from almost a million in energy savings which had derived from Covid and the associated lockdowns.  

Attention was drawn to the ongoing overspend problems in the field of Waste and Recycling and the difficulties the Highways and Municipal Department were having to realise savings worth £608,000. It was also noted that the Byw'n Iach Company was overspending due to higher electricity prices and as the impact of Covid was continuing in 2022/23 and was disrupting the Company's ability to generate income. Reference was made to the pressure in the Homelessness field due to the implications of new legislation relating to Homelessness; a net overspend of £2.7 million was anticipated this year within the Housing and Property Department.  

Corporately, it was noted that there were prudent projections when setting the 2022/23 budget and a change to taxation legislation were factors that contribute to the additional tax outputs. It was anticipated at the end of the year that use must be made of Schools and Council reserves to fund the financial gap of £7.4 million projected for 2022/23. 

Observations arising from the discussion 

·                  Members thanked the department for the report and it was expressed that the Council was in safe hands and they had complete trust in the Finance team's work.   

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