Agenda item

 Report by Dewi A Morgan, (Head of Finance)

A presentation was given by the Head of Finance, under the following headings:

 

The timetable for deciding upon and seeking an agreement on the Budgetary Strategy

Revenue Budget: The Equation

2023/24 Overall Budget Projections

Wage Inflation of £14.2M

Inflation on Services and Supplies of £11.1m

 

Reference was made to the Care and Education Demography, noting that Child Care was £32k, and Schools was £229K, i.e,:

            Primary Schools                     (£135k)

            Secondary Schools                 £49

            Special Schools                      £315K

Based on a reduction (primary) / increase (secondary/special) in pupil numbers

 

Attention was also drawn to the:

Grant Settlement 2023/2024, and Pressure on Services, noting - Permanent Revenue Bids £2.7m - Education Department - provision of Primary, All-through, and Special school meals £285,580

 

He also referred to headings:

 

Revenue Bids - Education was £285,580

Planned Savings Schemes

Current Budget Projections 2023/24

2023/24 Equation

 

He referred specifically to Schools' Savings, noting that:

Discussions had commenced at 6%

            Preparations for 3%

Some schools were facing compulsory redundancies - but not as a result of the proposed cut

            Special Schools Excluded

The impact of the protection arrangement for small schools =  everyone else must contribute more

            Some schools pushed in excess of the 3%

            Therefore, propose a cap of 3%

            The saving across the sector therefore would be 2.39%

            1.39% and 0.99% over two years 

 

New Savings Schemes

                                                                        23/24               24/25               total

            Primary Schools                                 541,600           386,900             928,500

            Secondary Schools                             605,000           432,600             1,037,600

            Special Schools                                  0                      0                      0

            Total                                                    1,146,600        819,500             1,966,100

 

 

New Savings Schemes 2023/24

Departmental Savings (not including schools)           £3,097,370

School Savings                                                           £1,146,600

 

New Savings Schemes 2023/24 Central Education was £835,000

 

He also noted the Council Tax and Projections for 2024/25

 

The Head of Finance gave thanks for the presentation.  The Cabinet Member for Finance expanded on the arrangements that had led to the decision on the proposed cuts, and noted that the Cabinet had tried to be fair, had considered all the Council's departments, and had examined the savings proposals over three days.  He noted that some positive matters had arisen, such as the settlement that was somewhat better than anticipated, a sum had been received in relation to the council's method of dealing with loans, and he felt that the Cabinet had done its best on behalf of all Departments. The Head of Education noted that due attention had been paid and that all Heads of Service had been challenged, and that the cuts to education had not been considered lightly.

 

The Chair noted that nobody was ever enthusiastic about making cuts, and the impact of central cuts on schools was questioned.  It was confirmed that any impact on schools had been minimised, and that any impact on GwE would be discussed at Chief Executive level.

 

At the Chair's request, it was confirmed that the figures dealt with 2023/2024 and 2024/2025 and that the Council tried to plan on a two-year cycle. It was noted that naturally it was impossible to predict future inflation levels, but the Finance Department was working on the basis that these cuts would be sufficient, although this could not be guaranteed.  The Head of Education reminded everyone that the % had been split, with the heaviest burden in the first year as the schools had larger balances this year.

 

RESOLVED to accept the report.