Agenda item

To present the revised Medium Term Financial Plan (MTFP) to the Joint Committee for approval.

To accept the revised Medium Term Financial Plan (MTFP)

The Medium Term Financial Plan (MTFP) was presented by the Head of Finance Department, with a request for approval by the Joint Committee.  The MTFP attempts to look ahead in a period of instability, outlining the financial matters affecting GwE over the next three years. 

Table 4.11 notes the Cumulative Effects and sets the scenario. As seen, during 23/24 the best scenario is identified, with a financial saving of £102,000. The Joint Committee was reminded that the Soulbury Agreement is currently unknown, and that the salary increase may need to be backdated to September 2022.

At the other end, it was noted that it was very difficult to look at 24/25 without knowing what the future holds and that the best scenario for 24/25 would be no further cuts. 

As regards value for money, evaluating and capturing impact, it was confirmed that a balanced budget must be set, looking at value for money and forward planning, and it was felt that the paper acknowledged the situation and offered a solution.

The Joint Committee asked, noted and questioned as follows:

It was noted that it was a very useful document and that it would be useful to look at the historical cuts for GwE (mentioned in The Financial Challenge part of the report).  One challenge is to consider a meaningful scenario whilst attempting to ensure value for money and impact, and work is ongoing in this respect. It was felt that GwE had the strength of working in partnership, and that they did not want to be restricted by cuts. The key is clear and robust leadership, and this mutual solution was welcomed.

Concern was noted that the document refers to serious challenges. It was felt that the figures speak for themselves, with budgets collated and it was questioned whether the Joint Committee needed to talk with the Government?  In light of this, one Member referred to the pension contribution reimbursement Wrexham County Borough Council had received as a one-off credit, and it was questioned when the pension fund would be re-evaluated?

The Host Authority's Head of Finance confirmed that there was a difference between the Gwynedd Pension Scheme and the Clwyd Pension Scheme. It was confirmed that the contribution had been decreased, rather than a reimbursement made in GwE's instance.

The report was appreciated, and one Member noted that the situation was concerning, especially in light of the fact that the area had already been subjected to 'Austerity 1'. He reinforced the comment that every possible opportunity must be taken to urge the Government, otherwise no progress can be made without investment.  It was confirmed that education needs more funding, and it was noted that it would be useful to put forward a case to the Government that Welsh Government is dependent on the UK Government, as Welsh Government decides on how the money is put to use. The need was noted for a mature discussion of some ideas, therefore challenging Welsh Government expenditure.

Reference was made to a recent meeting with Welsh Government regarding the financial pressures on Local Authorities, and consequently on schools. It was reported that Members had to make difficult decisions, and it was confirmed that ADEW had also shared concerns with Welsh Government.

IT WAS RESVOLVED

To accept the revised Medium Term Financial Plan (MTFP).