Agenda item

To note the position and the relevant risks regarding the Savings Overview, consider the decisions for the Cabinet and comment as necessary.

DECISION:

To accept the report and note the situation and relevant risks in the context of the Savings Overview.

Note:

Draw up a table in future that differentiates between the historical situation and the latest situation so that it is possible to identify risks for the current situation.

Submitted – the report of the Cabinet Member for Finance requesting that the Committee notes the position and relevant risks in respect of the Savings Overview, considers the decisions for the Cabinet (15-10-2024) and provides comment as necessary. It was noted that the report highlighted the position up until the end of August 2024.

It was highlighted that to close the funding gap this year, it was necessary to implement £5.6 million worth of savings during 2024/25; this was a combination of £3.6 million that had previously been approved in February 2023, and new savings approved in February 2024 worth £2 million.

It was reported, over the past few years, as had been consistently reported to the Committee, that there had been difficulties in realising savings in areas in the Adults, Health and Well-being Department and the Waste field, therefore £2 million worth of schemes where there were significant risks to their delivery had been scrapped during 2023/24.

⁠He drew attention to the new savings and also the savings that had been approved previously, such as historical savings schemes for the period from the 2015/16 financial year up until the 2024/25 financial year.  He highlighted the fact that 98%, which was over £33.7 million of the £34.3 million of savings, had now been realised.

In the context of the new savings schemes worth £12 million, it was reported that 65% of the savings had already been realised with a further 8% on track to be delivered on time. Nonetheless, he indicated that there were clear risks to delivering the savings in some fields, such as the Adults, Health and Well-being Department and the Environment Department.

⁠He referred to the value of those savings that had already been approved for 2025/26 onwards, and noted that further savings schemes and cuts for 2025/26 were already under consideration by Cyngor Gwynedd – these would be the subject of a further report.

⁠In summarising the situation, it was reported that £41.7 million of savings had been realised (90% of the required £46.6 million over the period) and a further 2% was forecast to be realised by the end of the financial year (although there was a delay and some risks to delivering the remaining schemes).

The Cabinet Member was thanked for the report.

            Matters arising from the ensuing discussion:

·       There was a risk attached to not delivering the savings and also from delivering them.

·       The report portrayed a good situation over the past 10 years, but we now needed to focus on the more recent years which of course portrayed a picture of failing to achieve savings as the situation was becoming more difficult – a suggestion to draw up a table that distinguished between historical and current savings.

·       Were the departments confident that they would be able to achieve the 2024/25 savings?

·       Concern that some savings were slipping yearly.

·       There was a need to look at services' culture and arrangements – consider alternative ways of budgeting rather than 'chipping into' or using money that had been collected for another purpose.

In response to the comments, the Cabinet Member noted that every effort was being made to reduce the adverse impact on the residents of Gwynedd. He added that the risk of failing to deliver was being considered and was certainly evident in some situations.  In terms of departments' confidence in realising the 2024/25 savings, he noted that the certainty varied from scheme to scheme and referred to Table 1 (Summary of the status of all savings schemes since 2015) in the report which provided an analysis of the situation.

RESOLVED:

To accept the report and note the situation and relevant risks in the context of the Savings Overview.

Note:

Draw up a table in future that distinguishes between the historical situation and the latest situation so that risks to the current position can be identified.