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

·       To note the progress, the position and the relevant risks in the context of the Savings Overview

Note / Suggestion

Offer targeted support on schemes that Departments are unable to realise

Submitted - the report of the Cabinet Member for Finance requesting that the Committee noted the position and relevant risks in respect of the Savings Overview, considered the information for the Cabinet's approval (20-01-26) and provided comment as necessary.

In the 2025/26 Budget Report to the Full Council on 6 March 2025, it had been reported that savings of £3.5 million had been profiled for the 2025/26 budget which was a combination of £100k newly approved in 2025 and £3.4 million that had been approved in previous years. Members were reminded that, as had been consistently reported to the Committee, there had been difficulties in realising savings in some areas.

The Assistant Head of Finance reiterated, ⁠

·       It was noted that 98% of historical savings had been realised, namely £33.8 million of the £34.3 million savings, had now been realised. Detailing the schemes that remained unrealised (worth £590 thousand), the majority of them were in the Adults, Health and Well-being Department.

·        Of the new savings schemes worth £15.6 million, 81% of the savings were reported to have already been realised and a further 3% was on track for timely delivery; risks to realising the savings were evident in some areas with the main ones being the Adults, Health and Well-being Department and the Environment Department.

Following an announcement in December 2025 that there was a 4.1% floor for the Local Government financial settlement, meaning there was no urgency for the Council to implement savings for 2026/27, there would be a need to continue to identify savings for subsequent years which was likely to be challenging.

Summing up the picture, it was reported that £47 million of savings had been realised which was 93% of the £50 million required over the period. It was anticipated that a further 1% would be realised by the end of the financial year, but there would be delays and some risks to the delivery of the remaining plans.

The members thanked the officers for the thorough report.

It was accepted that 98% of the 2015/16 - 2025/26 historical savings plans (going back over 10 years) had been realised, but only 81% of the new savings plans 2023/24 to 2025/26 had been realised and 23 schemes had slipped or had risks to their delivery. However, it was suggested that the Central Services considered offering targeted support on schemes that the Departments were unable to realise.

There were risks to the public and to the Council by seeking savings that were not available, particularly if demand for services increased. It was suggested that a thorough risk assessment of the risks of cuts should be carried out on all schemes. In response, the Cabinet Member for Finance expressed that the situation of finding cuts was becoming more difficult and the impacts to the services of the County's residents were more evident. The Head of Finance reiterated that it was difficult to find savings and that alternative arrangements were in place. As the Finance Department reviewed and discussed plans with Departments and concluded that the original plan was not viable, an alternative plan would have to be considered.

In response to a question, whether the situation was having an impact on statutory services and was consequently approaching a situation of having to refuse services, it was noted that, for example, works such as Llechen Lân addressed likely pressures on the services, and adopted a strategic direction and action plan that would alleviate problems for the future. As a result of the research, it was reported that the vast majority of additional funding was being directed to the field of care in recognition of these additional pressures. The Head of Finance was confident that new savings plans would not be introduced and did not anticipate that they would have to cut back on proposals being offered to residents.

In responding to a question about Departments providing an annual overspend forecast and keeping a risk register so that they do not overspend, it was noted that although no specific business plans were submitted to the Finance Department, the Accounting Unit looked at the staffing situations of Departments and if any change would need to be implemented the relevant Department would have to complete a change of structure form as a means for the Accounting Unit and the Human Resources Unit to ensure that funds were available before approving. It was reiterated that it was the responsibility of the budget holder to ensure that expenditure was within their budget and that a request for more funding would need to be submitted if this was not possible. In response to a supplementary comment that advance planning was a must and ensuring that schemes could be funded, it was noted that grant applications were submitted through the Finance Department and that an accountant would ensure control over resources.

RESOLVED:

·        To accept the report

·        To note the progress, the position and the relevant risks in the context of the Savings Overview

Note / Suggestion

Offer targeted support on schemes that Departments are unable to realise