Contact: Lisa Richards
No. | Item |
---|---|
Apologies To receive apologies for absence. |
|
Declarations of Interest To receive declarations of interest from Members. Minutes: There were no declarations of interest. |
|
Notes To receive the notes of the last meeting. Minutes: Documents: · Notes of the last meeting
Outcomes: · Noted |
|
To consider the draft budget. Additional documents:
Minutes: Documents: · Report of the Portfolio Holder for Finance · Medium Term Financial Strategy · Finance Resource Model · Cost Reductions · Report and Register – Fees and Charges · Capital Strategy and Treasury Management · Reserves Policy · Residents’ Survey
Background · The budget does not reflect the ongoing direct impact of the pandemic. The level of Welsh Government support for future years has yet to be determined. · The budget is based on a ‘business as usual’ basis – the provisional settlement is also predicated on this basis. · The final settlement is due on 2 March 2021 which is after the date set aside for Council to approve the 2021/22 budget. The Head of Finance was not expecting significant changes. · Data driving the formula will be provided with the budget papers · Current projections indicate that there will be a small deficit at year end · There have been no significant changes to the MediumTerm Financial Strategy (MTFS) but it has been refreshed and reviewed in line with the current economic and financial outlook · Engagement with the public has considered impacts on service delivery. The public was asked to indicate priorities for spending. · The Finance Resource Model (FRM) provides an outlook over the next few years to coincide with the life of the MTFS. Budget gaps remain for the future financial years which will have to be resolved. · Information provided to the Panel detailed the budget proposals across all services, the investment proposed and cost reductions of £11.8M with details being provided in Impact Assessments · The Section 151 Officer has also provided her opinion on the proposed budget
Discussion · It was noted that there was little change in the figures provided to the meeting from those provided to a Members’ Seminar prior to the announcement of the provisional settlement. The settlement had been better than expected and Members would have expected a greater movement in the proposed budget. The Head of Finance informed the Panel that there had been changes to the budget since December including the removal of efficiencies against schools delegated budgets offering them a level of protection and the removal of other efficiencies that were deemed to risky or undeliverable. The improved settlement figure covers these and an increase in the budget for the Council Tax Reduction scheme as there has been an increased number of claimants due to the pandemic and this figure is likely to increase further as furlough ends. A further £700K in Social Care has now been recategorized as a pressure rather than a risk. · It was noted that a contingency fund (Budget Management Reserve) had been established to alleviate the risk in the 2020/21 budget. Children’s Services are projected to overspend and Members asked how that would be dealt with. The increase in costs was attributable to a sharp rise in the number of children looked after (CLA) due to the pandemic. The Head of Finance reported that service over and under spends netted off and were accommodated within the budget. The pressure of additional CLA is proposed to be included ... view the full minutes text for item 4. |
|
Date of Next Meeting The next meeting is scheduled to take place on 26 February 2021 at 10am. |