Venue: By Zoom. View directions
Contact: Wyn Richards
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Apologies To receive any apologies for absence. Minutes: Apologies for absence were received from County Councillors A Kennerley, A Cartwright and T Colbert. |
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To receive the minutes of the meeting held on 29-07-2022. Minutes: |
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Financial Forecast for the year ended 31st March 2023 (as at 30th September 2022) PDF 448 KB To receive and consider the report of the Cabinet Member for Finance and Corporate Transformation. Minutes: Documents Considered: · Report of the Cabinet Member for Finance and Corporate Transformation.
Issues Discussed: · The report provided the forecast revenue outturn at the end of September. · The current economic situation was continuing to impact on the Council’s finances as was rising inflation. Employee costs were likely to rise significantly due to recent pay awards. · Capital schemes was being impacted due to increasing contractor and materials costs as well as the cost of borrowing became more expensive. · The budget set by the Council in March was insufficient to cover costs and the Council was taking action to reduce expenditure and draw on reserves. · At quarter 1, it was reported that £3.827m was being drawn from specific reserves to cover pressures and in addition an additional shortfall of £1m had been forecasted. · The position at quarter 2 projected an increased deficit of £7.064m. £5.316m was being drawn down from specific reserves leaving a further £1.748m deficit to be funded from general reserves. · The revised projection included an estimate of the NJC and Teacher’s pay awards at an additional cost of £8m to be found in the financial year. The budget set in March set aside funds for assumed pay costs but they did not meet the fully estimated costs leaving a £3.7m gap in year. · Steps were being taken to reduce expenditure by £2m over the remainder of the financial year. Some capital schemes would be delayed reducing the need to borrow and revised assumptions on Council Tax collection would also assist the position. · The reversal of the National Insurance increase had reduced the employer’s National Insurance contribution. · The delivery of cost reductions were projected to be £7.848m for the year (73% of the total) with £3m unachieved and at risk of delivery for the year. Services were reviewing these and considering mitigating action to deliver within the budget allocated. · It was anticipated that £14m of reserves would be used to support the budget during the year. · The Highways, Transport and Recycling Service had been carrying a £1.3m unachieved savings target within their budget. This had been managed within the overall Service budget for 2021-22. The service had identified how these savings could be absorbed on a permanent basis by realigning budgets to recognise the additional income being achieved from the street works, highways and highways design income. · The level of financial risk is significant such as the risk of increased pay costs as negotiations continue, demands for services could increase such as winter pressures on social care, rising inflation, the cost of borrowing. · Holding sufficient reserves is crucial for the Council’s financial resilience. · Additional funding had been provided by Welsh Government in previous years towards the end of the year but this was unlikely to happen for the current financial year so budgets would have to be planned without that expectation. · The indicative funding allocations from Welsh Government for the next two years were well below the level of inflation and would represent a real term cut in funding for the ... view the full minutes text for item 3. |
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Capital Forecast 2022 - 23 as at 30th September 2022 PDF 210 KB To receive and consider the report of the Cabinet Member for Finance and Corporate Transformation. Minutes: Documents Considered: · Report of the Cabinet Member for Finance and Corporate Transformation.
Issues Discussed: · The revised programme is budgeted at £96.46m following the awarding of additional grants and the reprofiling of budgets between financial years. · Actual spend amounts to £24.37m (25% of the total budget). · 42% or £40.66m of the capital programme will be supported through borrowing. · The continued increase in inflation is having an impact on schemes as materials and construction costs rise. Interest rates are also rising increasing the cost of borrowing. · Service managers are monitoring schemes and mitigating increases where possible. · Some schemes may be reduced or paused until there is more certainty about cost and funding. Any additional funding required is likely to increase borrowing which will increase costs on the revenue budget. To reduce expenditure some pipeline capital schemes that have not progressed to approval stage have been delayed, thus reducing the immediate need to borrow, delivering an underspend on borrowing costs for the year of £0.5m. · Capital receipts - £810k have been received and further sales agreed to the value of £870k. It was expected that sales totalling £2m would be achieved in the financial year.
· Questions:
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To note the schedule of meetings as set out on the forward work programme. Minutes: Documents Considered: · Forward Work Programme for 2023.
Issues Discussed:
Outcomes: · Noted.
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