The Chief Officer Finance, Performance and Change reported on an update on the Council’s revenue financial position as at 30 June 2022 and sought approval for any virements over £100,000 which required approval by Cabinet as required by the Council’s Financial Procedure Rules.

She informed Cabinet that Council at its meeting on 23 February 2022 approved a net revenue budget of £319.510m for 2022-23 and due to a technical adjustment, the Revenue Support Grant (RSG) for the Council had increased by £4,336, increasing the net revenue budget for 2022-23 to £319.514m.  She summarised the net revenue budget and projected outturn for 2022-23, which showed a net under spend of £745k, comprising a net over spend of £889k on directorates and a net under spend of £1.634m on council wide budgets. 

The Chief Officer Finance, Performance and Change stated that it was too early in the year to provide a realistic indication of projected council tax for this financial year, and whether the Council was likely to see a reduction in council tax income over the 2022-23 financial year as more people had suffered financial hardship through the pandemic, alongside the current cost of living crisis.  She informed Cabinet that the Council had received funding of £1.151m from the Welsh Government Covid-19 hardship fund in 2021-22 in recognition of the reduced collection rates.  There was no indication yet of any support for 2022-23.  A 1% reduction in the collection rate, could equate to additional pressure to the Council of £1m.    

She informed Cabinet that the Council had successfully claimed £14.682m in expenditure claims and over £1.762m in loss of income claims in 2021-22.  The Welsh Government had also recognised the need for homelessness accommodation to be secured in advance to continue the commitment to focus on support for homeless individuals, providing them with accommodation, and approved £1.479 million to cover these costs for the first six months of 2022-23.  As Covid-19 restrictions were removed in Wales from 18 April 2022, and the ending of the Welsh Government hardship fund on 31 March 2022, the Council approved a budget pressure of £1m in 2022-23 as part of the Medium Term Financial Strategy (MTFS) to meet ongoing pressures, due to additional cost pressures and the ongoing loss of income.  The balance on this fund has been carried into 2022-23 with the use of this fund approved to support the free car parking offer for town centres to the end of September.     

The Chief Officer Finance, Performance and Change reported on the budget virements and technical adjustments made since the approval of the MTFS in February 2022.  An allocation of £500k budget pressure had been made to mitigate emerging pressures.  The Chief Officer Finance, Performance and Change also informed Cabinet of the impact of pay/price inflation and due to the impact of the pandemic, Brexit and the war in Ukraine, the budget would be monitored closely during the remainder of the year. 

The Chief Officer Finance, Performance and Change reported on the budget reduction proposals which amounted to £631k.  Where proposals to meet this requirement had been delayed or are not achievable directorates had been tasked with identifying alternative proposals to meet their requirements such as vacancy management or bringing forward alternative budget reduction proposals.  She also reported that in addition to the 2021-22 budget reduction proposals of £1.760m, there was an outstanding balance to be met of £65k.  There was likely to be a shortfall of £310k and she highlighted the proposals still not likely to be achieved. Directors had been requested to identify if any of these proposals are still not likely to be achieved in full during the 2022-23 financial year, and to identify mitigating actions that will be undertaken to achieve them. She also reported on the budget reductions for 2022-23, which showed a projected shortfall on the savings target of £273k.  

The Leader stated that it was very difficult to make accurate budget forecasts due to the pandemic and high inflation rates.  He questioned the reason for the over spend in Supported Living packages, which had exceeded the budget.  The Corporate Director Social Services and Wellbeing stated that the over spend was attributable to the increasing needs of individuals receiving mental health support through supported living.

RESOLVED:           That Cabinet noted the projected revenue position for 2022-23 recommend that Cabinet approved the virements over £100,000 as outlined in paragraph 4.1.9 and 4.1.10 of the report.