The Chief Officer – Finance, Performance and Change presented a report providing Cabinet with an update on the Council’s revenue financial position as at 30 September 2022. She provided a background to the report and explained that as part of the Performance Management Framework, budget projections were reviewed regularly and reported to Cabinet on a quarterly basis. The delivery of agreed budget reductions was also kept under review and reported to Cabinet as part of this process.

The Chief Officer – Finance, Performance and Change referred to the Council’s net revenue budget and projected year end spend for 2022-23 as

shown in Table 1 of the report. She explained that the overall projected position at 30 September 2022 was a net over spend of £3.433 million comprising £6.098 million net over spend on directorates and a net under spend of £2.665 million on Council wide budgets.

The Chief Officer – Finance, Performance and Change explained the implications of the significant reduction to the WG Hardship fund and Covid related claims to Welsh Government. She updated Cabinet on budget virements and technical adjustments and pay and price inflation. In recent months the Council had experienced additional costs not only as a result of the pandemic, but also rising costs resulting from Brexit, the impact of the war in the Ukraine, and increases in inflation not seen for over a decade.

The Chief Officer – Finance, Performance and Change outlined the budget reduction proposals, prior year budget reductions and budget reductions for 2022-23. She provided a summary of the financial position for each main service area and the most significant variances and a review of earmarked reserves.

The Chief Officer – Finance, Performance and Change reported that this was the first time in her career in local government that she had had to report such significant in year budget pressures. She wanted to reassure Cabinet that it was reflected across Wales and not unique to Bridgend. There were significant pressures now sitting in this year's budget and she added that they were monitoring this all of the time and would come back with update reports on the budget position. With the current economic climate, things were changing on a daily basis so they were monitoring it very closely.

The Cabinet Member for Resources stated that the position had become very grave and he certainly had not seen a financial outlook like this previously. In all his years responding to austerity, it had not been as significant as the challenges they faced today.

The Deputy Leader seconded the report but was not happy about the budget position in Bridgend. She wanted to raise members awareness around the Social Services and Wellbeing Directorate, and in particular that all current projections were indicating that they were going to be overspent by £7.499 million by the financial year end. The overspends were in learning disabilities, day opportunities and older peoples residential care, mental health, home care equipment and adaptations learning disabilities. All of these had overspends already and part of that was down to the demand because they were led by service demand. The challenge ahead was significant and the authority needed to raise residents awareness to this. She was quite frightened about how they would be able to provide the service in the future and how they would protect the most vulnerable residents. All members irrespective of their political affiliation needed to raise this with their political groups because they needed to lobby Westminster with regard to the consequences.

The Leader added that this was a financial outlook that had been experienced by every single local authority. There were significant multi-million pound in year overspends and no easy options. He added they would try and deliver on those savings that they were committed to making and consider whatever options and tools that they had available to make further savings. As already said by the Cabinet Member for Resources, they had already made over £60 million of savings and cuts in previous years. The savings still to be made were not of the scale required to close the gap.   

RESOLVED:        Cabinet noted the projected revenue position for 2022-23.