Agenda item

Trafod Cynllun Ariannol Tymor Canolig 2020/21 i 2023/24.

With the aid of a power point presentation, the Service Director – Finance and Improvement Services introduced the Council’s ‘Medium Term Financial Plan 2020/21 to 2023/24’.

Members were asked to consider the Council’s ‘Medium Term Financial Plan 2020/21 to 2023/24’, attached as Appendix A and were informed that the  Committee’s feedback would be used as a consultee of the Council’s 2021/22 Budget Consultation process.

The Service Director – Finance and Improvement Services covered the following areas:

·       The Council‘s 2020/21 budget and financial position; and,

·       An overview of the Council’s updated MTFP (2020/21 – 2023/24)

Following the overview, Members were provided with the opportunity to ask questions.

Councillor Cullwick referred Members to page 50 of the report and sought clarification between the figures of £11,133M in relation to forecasted inescapable budget pressures and table 10 which states £9.558M. The Service Director explained that the difference is that the figure of £11,133M includes the figure in respect of schools where as the £9.558M figure does not include school inescapable budget pressures. The Service Director assurd Members that it’s not Authority wide it is just where the schools inescapable pressure is shown in the presentation.

Discussions ensued and Councillor Fox raised a query in respect of Brexit and sought clarification on Council finances if we were to leave the EU without a deal. The Service Director informed Members that where the Council knows that there will be financial changes, these have been included as inescapable financial bids within the updated plan. The Service Director advised Members that there is going to be some element of risk, however, he assured Members that these have been built into the risk aspects. In terms of Brexit, the Service Director assured the Committee that the potential impacts of Brexit are monitored on a daily basis and that robust financial planning arrangements are in place.

A further query was raised by Councillor Thomas in respect of Storm Dennis and the flooding that occurred in February this year. Councillor Thomas sought clarification as to whether this would be fully funded by U.K Government or whether this cost needs to be factored into the Council’s financial planning projections. He also queried the use of the term “efficiency” and queried whether the Council could continue to provide the same quality of service. In respect of the flooding, the Service Director advised Members that there has been regular engagement with Welsh Government and that the Welsh Government have set out detailed terms and conditions around what expenditure is eligible and that the claims submitted to date by the Council have been in line with the eligibility criteria. As part of the Council’s budget monitoring arrangements, the Service Director advised that the are making contingency provisions on the basis that there may be a risk of some of the claims being disallowed and to ensure a prudent approach. However, it is unknown what will happen in the next Municipal Year, particularly in terms of COVID etc and that dialogue will be continuing with Welsh Government in terms of future funding. In respect of the query in relation to efficiency savings, the Service Director advised the Committee that it is getting harder to identify those savings in costs which are not having any frontline impact. The Service Director advised Members that the COVID-19 pandemic has allowed the Council to look at significant saving opportunities i.e cost of staff travel etc, and that the Council is committed to doing as much as possible to protect frontline services. Councillor Thomas thanked the Service Director for providing a detailed response, however, he emphasized his previous point that CPI is not an effective measuring tool.

Discussions continued and Councillor Bradwick sought information in respect of the population changes per County throughout Wales and emphasized that this could potentially effect the Council’s budget setting process. The Service Director advised that there will be population changes, however, for RCT whilst there will be some changes they will not be significant.

Mr Fish, The Voting Parent/Governor Representative, raised a query in respect of the pressures on Children and Adult Services. Mr Fish sought clarification in the difference in figures between the Quarter 1 and Quarter 2 figures of sought clarification as to whether it was £2.1M in Quarter 1 and an additional £1.8 in Quarter 2. Furthermore, Mr Fish queried when the additional funding from Welsh Government would be filtered down into the individual school budgets and whether additional resources would be available to cover agency staff that are needed to cover teachers/support staff in schools who are required to self-isolate. In respect of the figures in Quarter 1 and Quarter 2, the Service Director advised that it is an improving position and that there has been a reduction in the forecasted overspend of £1.1M. In terms of Welsh Government funding and school budgets, the Service Director advised Members that the claim process takes a number of days and that there is communication between Welsh Government and Local Government in terms of clarify queries. Members were advised that after 2-3 weeks, it is confirmed what payment is available and Welsh Government start to make the payments. The Service Director advised that there is usually a 4-8 week delay in respect of payments coming in to the Authority. The Service Director informed the Committee that he would speak to the Education department to seek clarity as to when the payments will be filtered down to individual school and will feedback to Committee in due course. In respect of an Authority wide approach to the issue, the Service Director advised Members that he would speak to the procurement department to see if there is more of an Auhority wide approach that could be rolled out.  

Following discussion, Members RESOLVED to:

1.      To acknowledge the information contained within the Council’s ‘Medium Term Financial Plan 2020/21 to 2023/24’; and,

2.     To agree that the Committee’s feedback would be used

 as a consultee in the Council’s 2021/22 Budget Consultation process.