Issue - meetings

Consideration was given to report of the Chief Officer Resources.

The Chief Officer Resources presented the report which detailed the forecast financial outturn position across all portfolios for the financial year 2020/2021 (as at 30th June 2020); the forecast outturn for Fees & Charges; and progress on the achievement of the Bridging the Gap Projects for 2020/2021.

The Officer said the overall forecast outturn as at June 2020 was an adverse variance of £3.185m, before the application of Welsh Government Hardship and Furlough funding forecast at £1.98m, which reduced the forecast adverse variance to £1.2m.  The table at section 5.1.2 of the report detailed the forecast overall financial position across all portfolios at 30th June 2020, and before the inclusion of Covid-19 related expenditure.

Following the submission of the WLGA Survey on Loss of Income, four areas have been identified where there was a consistent loss of income across all Welsh Authorities.  These included parking, waste, school catering and cleaning and cultural services.  The Chief Officer confirmed that Welsh Government had considered claims from LA’s for loss of income for Quarter 1 relating to tranche 1, i.e. civil parking enforcement, grounds maintenance, school catering, waste disposal and cultural services) and the Council had received a total sum of £973,000.  As a result, £613,000 of lost income had been re-instated in the portfolio forecasts.

The Officer reported that in recent days, an additional £151k had been received from Welsh Government as part of tranche 2 of the Quarter 1 income loss claim.  Taking into account the Hardship Funding, Furlough income and the initial claim for lost income, the net impact on the Council’s Revenue Budget was a forecast adverse variance of £1.2m.  The Officer reported that 50% of the forecast adverse variance related to the increased caseload around the Council Tax Reduction Scheme which was currently forecasting an adverse variance of £0.6m.  Welsh Government were also considering the financial impact of this across Wales.

The Officer concluded that action plans to address cost pressures were attached at Appendix 4. However, she pointed out that many of the cost pressures would reduce with the application of further tranches of funding for loss of income (from chargeable services) and potential WG Hardship funding for Council Tax Reduction Support.

A Member referred to the Transformation Fund and asked how much money had been committed to the Festival Park project.

In response the Officer confirmed that £30k had been agreed.

The Member said given the fact that Welsh Government had provided a Hardship Fund, he expressed concern that as a grant funded organisation, the Council had received Furlough Funding when there were small businesses struggling in the Borough and people losing their jobs. 

He also said the £460k uncommitted Transformation Fund should be used to address any cost pressures resulting from the pandemic, and whilst the Council pays for the Festival Park Business Case, he was disappointed that earmarked reserves had been utilised for some consultancy fees.  However, he said the fact that the Council’s reserves  ...  view the full minutes text for item 6