Agenda item

Consideration was given to report of the Chief Officer Resources.

The Chief Officer Resources advised that the report outlined the Forecast financial position to the end of March 2021 across all portfolios, forecast outturn for Fees & Charges and Progress on the Bridging the Gap Projects for 2020/2021.

The Chief Officer Resources noted that the overall forecast outturn as at December 2020 was an adverse variance of £4.719m. However, following  the application of Welsh Government Hardship funding the forecast was a favourable variance of £0.552m which was a much improved position compared to the forecast in September 2020 which reported an adverse variance of £0.248m after the hardship funding.

The Chief Officer Resources further spoke to the report and provided a detailed overview of the forecast overall financial position across all portfolios as at 31^st December, 2020 and outlined the main adverse variances. The Chief Officer noted that Action Plans to address the cost pressures were detailed in Appendix 4.

At this juncture the Chair invited questions/comments from the Committee.

A Member referred to overspending in certain budget areas which he felt was no fault of the department or staff but was around the decision making of Members. The Member noted the Environment Portfolio position which was in deficit with little or no attempt being made to address the budget pressure. There appeared to be no effort to counteract these cost pressures and the Member was of the opinion that the Authority had a duty of care to ensure budget are kept in a favourable position in light of the hardship monies being received from Welsh Government. The Member felt that the Executive Members responsible for the Environment Portfolio and the Regeneration Portfolio should be tasked to give consideration to these ongoing cost pressures.

The Member further noted the favourable variance being reported for the second HWRC in Roseheyworth and it was confirmed by the Corporate Director Regeneration and Community Services that the favourable variance was due to the delay in opening as well as income being forecasted for diverted black bag waste.

The Member advised that he did not feel that an Authority of this size needed a second HWRC and he had been critical of the decision taken. The Member was of the opinion that Members expected too much and felt that the report highlighted the amount of work needed to balance the budget. The Member noted that some matters were seasonal, however it was also down to the decision making in these areas and the responsible Executive Members should look how the reductions could be achieved in order to reduce these cost pressures.

The Chair noted that the decision for a second HWRC site in Roseheyworth had been a Council decision and the Chair stated that he welcomed the decision as there was a need for a second HWRC.

Another Member noted the comments made in relation to overspends in portfolios and asked if the relevant amount of monies was being allocated to budgets to prevent overspends.

The Corporate Director Regeneration and Community Services advised that some of the Portfolio spend was demand led, therefore it was hard to align the budget. The Corporate Director added that income for recycling fluctuated and reported that during the pandemic, the prices on plastic reduced which impacted on the budget. A number of issues were also dependant on community behaviour, however the budget was set to the best of our assumptions.

The Corporate Director further noted that the previous year’s budget had been close to balancing, however this year had been challenging and a great deal of black bag waste had been collected where costs were incurred for disposal of the waste.

The Chief Officer Resources added that as part of the 2021/22 budget setting process £464,000 additional budget was allocated to address cost pressures in the Environment Portfolio. This would assist in achieving a balanced budget.

In response to a question raised in relation to the decrease in recyclate income which had impacted on the budget, the Corporate Director Regeneration and Community Services confirmed that a slight increase had been reported since September which would reflect on the end of year balance. 

A Member referred to the costs incurred for ground works at Festival Park and asked if there continued to be a cost in this area as the company had gone into administration, laid off staff, therefore the Member assumed that the Council should no longer be paying for ground works and asked would there be a refund.

The Corporate Director Regeneration and Community Services advised that the monies paid were part of a reverse lease arrangement between the Council and owners of site. However, the point made was valid and the Council should not be paying for things it had not received and this would be taken up with the current owners.

A Member asked the reason for Breakfast Clubs being reported under Environment Portfolio and not the Education Portfolio. The Corporate Director Regeneration and Community Services advised that this service had been transferred to Catering to ensure focus remained on Education matters by the Department. The Corporate Director Education added that resources received by Welsh Government were provided to the Catering team who carried out this activity on behalf of Education.

In response to monies received for the highway works on the Cwm to Aberbeeg Road, the Corporate Director Regeneration and Community Services confirmed that funding was received via the flood fund. The Chief Officer Resources recalled that Members agreed that capital investment allocated for the Big Arch be used to undertake highways works on Cwm to Aberbeeg Road. These monies had now been reinstated as flood funding which had been received, therefore no impact on the budgets detailed in this report, however it would be apparent in the capital report although monies are now back in place.

A Member asked the impact the pandemic had on Council Tax collections. The Chief Officer Resources advised that it had been anticipated that there would be a significant reduction in collection rates due to the challenges faced by Covid-19 and collection rates were currently 92-93%. The Chief Officer noted that the estimated collections had been predicted at 95% and the Member felt that this was good news in the current circumstances.

In response to a question raised in relation to the cost of clearing flytipping, the Corporate Director Regeneration and Community Services suggested a briefing note be provided.

It was AGREED that a briefing note be presented to the next Committee for all Members information.

The Member referred to Appendix 3 which identified fixed penalty notices issued and suggested that flytipping notices also be included. The Corporate Director Regeneration and Community Services agreed to look into this information being included and other fixed penalty notices in general.

A Member noted the additional costs of £111,000 in the Environment Portfolio and asked if this would be continued into the next financial year. The Chief Officer Resources confirmed that this was a one off cost pressure in relation to changes in staff pay profiles from
4 weekly to monthly and would not have an impact on next year’s budgets.

A Member welcomed the reopening of schools and asked if the hardship grant covered additional home to school transport to ensure the Authority adhered to Covid-19 social distancing restrictions.

The Corporate Director Education advised that the appropriate risk assessments had been carried out and discussions were ongoing in terms of transport provision. The Corporate Director noted that all primary school pupils were back in school and only specific Secondary year group pupils at present.

However, there would be a possible phased to full return for Secondary School pupils after the Easter Holidays and any costs related to the need for increased transport provision would be considered for the Hardship Fund as it would be Covid-19 related.

The Member asked if the Authority had access to additional buses and the Corporate Director reiterated that these discussions are ongoing with Stagecoach if additional buses were required. The Corporate Director Regeneration and Community Services added that the Authority was very conscious to ensure children are safe and advised that Covid-19 Wardens would be placed on buses to ensure everyone was following the guidelines.

A Member referred to a piece of work she had undertaken within her Ward in relation to the costs of wheeled bins and recycling equipment which had been stolen and needed to be replaced. The costs for Blaina Ward was in the region of £25,000 and the Member advised that she had been informed that costs incurred for the Brynmawr and Ebbw Vale North Ward was higher. The Member felt that the reintroduction of rear lane collections would alleviate a great deal of thefts as the bins could be kept safely in resident’s gardens.

The Member thereupon asked what are the Council doing to address these thefts to reduce costs incurred. The Corporate Director Regeneration and Community Services concurred that this matter was a great challenge and the Department had tried to understand the need for demand. It was important that the Council work with the Community to identify hot spots to address these issues.

The Member reiterated that she was aware of the challenges and had been part of a multi-agency group within her Ward to address these issues, however the Council had not done any work in an attempt to resolve this matter and the Member requested details on the work being taken forward by the Waste Team to mitigate this situation.

Another Member noted the legal fees incurred in the Social Services Portfolio and asked for an update in terms of SLAs with other authorities.

The Corporate Director Social Services advised that this matter was due to be considered at the next Social Services Scrutiny Committee. The Corporate Director added that it had been difficult to pursue agreements due to the pandemic, however as restrictions eased it was hoped that alternatives could be looked at to reduce these costs.

A Member proposed that a report be presented to the Community Services Scrutiny Committee which outlined the costs being incurred by the Council to replace refuse and recycling bins which had been stolen. Also, to include costs of the clean up after flytipping. The Member felt it was important that these matters be considered to identify ways to reduce these costs and discuss good practice.

This course of action was AGREED.

The Committee AGREED, subject to the foregoing that the report and provided the appropriate challenge to the financial outcomes in the report.