Issue - meetings

Consideration was given to the report of the Chief Officer Resources.

The Chief Officer Resources outlined the key points of the report and advised that although the reserves were in line with targets set by the Authority it was critical that Council ensure an appropriate level of reserves to support its financial sustainability. In comparison to other Welsh Authorities, Blaenau Gwent still had one of the lowest levels of general and earmarked reserves.

The Leader noted the appropriate level of reserves and advised that the Authority still had some way to go in comparison with the overwhelming majority of local authorities throughout Wales. It was important that there was that additional financial resilience behind the Authority as there would be added pressures on Local Government in the months and years ahead. The Leader reiterated that the stance that this Authority take financially at budget setting times was the correct one as it was about the long term benefit of the Council.

RESOLVED that the report be accepted and

·        the forecast use of general and earmarked reserves for 2020/2021 be considered;

·        consideration be given to the impact of the £0.552m favourable variance for 2020/2021 would have on the budgeted contribution to the General Reserve;

·        the forecast increase of the General Reserve in 2020/2021 to £7.151m, being 5.28% of net revenue expenditure (above the 4% target level) be noted; and

·        challenge to budget overspends and implement appropriate service Action Plans, be continued where required.

Maintenance of general reserves at an adequate level is crucial to the Council being able to meet future liabilities arising from risks for which specific provision has not been made.