Agenda item

Context:

• To highlight the context within which the Medium Term Financial Plan (MTFP) will be developed for 2018/19 to 2021/22.

• To agree the assumptions to be used to update the MTFP, and provide an early indication of the level of budget savings still to be found.

• To receive an update with the implications arising out of the provisional settlement announcement of Welsh Government.

• To consider the 2018/19 budget within the context of the four year Medium Term Financial Plan (MTFP) to be incorporated within the emergent Corporate Plan

• To receive detailed draft proposals on the budget savings required to meet the gap between available resources and need to spend in 2018/19.

Key Issues:

The Select Committee scrutinised the Children and Young People budget proposals, as outlined in the report, which related to the Children and Young People Directorate.

Member Scrutiny:

·         Central Government funding is a net 0.5% reduction.

·         Pay inflation - the likely pay award for next year is being agreed at 2%.

·         There will be a need to review the vacancy factor figure which is currently at 2%.

·         The Authority has historically had to pay significant sums of money to external foster care providers which has been difficult to budget for due to each child’s differing circumstances.  The Authority is therefore actively looking at all external placements to see if there is an internal provision that could be used, as long as it could be used successfully and ensuring the safeguarding and well-being of the individual child is maintained.

·         The matter of Federated schools has been discussed previously within the Authority and with head teachers recently.  There are currently 36 educational settings in Monmouthshire but in the future it is likely that there will be fewer than 36 head teachers across those schools. This will be a process of evolution whereby, as opportunities arise through natural turnover, the Authority will take advantage of these situations with a view to schools working more closely together.

·         In response to questions raised regarding appendices 1, 2 and 3 of the report, it was noted that:

-       The figures relating to the grants position as outlined in appendix 1 should be read in round millions and relate to the position for Wales.

-       N/A in appendix 1 refers to information not available, as yet.

-       Appendix 2 – Monmouthshire derives the lowest funding per head of population across Wales.  The settlement works by looking at indicative service levels across the 22 local authorities in Wales and applying a formula.  However, not all authorities provide services in the same way.  Welsh Government states that this formula has been agreed by the 22 authorities and it will be for the 22 authorities to agree to an alternative way of preparing the formula funding.

-       The funding flaw refers to Welsh Government and when it looks at those indicators it will then apply the formula comparing this year’s settlement with the previous year.  In trying to reduce the volatility Welsh Government has restricted the reduction to 0.5%.

·         With regard to the implementation of the Additional Learning Needs (ALN) Bill, this is currently being worked on at Welsh Government.

·         It is anticipated that the ‘not applicable’ (n/a) figures in the report will be available in due course and potentially before the end of December 2017.