Agenda and decisions

County Councillor Sara Burch.

None received.

Wards Affected: All

Purpose: To inform Cabinet of UK Governments one-year extension to the UK Shared Prosperity Fund (UKSPF) and seek approval for the granting of investment from UKSPF for 2025/26 to projects listed in Appendix one of this report

Author:  Will McLean, Chief Officer Learning, Skills and Economy

  Hannah Jones, Head of Economy, Employment and Skills

Contact Details:  willmclean@monmouthshire.gov.uk         

    hannahjones@monmouthshire.gov.uk

That Cabinet:

Approves the recommendations of the Monmouthshire People & Place partnership in relation to the investment of funds from the local authority’s allocation for 2025/26.

Approves the draft local investment plan and projects contained within.

Authorises the commencement of activity as outlined in the draft local investment plan from 1st April 2025, ahead of the regional lead local authority (Rhondda Cynon Taf CBC) receiving an updated Memorandum of Understanding from UK Government.

Division/Wards Affected: N/A

Purpose: To provide Cabinet with an update of the progress against the Councils revenue budget for the 2024/25 financial year.

Author: Jonathan Davies, Head of Finance

Contact Details: jonathandavies@monmouthshire.gov.uk

That Cabinet note the forecast revenue budget deficit of £1,593,000 (0.7% of total budget) which is a significant improvement of £2,760,000 since the previous update.

That Cabinet requires budget recovery action to continue for the remainder of the year to ensure all services to bear down on avoidable cost and identify further income opportunities wherever possible in order to bring the budget back to a balanced position.

That Cabinet note a forecast 78.3% delivery of the £10,940,000 budgeted service savings required for the year. This results in a shortfall in savings of £2,376,000 that is included in the above deficit.

That Cabinet note that funding to meet the increase in the rate of the employer’s contribution to the teacher’s pension scheme has been fully received since the previous financial update, and that this no longer represents a budget risk.

That Cabinet note the budgetary risks that are inbuilt into the forecast, namely.

Ø  The volatility of demand for high-cost services, particularly within Adults & Children’s Social Care and in Additional learning needs;

Ø  The potential impact upon the Council’s financial resilience from the forecast increase in the cumulative schools reserves deficit that is being carried on the Council’s balance sheet;

Ø  The risk of further non-delivery of the £10,940,000 of budgeted savings targets;

Ø  The trend of reducing debt recovery, particularly within Council tax where there is a significant increase in the number of discounts and exemptions awarded, and a slowing down in collection rates;

Ø  The limited reserve cover available to the Council.

That Cabinet note the forecast increase in the deficit on cumulative schools reserves as outlined in Appendix 3 of the report of £5,240,000. This would result in school balances ending the financial year in a deficit of £6,144,000, with twenty-four (69%) of thirty-five schools forecast to be in a deficit balance.

That Cabinet note that schools which are forecasting to end the 2024/25 financial year in a deficit balance have brought forward recovery plans outlining the proposed actions to address their budget shortfalls, however the current budget circumstances indicate that it will take schools a considerable amount of time to fully recover deficit balances.

That Cabinet note a forecast Capital budget underspend of £243,000, alongside an indication of slippage in capital schemes of £13,199,000.