MONITRO REFENIW A CHYFALAF 2021/22 DATGANIAD RHAGOLWG ALLDRO - MIS 2
Is-adrannau/Wardiau a Effeithir: Pob un
Pwrpas:Yn cynnig rhagolwg wedi’i ddiweddaru i Aelodau o’r sefyllfa alldro refeniw a chyfalaf ar gyfer y flwyddyn ariannol bresennol.
Awduron: Peter Davies, Prif Swyddog ar gyfer Adnoddau
Jonathan Davies, Pennaeth Cynorthwyol Cyllid Dros Dro (Dirprwy Swyddog S151)
Manylion cyswllt: email@example.com
· That Cabinet recognises an overall net revenue forecast deficit at month 2 of £9.02m, which can be attributed to forecast deficit of £6.48m that is directly associated with the extraordinary financial pressures attached to Covid-19, with a further £2.53m relating to the pressures on the Council’s core service delivery.
· That the forecast deficit on core service delivery of £2.53m is managed through an immediate budget recovery plan recognising the risk that targeted and planned cost reductions will be challenging in the current operating environment and given that the Council will as always look to minimise impact on service delivery.
· That Cabinet can be reasonably assured based on continued dialogue with Welsh Government and the funding received since the outbreak of the pandemic, that all Covid-19 associated cost pressures and income losses eligible to be met by the Welsh Government Covid-19 Hardship fund will be funded to the end of September 2021.
· That Cabinet note that there remains significant Covid-19 related cost pressures and income losses forecast after the end of September 2021 of approximately £2.5m which presently have no funding commitment from Welsh Government. The Council prudently set aside reserve funding at the end of 2019/20 and 2020/21 totalling £2.6m for specific Covid-19 related pressures which were yet to materialise and in the event that funding commitments from Welsh Government fall short of meeting the additional expenditure and income losses incurred. Given the Councils comparatively low level of reserve cover, and the financial challenges over the medium term and beyond, recourse to this funding should be seen as an absolute last resort after exhausting all other alternative possibilities.
· Whilst the Council is grateful for the funding commitments made to date by Welsh Government through the Covid-19 Hardship fund to the end of September 2021, Cabinet will look to make strong representations to Welsh Government for further clarity on funding for the ongoing pressures post September both in the form of continuing to respond to the direct impact of the pandemic but just as importantly, the wider and longer lasting indirect impact of the pandemic on Council services, particularly where this is now becoming evident in the areas of Homelessness, Children’s services, Adult social care and Children’s additional learning needs.
· That Cabinet recognise the ongoing risk of the awaited outcome of pay negotiations for both teaching and non-teaching staff and that this will present a further pressure if pay awards are over and above the 1% budgeted for. Current indications are that we will see at the very least a 1.75% increase in pay for teachers with effect from September 2021, and a full year effect of at least a 1.5% increase in non-teaching staff. Welsh Government have been clear that no compensating funding is anticipated and given that the Minister confirmed via the final settlement that this already took into account any subsequent pay award.
· Cabinet recognises the extraordinary nature of the current Council operating environment as a result of the pandemic and accepts that it will be some time until the wider and lasting impact on service delivery fully establishes itself.
· That Members note the forecast 95% delivery of the budgeted mandated savings as detailed in appendix 3 and as agreed by full Council previously and the implicit remedial action/savings included in the financial outturn to compensate for circa 5% savings (£229k) reported as delayed or unachievable by service managers.
· Cabinet notes the extent of forecast movements in Schools reserve usage contained in appendix 1 which is informed and driven by the school investment plans that were supported by the significant and unprecedented late grant support provided by Welsh Government to schools at the end of 2020/21.
· Cabinet considers the forecast capital outturn spend of £79.2m as outlined in appendix 1, noting the difficulties in forecasting capital expenditure plans so early in the financial year and the probability that slippage will materialise as the year progresses due to the ongoing restrictions and impact in relation to Covid-19.
· That Cabinet approve the Capital budget revisions as listed in appendix 4 to this report resulting from the notification of external capital grant awards to the value of £3.58m.
- 20210728 Cabinet - Revenue Capital outturn forecast month 2 - Covering report (final v2), eitem 3a PDF 677 KB
- 20210728 Cabinet - Revenue Capital outturn forecast month 2 - Appendix 1 - Detailed outturn report, eitem 3a PDF 981 KB
- 20210728 Cabinet - Revenue Capital outturn forecast month 2 - Appendix 2 - Service variance analysis, eitem 3a PDF 507 KB
- 20210728 Cabinet - Revenue Capital outturn forecast month 2 - Appendix 3 - Mandated savings matrix, eitem 3a PDF 397 KB
- 20210728 Cabinet - Revenue Capital outturn forecast month 2 - Appendix 4 - Capital budget revisions, eitem 3a PDF 250 KB