Agenda item

Cabinet Member Ben Callard introduced the report and answered the members’ questions with Jonathan Davies, Deb Hill-Howells, Cabinet Member Ian Chandler, Jane Rodgers and Will McLean.

• Can the savings made through vacancies in civic enforcement be offset against the income that those officers would have generated? Officers clarified that the savings listed for Civic Enforcement officers are made through vacancies and do take into account the potential impact on income generated from fines. The service has considered the overall impact, including the enforcement action and income generation, when holding these vacancies.

• What is the cause of the overspend in waste and grounds maintenance, particularly related to recyclable prices and workplace recycling regulations, and how can we encourage a higher recycling rate in the county? Members were advised that the overspend is due to volatility in recyclable prices and the impact of new workplace recycling regulations. These regulations have led to reduced volumes of recyclable materials collected from businesses, as some businesses have found alternative waste disposal options. This has affected the overall recycling rates and contributed to the overspend. The council is reviewing the costs associated with trade waste and recyclable materials and are in the process of going through a procurement exercise to address the volatility in recyclable prices and improve the financial situation for the next financial year. Additionally, efforts are being made to encourage businesses to participate in recycling programs and comply with the new regulations to maintain high recycling rates.

• How confident is the council in addressing the budget shortfall of £1.593m, that includes a £2.376 million shortfall in meeting savings targets relating to only 78% of the £10.9 million of savings forecast to be achieved? The Cabinet Member advised that the council is confident in addressing the shortfall by continuing to work with services to drive through the remaining savings towards the end of the year and maintaining a focus on budget control to ensure that costs are managed effectively, and the remaining gap is closed.

• What are the recovery plans for schools ending the financial year in deficit, given that 69% of the schools (24 out of 35) are forecasted to end the financial year in a deficit? The Chief Officer for Children and Young People responded that the council is working with schools to support them in developing effective recovery plans, which includes providing guidance and assistance in managing their budgets, exploring opportunities for efficiency savings, and ensuring that schools have the necessary resources to address their financial challenges.

• Has there been a shift in children’s social care, with providers exiting the market, reducing the number of providers offering services and affecting costs? The Chief Officer for Social Care and Health agreed there has been a shift, which has led to increased costs due to reduced competition. The market is currently volatile, with some providers charging higher prices during this transition period, so the council is working to increase in-house care provision to mitigate these costs.

• Are discussions taking place across the region with other local authorities to take collective action to resolve the issue of continuing healthcare (CHC) cost shunting from the NHS to local authorities? The Committee was advised that conversations are being held, but that progress has been slow, and the process remains challenging, with Councils seeking ways to resolve the issue collectively.

• How is the £400k shortfall in housing and homelessness savings targets being addressed, and what is the impact of grant funding on the shortfall? The shortfall has been addressed through grant funding from Welsh Government which has significantly mitigated the situation and that the council is continuing to work on reducing high-cost bed and breakfast placements by utilizing more cost-effective temporary accommodation solutions. Whilst this is a positive outcome, the timely delivery of savings plans is important and in this instance could have led to grant funding being redirected to other priorities.

• How is the council tackling the growing trend of increased discounts, exemptions, and slower tax collection, and has there been an impact on the council’s income? The Committee was advised that the level of discounts and exemptions is increasing, moving towards an all-Wales average and that the council has been raising awareness about available discounts and exemptions to ensure eligible residents take advantage of them. Whilst the collection rate remains robust, the process is taking longer, and the council is working closely with the shared service with Torfaen to offer support to those experiencing difficulty in paying.

• What is the council doing to build up its reserves, and how can it work with the Welsh Government to ensure Monmouthshire is not in the position of having the least reserves? The Cabinet Member assured that the council is aware of its low level of reserves and is taking steps to increase financial resilience, which includes the council tax premium to create resilience and investment in housing issues. He advised that increasing reserve cover depends on the funding settlement and the ability to generate a budget surplus and that the council is working closely with Welsh Government to address this issue.

• Why are the specific forecast deficits for King Henry School and Chepstow School so much higher than for Monmouth Comprehensive? The Chief Officer for Children and Young People confirmed that the higher forecast deficits for King Henry School and Chepstow School are due to specific challenges, including transitional costs for King Henry and other unique issues for Chepstow and that Monmouth Comprehensive does not face the same level of challenges. He explained that the three schools have broadly similar in-year overspend positions, all in excess of half a million pounds. Monmouth Comprehensive had secured a higher level of brought forward balance, which has impacted their carried forward deficit.Chepstow School has been working closely with the council to improve their long-term deficit position, showing recent improvements. King Henry School has faced significant cost pressures due to the transition to a through school and delayed move into the new building, along with some income streams not materialising as expected. The council is working with these schools to ensure a recovery that does not immediately and detrimentally affect academic or support provision.

• How does the deficit in schools' reserves affect the council's balance sheet, considering the uncertain time frame for recovery? The explanation given was that the deficit in schools' reserves moves to the council's balance sheet, impacting the overall financial position and resilience. The recovery plans for schools are long-term, and therefore deficits may grow before they start to reduce.

• The 3 core services of the council are forecast to overspend at year-end by £5.15 million. Last quarter the forecast was £5.3 million. This is marginal improvement, and quite a different picture from the overall council forecast overspend, as the 3 core services overspend continues to be offset by balancing finance and treasury measures. The overspend in those core services will now carry forward to next year – surely this is not sustainable? The Cabinet Member responded that it isn’t a negative to find ways to balance expenditure across the departments and that the council's budget proposals for next year include ongoing changes aimed at making services, particularly in social care, more financially sustainable. He explained that despite the forecasted overspend in the three core services, the council has faced significant budget gaps of over £20 million annually for the past three years, which is a substantial challenge and that he was proud of the council's efforts to address the financial pressures. The council is working to manage costs efficiently by addressing demand within services, implementing preventative measures, and ensuring financial discipline, the focus being on maintaining service quality while managing financial pressures. He also advised that the council had benefited from an additional £1.3 million Welsh Government grant.  

Chair’s Summary:

The Chair thanked the officers and Cabinet Member for the report and their responses to the committee’s questions and said that the committee wished to recognise the work undertaken across the organisation to deliver services in a challenging financial context.