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The decisions as the council's minutes record them. A plain-language summary follows once it has been written.
AGREED: that the Chairperson, on behalf of the Committee, writes to the Cabinet Member conveying the observations and recommendations of the Committee when discussing the way forward.
None received.
None received.
The minutes of the meeting held on 11 September 2024 were agreed as a correct record and signed by the Chairperson.
Decision as recorded
AGREED: that the Chairperson, on behalf of the Committee, writes to the Cabinet Member conveying the observations and recommendations of the Committee when discussing the way forward.
Members were advised that they would be receiving an update on the Council’s financial position at month 4 of the 2024/25 financial year and undertaking pre-decision scrutiny of a report to Cabinet next week. Given that Committee agreed in its work programming discussions that the Council’s Capital Programme would require close monitoring in this financial year, the Chairperson proposed that Committee consider the Revenue and Capital monitoring positions separately. For this item, the Chairperson welcomed Cllr Chris Weaver, Cabinet Member, Finance, Modernisation & Performance; Chris Lee, Corporate Director, Resources; Ian Allwood, Head of Finance and Anil Hirani, Capital Account Manager. Part 1 – Revenue Budget The Cabinet Member was invited to make an opening statement after which Members were provided with a presentation from Officers. The Chairperson invited questions and comments from Members. Members asked how realistic the 2024/25 budget established in March 2024 was, particularly in light of the £8.865m overspend reported in month 4 and the expectation that only 70% of planned savings would be achieved. Members were informed that other authorities are encountering similar issues at this point in the year, the Council has faced greater challenges in the past, and while the total savings may not be fully realised, they will be deferred. Members were advised that the Council should attain a balanced budget by the end of 2024/25. Members noted that half of the overspend reported at month 4 was due to the Education sector, and that although this overspend relates to the central education budget, it was noted that next year’s budget would need to focus more closely on School Transport and Additional Learning Needs (ALN). Members discussed cleaning contracts in schools and were informed that individual schools are discussing this issue and there may an opportunity for small savings to be achieved. Members asked that a conversation to discuss the benefits of contributing to the Central South Consortium (CSC) with the Cabinet Member for Education take place, particularly as neither schools nor education authorities seem to find value in Consortium membership. Members considered that withdrawal could offer potential budget savings. Members requested more detailed information regarding the achievability of the Child Friendly City savings. Members were advised that grant funding was a possibility, however the timing of the report was a concern. Members discussed the overspend in Children’s Services, recognising the significant volatility in price increases that this budget has faced. Members agreed with the assessment that a national solution is necessary, and Members considered that the Welsh Government should address the budget shortfalls in Children’s Services. Members considered that it may be time to re-evaluate how the Council sets the budget for this service. Despite several major realignments in previous years, inflation and rising demand have significantly influenced budget outcomes. Members acknowledged the extensive use of data in budget-setting but noted that much of this information is historical. Members appreciated the commitment given to learning from past experiences when assessing the robustness of the 2025/26 budget. The Committee welcomed the engagement of Members and officers with a broader range of partners to improve services for children with complex needs. Members were informed about the growth in partnership working in this area and were reassured that the Council is implementing a strategic policy of Closer to Home regarding Children’s Services. Members considered that some lessons could be learned from Adult Services as that service area was historically overspent and is now balanced. Members noted however that it is a different service, with different challenges. Members requested more information regarding the reasons for the Council’s overspend in the recycling budget at this stage in the year. Members were advised that this information was not to hand and would be provided by the service area following the meeting. Members noted that, despite an increase in revenue from the Castle, there was £1 million in lost income from events at City Hall due to its closure for maintenance.They considered there could be an opportunity for a full launch upon the venue’s reopening to maximise business potential. The Committee noted that a clearer picture of Council Tax collection rates would be available by month nine. This would also be a suitable time to evaluate whether the collection targets are sufficiently ambitious. Members were informed that compared to other Welsh Local Authorities, Cardiff is in the top quarter in terms of collection rates. Part 2 - Capital Monitoring Members were provided with a presentation from Officers. The Chairperson invited questions and comments from Members. Members discussed the Council’s Capital Programme and considered it to be a vital driver of regional growth, referring to examples such as new school buildings and an increase in green jobs. Members considered that the Capital Programme should be more visible to the public. Members referred to paragraph 29 of the Cabinet report concerning the Capital Investment Programme, specifically that capital receipts are earmarked to fund other projects. Members were concerned about how this information is reflected in the Capital monitoring report, and they requested greater transparency around capital receipts. Members sought greater transparency regarding Section 106 funds in the budget monitoring report, as they felt that this would benefit ward members. Members sought assurance that appropriate financial governance is established for these funds and considered that more detail could be added to paragraph 27 of the report. Officers agreed to consider this request but wished to highlight the capacity of the Capital finance team. Members also sought clarification on where the interest accrued on Section 106 funds is held. Members sought clarity on the Finance service’s role concerning Section 106 contributions and reassurance that adequate financial processes and protocols are in place. Members noted comments made regarding the need to upgrade the Council’s financial systems and software within the next 2-3 years. Members urged that the Committee be given an opportunity to engage with any proposed changes. Members referred to the complexity of monitoring the Capital Programme since projects often extend over five years and questioned whether it is appropriate to reference slippage on an annual basis within this five-year cycle. AGREED: that the Chairperson, on behalf of the Committee, writes to the Cabinet Member conveying the observations and recommendations of the Committee when discussing the way forward.
None received.
The Chairperson advised that Committee had been asked to hold a special additional meeting to consider the Core Office Report at 4.30pm on Tuesday 22 October 2024. Members were advised that this is an important report, and the Chairperson was keen to ensure appropriate attendance at the meeting. The Chairperson further advised that he would be inviting members of the Economy & Culture and Environment Scrutiny Committees given that the report has implications for those committees whilst firmly sitting within Policy Review & Performance Committee’s Terms of Reference. Therefore, the next meeting is 4.30pm on 22nd October 2024, followed by the November meeting on Wednesday 13 November 2024.
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