Agenda item

The Committee considered the Revenue and Capital Budget Monitoring Report which provided an update on the latest budgetary position as at 31^st October 2023 in respect of services under the remit of the Place, Sustainability and Climate Change Scrutiny Committee.

The Cabinet Member for Resources, in presenting the report highlighted that the estimated net overspend was £1.957m, which included £700k due to the actual pay award being more than budgeted.  

The Highways and Transportation division forecasted an overspend of more than a million pounds for the year.  The main variances were £300k due to storm damage to highways, loss of income on Parking Services of £277k and a £908k overspend on School Transport.

The Waste and Environmental Services division forecasted an overspend of £664k which was due to a £775k pressure from the delivery of the interim phase of the waste strategy having increased costs as a result of contingency measures having to be put in place.  

It was reported that in delivering the proposed efficiencies for 2023/24 as provided in Appendix G to the report, it was envisaged to achieve efficiencies of £1.3m in 2023/24, which would be £318k below target.

The following questions/observations were raised on the report:-

·       Reference was made to the Waste Services within the Main Variances - Appendix B of the report.  Clarification was sought on the comment ‘Outturn includes draw-down from reserves’ in regard to the variation of £571k.  The Head of Financial Services explained that this was as a result of the transition of the waste collection method towards the kerbside collection.  Currently, additional vehicles were providing the kerbside glass collection resulting in temporary additional costs.  In order to manage costs, part of the costs were being met by a draw-down on departmental reserves.

·       A concern was raised regarding the impact of services should the vacant posts not be filled.  It was highlighted that whilst there were proposals to save money by way of not filling vacant posts coupled with the current recruitment freeze the report cites an underspend in connection with various staff vacancies including Noise Control as an example which is a Statutory Duty.  The Head of Financial Services explained that full funding for all posts were provided that was part of the Councils staffing structure however, in terms of leavers and maternity cover, the nature of the recruitment process, which varies in duration, creates a salary underspend which is then reflected in the budget monitoring report.  The Cabinet Member for Resources emphasised that the introduction of the recruitment freeze reflected the severity of the budget situation and that this was a measure taken to avoid actions such as redundancies.

·       Reference was made to Appendix D appended to the report – Department/Schemes main variances.  In response to a query raised regarding the comments attributed to variances ‘Slipped to future years’, the Head of Financial Services provided the Committee with assurances that the funding for capital budgets did not always align with the budget setting which took place on an annual basis and due to this it would often slip to the following year.

·       Clarification was sought regarding the comment ‘revenue and CCC contribution needed’ for the 11k variance attributed to Coastal Protection cited on Appendix D.  The Head of Place and Sustainability explained that 11k variance was to fund training within the area of coastal protection, however it was reported that this financial year additional £268k had been successfully secured from the Welsh Government which would offset the funding projection.

·       Reference was made to the Countryside Access under Highways and Transport section of Appendix G(ii) Savings on Target.  In regard to, the comment ‘discretionary clearance by Contractors were being ceased’, it was asked if suitable enforcement mechanisms were being put in place to ensure that landowners clear encroaching vegetation?  The Head of Environmental Infrastructure stated that enforcement notices would continue to be issued against landowners were necessary and any works that the Council carried out would be recovered from the landowner.

·       In respect of the Council’s Climate change objectives it was asked if extra revenue was being received from Welsh Government in order to help achieve the Council’s targets?  The Cabinet Member for Climate Change, Decarbonisation and Sustainability funding was being received to assist with the introduction of electric vehicles and the upgrading of building insulation/heating.  Confirmation was provided that further funding would be sought from a variety of sources which included UK and Welsh Government to achieve the net zero commitment that the Council had made.

·       In response to a query regarding the funds attributed to the Towy Cycle Path and the timeliness of the spend, the Director of Place and Infrastructure confirmed that funding profile had been extended and approved to March 2025.

·       Reference was made to Appendix G(iv) to the report – Parking Services.  The comment stated that ‘the services was showing a £375k overspend on the August budget monitoring report due to reduced footfall in town centres’.  The Cabinet Member for Resources stated that the retail sector and income from carparks continued to be severely impacted upon following the Covid pandemic where many people had turned to online shopping which had resulted in a dramatic reduction in the footfall within town centres.  It was reported that the 5% increase was less than the current inflation period of 6.7% and that it was cheaper to park in the Council owned carparks than privately owned.  In addition, it was reported that the Council’s carparks cost £600k p/a in tax and non-domestic rates which is paid to the Welsh Government.   Assurances were given that other measures were being explored to increase the footfall within town centres within Carmarthenshire.

RESOLVED that the Revenue and Capital Budget Monitoring Report 2023/24 be received.