Agenda item

The Committee considered the Revenue and Capital Budget Monitoring Reports relating to the 2016/17 financial year as at 31st August 2016 for the Education & Children Department. It was advised that this latest revenue budget forecast showed a significant overspend of £1,550,000 for the year end. The capital budget showed a forecasted net spend of £13,322,000 compared with a working net budget of £19,607,000 giving a £-6,285,000 variance. Members were advised that the capital variance would be slipped into future years, as the funding would be required to ensure that the various schemes were completed.

The following issues were raised during consideration of the report:

It was asked whether the current overspend would be written off through the use of reserves. The Group Accountant confirmed that this would be the case but in doing so, there would be an impact on future budgets. The Director of Education & Children reminded the Committee that until this year, departmental reserves had been utilised to manage financial volatility. However, these were fully utilised last year and yet the underlying pressures on services had not relented. One significant cost was out of the Authority’s control, namely school redundancies and early voluntary retirement arrangements.

Concern was expressed at the continued delay in progressing a new primary school for Ammanford and it was asked whether there was a pecking order as other projects appeared to have jumped the queue. It was also asked what role if any, the Ammanford Task Force had in the planning for a new school. The Director of Education & Children reminded the Committee that it had previously endorsed the Modernising Education Programme Biennial Review earlier that year and confirmed that whilst there was a priority list (Band A, B etc.), it was required to be flexible due to the demographic changes often experienced within the County. He confirmed that work on a new school for Ammanford had commenced over four years ago but since this time, the numbers of children in the town had increased significantly and there was now not enough funding to accommodate the changes to the overall project. Another complication was the lack of suitable land and although one piece of land had since been identified, a further £8m would be required to fund the project. He also reassured the Committee that the Modernising Education Programme Team was liaising closely with the Town’s Task Force on this matter.

In response to a query about the Carmarthen West Phase 1 project, the Director for Education & Children informed the Committee that this was linked to the large residential development on the western edge of Carmarthen. Due to the number of proposed houses, a new primary school would be required and initial projections were for a two form entry school for approximately 400 pupils. However, the current plan was to develop a school in two stages as flexibility was required in relation to the progress of the overall development. He confirmed that the funding referred to in the report was for the development / design stage of the school project.   

UNANIMOUSLY RESOLVED that the report be received.