Issue - meetings

The Executive Board considered the revenue budget monitoring report which provided the latest budgetary position as at 28^th February 2021, in respect of 2020/2021. The budget position recognised the substantial additional pressures that had been placed on the Authority in responding to the Covid19 pandemic and the support provided by Welsh Government

Overall, the monitoring report forecasted an end of year underspend of £1,980k on the Authority’s net revenue budget with an underspend at departmental level of £1,872k. 

The Executive Board noted that whilst reports earlier in the year, have indicated a significant overspend due to the impact of Covid-19, the current projected position had now significantly improved, with the additional Covid-19 related costs and lost income being largely refunded from the Welsh Government hardship scheme.

It was further noted that whilst  revenue budget underspends would be seen as favourable, the details outlined in the report illustrated that this continued to impact front line service delivery as well as the unavoidable reduction/suspension of some preventative services. This, along with any continued delays to the delivery of savings presented a significant risk to future years budgets.

Commentaries against specific budget variances where assumptions had been made where shown within Appendix A appended to the report.

Executive Board Members noted that the report stated that Council Tax collection remained an area of significant concern. Carmarthenshire experienced a marked reduction in payments during the first quarter, which it is unlikely to fully recover during the year. Whilst WG have provided financial support, allocated on an RSG formula basis, it was anticipated there would still be a shortfall overall. The increase in bad debt provision was now reflected within the forecast.

UNANIMOUSLY RESOLVED that:

11.1    The Budget Monitoring report be received, and consideration given to the budgetary position and appropriate corrective action.

11.2    Chief Officers and Heads of Service critically review options available to them to limit the forecasted overspend of budgets, whilst recognising the pressure Covid-19 has placed on the Authority’s overall budget.