The Director of Finance will present (Document “Z”) that provides Members with an update on the forecast year-end financial position of the Council for 2022-23.

It outlines the revenue and capital budgets and the year-end financial position based on information at the end of September 2022. It states the Council’s current balances and reserves and school balances. 

Recommended -

That the Executive

(1)       Note the contents of this report and the actions taken to manage the issues highlighted.

(2)       Approve the change to the funding of the Markets and Development of Equity Loans capital schemes, £0.4m and £0.644m annual allocation, from revenue contributions to corporate borrowing.

(3)       Approve the following capital expenditure schemes as outlined in section 12.3 and 12.4.

·         £0.08m to install additional fencing at West Holme Fields, Ilkley subject to final PAG approval. This will be funded by invest to save borrowing.

·         £1m for schemes to be funded by corporate borrowing general contingency budgets rather than revenue contributions.

·         £5.384m for the completion of design and development works for the Transforming Cities Project. The scheme is to be funded by short term borrowing prior to reimbursement from WYCA. Regular updates are required to PAG, including details on spend to date, WYCA funding approvals and grant income received.

·         £2.5m for the continuation of the Energy Efficiency Capital Programme. This scheme is already included in Reserve Schemes and will be funded by corporate borrowing.

 (Andrew Cross – 07870 386523)

The Director of Finance presented (Document “Z”) that provided Members with an update on the forecast year-end financial position of the Council for 2022-23.

It outlined the revenue and capital budgets and the year-end financial position based on information at the end of September 2022. It stated the Council’s current balances and reserves and school balances. 

The Head of Finance introduced and highlighted the main points of the report.

The Leader noted that the national cost of living crisis was having an impact on all Council budgets nationally.  The Local Government Association had written to the previous and current Prime Minister regarding the £3 billion funding gap in all Councils in the UK which was concerning given that the Chancellor had noted that cuts in public sector funding were being considered.  She stressed that Council services kept communities together by providing good services and value for money and if that investment was not forthcoming this would put more pressure on acute services such as the NHS and the Police.  She noted that the deficit had been reduced by approximately £10m since the Q1 report and that the Chief Executive and CMT and politicians were working to reduce it further, but that this was a time of great certainty for Local Government finance.

A member of the Opposition Group noted two significant figures, the increase in children in external residential placements which cost on average £250,000 for each placement and that there were 174 agency social workers costing £2m per month.  He noted the action that had been taken to employ more social worker from overseas which would reduce agency costs.  He added that the Children’s Trust would be setting its own budget for the 2023 financial year and stressed the seriousness of the Council’s current financial position.  He questioned whether the significant use of reserves in one year was sustainable while noting that most other authorities in the same position.

The Leader responded that there was an increase in external residential placements but noted that if a child needed to be looked after the authority had to act regardless of finance.  She hoped that the MacAlister review would bring about changes to restrictions that Local Authorities were working with regarding the cost of residential care and agency workers.  She noted that all other Councils she was aware of were drawing down reserves and that the Government needed to support local authorities.

The Children and Families Portfolio Holder referred to the plans to employ social workers from overseas and noted that they would need time to settle and that support would have to be provided to help them to achieve this.  She stressed that Government intervention was need to address the issue that foster carers, social workers and placement providers were able to earn more working with agencies than with the Local Authority.  She added that support was needed nationally to stop people effected by the cost of living crisis being pushed into poverty which would have knock on effects for a significant period to come.

The Leader noted that the MacAlister review had identified that some residential placement providers for young people were making 30% profit on placement which needed to be addressed by Government.

The Transportation, Planning and Environment Portfolio Holder was pleased to note the investment in the Energy Efficiency Capital Programme in improving the efficiency of the Council estate and providing better value for money from a £2.5m investment.

The Leader called on the Prime Minister and Chancellor to consider the value Local Authorities provided for children and adults and stressed the need for this to be reflected in the financial settlement.

Resolved -

(1)      That the contents of Document “Z” and the actions taken to manage the issues highlighted be noted.

(2)      That the change to the funding of the Markets and Development of Equity Loans capital schemes, £0.4m and £0.644m annual allocation, from revenue contributions to corporate borrowing be approved.

(3)      That the following capital expenditure schemes as outlined in section 12.3 and 12.4 of Document “Z” be approved.

·         £0.08m to install additional fencing at West Holme Fields, Ilkley subject to final PAG approval. This will be funded by invest to save borrowing.

·         £1m for schemes to be funded by corporate borrowing general contingency budgets rather than revenue contributions.

·         £5.384m for the completion of design and development works for the Transforming Cities Project. The scheme is to be funded by short term borrowing prior to reimbursement from WYCA. Regular updates are required to PAG, including details on spend to date, WYCA funding approvals and grant income received.

·         £2.5m for the continuation of the Energy Efficiency Capital Programme. This scheme is already included in Reserve Schemes and will be funded by corporate borrowing.

ACTION: Director of Finance