Agenda item

The Director of Finance and Corporate Services gave Members a verbal update in relation to the above as a result of the provisional budget announcement made by Welsh Government on 8^th October, 2014.

Members were pleased to note that the provisional settlement announced on 8^th October was a reduction of 2.4% which was less than the reduction of 4.5% anticipated and on which the report to Cabinet on 1^st October had been based.  Members were however reminded that the cut of 2.4% was equivalent to a cut of £19 million (previously £23 million) which now   obviated the need to identify further saving to close the previously reported shortfall of £2.8 million.

The Director however warned Members that the majority of the proposed budget savings, as contained in the report of 1^st October and subject to consultation, would still be necessary to achieve a balanced budget.

Members were reminded that the Specific Grants had not yet been announced and that issues may arise when these became known resulting in some of the savings being used to offset any cut in the grants.  The Director would advise Members of the current position separately.

Members again discussed the use of Reserves in addressing some of the shortfall but were advised that this would just result in a one off saving and would not solve the problem over the three years.  Some reserves would likely be used to balance the budget for 2015-16 due to be considered by Council in early February 2015.

The work of all concerned, in lobbying Welsh Government, was commended.

RESOLVED:        that the above report, be noted.