Trust which ran council’s cultural services owes local authority over £640k

Anthony Lewis – Local Democracy Reporter

A trust which used to run leisure and cultural services for a Welsh council owes the local authority over £640,000.

Merthyr Tydfil Leisure Trust, also known as Wellbeing Merthyr, had its contract terminated in April this year with the council bringing services back in house.

Council cabinet member for governance and resources, Councillor Anna Williams-Price, Labour, said the trust had declared a status of being in liquidation owing the council £641,000, which was  said to be fully provided for.

But she said there was a risk that other debt could pass to the council if it couldn’t be funded from the trust’s remaining funds.

Surplus

A more than £3m budget surplus is being reported for Merthyr Tydfil Council in the last financial year (2023/2024).

The budget monitoring report that went before cabinet showed that for 2023-24, the council was provisionally reporting a net revenue budget surplus of £3.092m.

This is subject to audit and it’s being recommended that the council transfers this surplus to the budget reserve.

Report

General reserves at March 31, 2024, stood at £5.723m, which is 3.75% of the council’s budgeted net revenue spend for 2023-24.

Budget savings from the corporate vacancy factor, which are savings resulting from the time between posts becoming vacant and then re-filled, have exceeded the budgeted £1.7m by £145,000.

The report also said a contribution from the budget reserve of £5.5m was drawn down in full in line with the approved budget strategy.

The final audited revenue out turn position will be reported to council when the external audit of the accounts is done by Audit Wales.

As for this financial year, a net revenue budget deficit of £647,000 is being forecast, as at the end of the second quarter of the year, which covers the period between April 1 and September 30.

Deficits

It includes projected deficits of £780,000 for education, £793,000 for economy and public protection, £785,000 for neighbourhood services and £146,000 for governance and resources but there are projected budget surpluses of £331,000 for social services and £1.061m for corporate.

The council is also forecasting a surplus against the council tax collection fund of £465,000.

The report recommended managers urgently address projected budget deficits, identifying all possible measures to offset them.