Executive Board to consider four funding options for Citizens Advice Service – report questions why £23k cut would result in service closure

A decision on the future funding of Wrexham’s “under threat” Citizens Advice Service will be made next week – with four options up for consideration by senior councillors in a report that also questions why a cut of £23k from a charity with ‘substantial reserve value’ would result in closure.

It has been warned that the service, based on Grosvenor Road in Wrexham, faces closure this summer unless immediate funding is provided by Wrexham Council.

A decision to phase out the ‘core funding’ for advice services over a two year period was made by members of the then executive board in October 2015. The decision itself was held under part two, meaning members of the press and public were excluded from the meeting so the exact debate is unknown.

On Tuesday 12th June executive board members will consider potential funding options which could help fund the advice service for a minimum of another 12 months.

The report itself provides a timeline style background to the 2015 executive board decision and lists meetings with representatives from Citizens Advice over the past three years.

However it noted that in March 2018, meetings were held with CAB Wrexham “following indications that they would cease operating by June 2018 unless funding from Wrexham County Borough Council was provided”.

The report continues onto say: “At the request of Wrexham County Borough Council, further information was provided by CAB Wrexham including a 16/17 financial summary, the current operating model and recent staffing structure.

“It was apparent from the financial detail provided by CAB Wrexham that the transition grant would be used to cover such things as training costs, rent, light and heat, premises running costs, travel expenses, stationery, telephony, audit fees, insurance, repairs and renewals, sundries, room hire, subscription costs etc. and therefore had no direct link to service provision.

“It also went against the decision made in October 2014 to cease core funding for third sector organisations.”

The report adds: “The financial detail provided by CAB Wrexham also appeared to indicate that no action had been taken to address cost reductions in the last two years to address the phasing out of funding.

“The charity also operates with a substantial reserve value and it is not clear why the reduction of £23,600 funding from 2017/18 is resulting in closure in this financial year.

“Wrexham County Borough Council have also discussed the possibilities for further efficiencies and possible mergers but these have been discounted by CAB Wrexham.”

In May 2018 a notice of motion was submitted to full council by members of the Labour group – who requested that Wrexham Council grant £50,000 of funding to CAB to prevent its “imminent closure”.

It was also requested that a further review into the future of the service was undertaken.

As a result of the motion four potential options, including three financial, have been put together and will be debated by executive board members and councillors next week – who are set to create their own recommendations to vote on which may or may not contain elements of these:

The four options are:

1. Uphold the decision to cease core funding of third sector organisations and therefore continue with the proposal to end CAB Wrexham’s core funding. (This has ended March 2018).

2. Fund at the level of the motion of £50k for a further 12 months and carry out a review of Wrexham CAB’s viability needs for the following year 2019/20.

3. Fund at the level of £25k for 18/19 which would enable Wrexham CAB to deliver approximately 5000 interviews based on the average cost per interview.

4. Continue to fund at the 2017/18 level of £23,600 to extend the phasing out of core funding for another 12 months, with a view to supporting CAB Wrexham to ensure sustainability moving forward and carry out a further review of Wrexham advice services for implementation in the following year – 2019/20.

If such a decision is made to overturn the previous executive board decision, funding for 2018/19, if required, “would be charged to Supporting People” as the budget savings have already been made in the council’s budget.

The report plus the four options will be discussed and voted on by executive board members on Tuesday 12th June at 10am.

The meeting will be webcast on the Wrexham Council website and unlike the 2015 decision, it appears it will be held in Part 1 meaning press and public can attend and view proceedings.

It is not clear what element of this debate is substantively different from the 2015 debate that was held in secret.