Issue - meetings

To consider a report by Councillor Julian Thompson-Hill, Lead Member for Finance, Corporate Plan and Performance (copy enclosed) setting out the implications of the Draft Local Government Settlement 2017/18 and proposals to finalise the budget for 2017/18.

RESOLVED that Cabinet –

(a)       notes the impact of the Local Government Settlement 2017/18;

(b)       supports the proposals outlined in Appendix 1 to the report which were in line with assumptions presented to members at the budget workshop held on 1 November 2016, and accordingly recommends them to the full Council in order to finalise the 2017/18 budget, and

(c)        recommends to Council that the average Council Tax rise required to support the budget is 2.75%.

Councillor Julian Thompson-Hill presented the report setting out the financial implications of the Draft Local Government Settlement 2017/18 and proposals to finalise the budget for 2017/18, including the level of Council Tax.

Councillor Thompson-Hill provided an overview of the budget process and latest budget position and elaborated upon the proposals for consideration and recommendation to full Council in order to set the budget for 2017/18.  The final settlement had provided a cash increase of 0.6% but was a cut real terms because it took no account of inflation or service demand pressures.  Reference was made to a number of Welsh Government announcements which could benefit the council financially but they were not part of the financial settlement and therefore did not impact on the budget for 2017/18.  With regard to Council Tax a proposed rise of 2.75% was considered prudent and sustainable.

Cabinet discussed the budget proposals and debate focused on the following –

·         Councillor Eryl Williams highlighted the considerable pressure on school budgets, particularly for funding pupils with special needs through the education system which should be reviewed to reduce problems in future years.  School balances had diminished significantly over recent times and tribute was paid to the work undertaken with schools to ensure funding was being used effectively

·         Councillor Bobby Feeley also raised her concerns regarding pressures on social services and queried whether the proposed rise in Council Tax was sufficient to help address those pressures.  Councillor Julian Thompson-Hill advised that the continuing pressures on social care had been recognised with a pressure of £750k funded in the budget proposals with further increases planned for future years.  However, it was accepted that £750k would not fully meet the current level of overspend (£2m) and it was not possible to meet the full outstanding pressures on all services: difficult choices would need to be made in future.  The proposed 2.75% rise was considered a prudent and sustainable level.  It would have been necessary to increase Council Tax beyond the capped level to meet all current pressures.  Officers referred to additional funding for social services announced by the Welsh Government which would likely be in the form of a grant which would be managed going forward

·         Councillor David Smith reported upon the limited funding being made available from the Welsh Government in order to help meet costs incurred by the Council in the restoration of transport services following the collapse of GHA coaches.  No decision had been made as yet on the amount of funding for Denbighshire but it would not be sufficient to cover all additional costs incurred and would be a one off payment with no ongoing provision.  Further discussion would need to take place with regard to managing the ongoing provision of services. 

Cabinet agreed that the proposed budget was comprehensive and provided short term sustainability and also enabled small investment for the next Council.

RESOLVED that Cabinet –

(a)       notes the impact of the Local Government Settlement 2017/18, and

(b)       supports the proposals outlined in Appendix 1 to the report which were in line with assumptions presented to members at the budget workshop held on 1 November 2016, and accordingly recommends them to the full Council in order to finalise the 2017/18 budget, and

(c)        recommends to Council that the average Council Tax rise required to support the budget is 2.75%.