Agenda, decisions and draft minutes

Councillor Win Mullen-James would be arriving late to the meeting due to a prior engagement.

Councillor Win Mullen-James would be arriving late due to a prior engagement.

No declaration of interest had been raised.

No declaration of interest had been raised.

No urgent matters had been raised.

No urgent matters had been raised.

To receive the minutes of the Cabinet meeting held on 19 December 2023 (copy enclosed). 

RESOLVED that the minutes of the meeting held on 19 December 2023 be received and confirmed as a correct record.

The minutes of the Cabinet meeting held on 19 December 2023 were submitted.

RESOLVED that the minutes of the meeting held on 19 December 2023 be received and confirmed as a correct record.

To consider the outcome of the review of the decision taken by Cabinet on 19 December 2023 relating to the Library/One Stop Shop Savings Proposal which had been subject of a call-in and considered by Communities Scrutiny Committee on 11 January 2024.

RESOLVED that –

(a)      Cabinet acknowledges Communities Scrutiny Committee’s observations, conclusions and recommendations following its review of the Cabinet decision relating to the ‘Library/One Stop Shop Savings Proposal’, and

(b)      Cabinet does not accept the Scrutiny Committee’s report recommendation 3.2, confirms its original decision made on 19 December 2023, and undertakes to do further work to identify alternative sources of funding.

Councillor Huw Williams, Chair of Communities Scrutiny Committee presented the report on the findings and recommendations of the Scrutiny Committee held on 11 January 2024 following consideration of the call-in of the Cabinet decision taken on 19 December 2023 relating to the Library/One Stop Shop Savings Proposal.

The report referenced the lengthy debate at the Scrutiny Committee meeting based on the grounds of the call-in, and highlighted the Committee’s particular concerns over the reduction in opening hours and the impact that would have on the –

·       availability and accessibility of library and one stop shop services to residents, especially the most vulnerable and digitally excluded

·       availability of ‘warm spaces’ for those worse hit by the cost-of-living crisis, people who were lonely, and those living with health issues and their carers

·       availability of facilities for children and young people to use for study or research work, or as safe havens away from chaotic personal or family situations

·       availability of libraries for use by community groups and voluntary organisations for them to deliver much needed support and advice services to residents.

The Committee was also concerned about potential unintended negative effects on other already stretched council services, the adverse effect on staff morale and impact the potential loss of experienced staff would have on the service’s future capacity to deliver quality services.  Members felt not enough investigations had been made with outside bodies or external organisations to secure other funding or resources to help maintain current service levels prior to a decision being made.  Consequently, Cabinet was asked to reconsider its original decision taking into account the Scrutiny Committee’s conclusions and recommendations that Cabinet –

       (i)       acknowledges Communities Scrutiny Committee’s observations, conclusions and recommendations following its review of the Cabinet decision relating to the ‘Library/One Stop Shop Savings Proposal’, and

      (ii)      agrees to the Committee’s recommendation to postpone the implementation of the decision until further exploratory work is done to identify alternative funding sources available to the Council or other partner bodies whether in the private or public sector.

The Leader thanked Councillor Williams for reporting on the scrutiny debate and recommendations.  Cabinet also thanked the Scrutiny Committee for their work.

Councillor Emrys Wynne sympathised with the concerns raised regarding the potential impact a reduction in hours would have as set out in the report.  However, his view remained that the reasons for the call-in, and those concerns, had been thoroughly debated by Cabinet on 19 December and Cabinet had been fully aware of all those issues and risks when the decision was made.  The decision was necessary to respond to the severe financial challenge and set a balanced budget.  Cabinet had listened and responded to public consultation feedback with changes resulting in circa 30 additional opening hours compared to the original proposal and opening on specific days. He did not support the Scrutiny Committee’s recommendation to postpone implementation of the decision until further work was done to identify alternative funding sources.  He had already committed to working with members, officers, and City/Town/Community Councils to consider alternative models of delivering library services with a view to future proofing and growing that provision, mitigating the cuts, and seeking other sources of income, and there was an immediate need to set a balanced budget for the next financial year.  No one wanted to cut library services, but the decision represented the best possible outcome for libraries given the current financial position and meant no library would have to close and all current services would continue, albeit on reduced hours.

Councillor Gwyneth Ellis also recognised the thorough scrutiny and was pleased that the recommendation  ...  view the full minutes text for item 5.

To consider a report by Councillor Gwyneth Ellis, Lead Member for Finance, Performance and Strategic Assets (copy enclosed) setting out the implications of the Provisional Local Government Settlement 2024/25 and proposals to set a balanced budget for 2024/25.

RESOLVED that Cabinet –

(a)      notes the impact of the Provisional Settlement 2024/25;

(b)      supports the proposals outlined in Appendix 1 to the report, and detailed in Section 4 of the report, and recommends them to the full Council in order to set the budget for 2024/25;

(c)      recommends to Council the average Council Tax rise of 8.23% for council services plus an additional 1.11% for the increase in the levy to the North Wales Fire and Rescue Authority; this equates to an overall uplift of 9.34% proposed;

(d)      recommends to Council that authority is delegated to the Head of Finance and Audit in consultation with the Lead Member for Finance, to adjust the use of cash reserves included in the budget proposals by up to £500k if there is movement between the draft and final settlement figures in order to allow the setting of Council Tax in a timely manner;

(e)      supports the strategy for use of reserves as set out in paragraph 4.5 of the report and recommends to the full Council, and

(f)       confirms that it has read, understood and taken account of the Well-being Impact Assessment as set out in Section 7 of the report.

Councillor Gwyneth Ellis presented the report setting out the implications of Welsh Government’s Provisional Funding Settlement for Local Government 2024/25 and proposals to set a balanced budget for 2024/25, including the level of Council Tax.

The unprecedented financial challenges facing the council, along with all other local authorities, meant a different process to budget setting was required and it had been an extremely difficult and uncomfortable process.  Councillor Ellis thanked all involved in that process which had resulted in the submission of a balanced budget.

Councillor Ellis and the Head of Finance and Audit provided an overview of the budget process and latest financial position and elaborated on the proposals for consideration and recommendation to full Council in order to set the budget for 2024/25.  In brief, the provisional settlement had resulted in a cash increase of 3.6% (£6.720m) and following a council tax base adjustment was higher than the cash comparison at 3.7% (compared to the Welsh average of 3.1%) with a final settlement expected in early March. The settlement included all pay increases for teaching and non-teaching posts and responsibility to pay care workers the Real Living Wage.  Pressures amounting to £24.682m had been detailed and the provisional settlement generated £6.720m leaving a funding gap of £17.962m with proposals to bridge that gap identified in the report and further explained at the meeting.  A Council Tax rise of 8.23% plus an additional 1.11% (change to the indicative figure of 1.3% in the report) for the increase in the levy to North Wales Fire and Rescue Authority equating to an overall uplift of 9.34% was proposed to generate £7.580m additional revenue.  The proposed use of earmarked reserves was also highlighted to assist the budget setting.  The risks of not achieving a balanced budget had also been set out together with mitigation measures and further work required going forward.  The medium-term financial outlook looked equally as challenging.  Due to the lateness of the final settlement, it was recommended that authority be delegated to enable cash adjustments in the budget proposals of up to £500k.  It was important to note that if proposals in the report were not accepted, alternative proposals must be submitted so that the Council’s statutory responsibility to set a balanced budget could be met.

During debate Cabinet condemned the financial situation facing local government which meant severe cuts had to be made to vital services in order to set a balanced budget and called for improved and sustainable funding to deliver those services.  It was noted that recent calls had been made by MPs across the political spectrum for the UK Government to provide additional funding for local government.  Given the current financial context, Cabinet believed the budget proposals represented the best outcome to ensure social care services and school learners were protected as far as possible and to safeguard the most vulnerable in society.

Cabinet welcomed the higher than expected settlement from Welsh Government but noted it had been based on data which would result in higher demand for services and did not materially change the budgetary position given that service delivery in 2024/25 would cost an additional £24.682m compared to 2023/24, mainly due to inflationary pressures and major increase in demand from client services.  The risk that the demand for complex services would continue to increase with more demand for care services and more people facing homelessness was recognised.  Tribute was paid to the hard work in making savings to date, despite which, Heads of Service had been issued with a further savings target of £3m to make up the shortfall with proposals to members  ...  view the full minutes text for item 6.

To consider a report by Councillor Gwyneth Ellis, Lead Member for Finance, Performance and Strategic Assets (copy enclosed) seeking Cabinet approval of the proposed consultation response to the Welsh Government Consultation on “Fairer Council Tax”.

RESOLVED that Cabinet –

(a)      approve the proposed consultation response as set out in Appendix 4 to the report, supporting officers’ recommendations on the Expanded proposal and delivered through an incremental approach, and

(b)      the decision be implemented immediately as an urgent decision under Section 7.25 of the Council’s Constitution based on the rationale as set out in paragraph 4.4. to the report.

Councillor Gwyneth Ellis presented the report seeking Cabinet approval of the proposed consultation response to Welsh Government on “Fairer Council Tax”.

Welsh Government (WG) had commenced a consultation on proposed changes to the Council Tax system which aimed to make the distribution of taxes more equitable by reducing Council Tax for those in the lower bands who may struggle to contribute while increasing it for those in higher bands.  Views were sought on three options: (1) Minimal Reform; (2) Modest Reform, and (3) Expanded Reform together with implementation timescales.

The Principal Revenues, Benefits and Contract Manager guided Cabinet through the report detail on the consultation together with the reasoning behind the proposed response and the risk, issues and benefits to the Council and its residents.  Having provided an overview of the three options it was recommended that Cabinet support the Expanded Reform, as it was deemed the fairest form of taxation option within the consultation for residents.  The potential risk to the council through increased reliance on Revenue Support Grant (RSG) funding had been highlighted in the proposed response with a request for WG to provide further assurances on corresponding impacts of RSG.  To ensure that any impacts were fully understood and implemented at a pace that could be managed by the council it was proposed that the incremental approach be supported.  It was also recommended that Cabinet’s decision on the proposed response to the consultation be implemented immediately to ensure submission of the response by the deadline.

Cabinet welcomed the proposed changes to the Council Tax system to make the tax fairer and more progressive and supported the report recommendations and Expanded Reform option which would best benefit Denbighshire residents.  However, the potential removal of £8m from the council tax base as a consequence of moving to the new band structure in the expanded scheme and subsequent reliance on that loss being compensated by the RSG was a cause of some concern and Cabinet highlighted the importance of a fair and proportionate RSG settlement to enable the authority to deliver services for residents.  The Head of Finance and Audit explained the operation of the current system in allocating the RSG based on the ability of local authorities to raise Council Tax and the continuation of that principle going forward but further detail would be required in order to better understand the full implications of that change, hence the assurances being sought from WG in the consultation response.  Councillor Gill German added that it was important for all local authorities to respond to the consultation in order to work together with the Welsh Government to find the best way forward.

RESOLVED that Cabinet –

(a)      approve the proposed consultation response as set out in Appendix 4 to the report, supporting officers’ recommendations on the Expanded proposal and delivered through an incremental approach, and

(b)      the decision be implemented immediately as an urgent decision under Section 7.25 of the Council’s Constitution based on the rationale as set out in paragraph 4.4. to the report.

To consider a report by Councillor Gwyneth Ellis, Lead Member for Finance, Performance and Strategic Assets (copy enclosed) detailing the latest financial position and progress against the agreed budget strategy.

RESOLVED that Cabinet note the budgets set for 2023/24 and progress against the agreed strategy.

Councillor Gwyneth Ellis presented the report detailing the latest financial position and progress against the agreed budget strategy.

A summary of the Council’s financial position was provided as follows –

·       the net revenue budget for 2023/24 was £250.793m (£233.696m in 2022/23)

·       an overspend of £3.229m was forecast for service and corporate budgets

·       highlighted current risks and assumptions relating to corporate budgets and individual service areas

·       detailed savings and efficiencies and increases in fees and charges (£8.172m)

·       provided a general update on the Housing Revenue Account, Treasury Management, Capital Plan and major projects.

The Head of Finance and Audit guided members through the detail of the report.  There was a slight decrease in the forecasted overspend on service and corporate budgets of £96k compared to the previous month and main areas of overspend continued to be due to pressures in Adults Social Care and Homelessness, Education and Children’s Services and Highways and Environmental Services.  There had been an increase in Education and Children’s Services due to the needs of two existing placements increasing resulting in a negative movement of £480k which had been offset by services finding in-year savings through ceasing non-essential expenditure and delaying expenditure where possible.  The Housing Revenue Account had reported a slight reduction in their underspend at £108k from £122k due to a slight reduction in rental income with a forecast year-end balance of £754k.  There was no change in the forecasted use of reserves for schools.  The usual appendices had been included on the Capital Plan and Major Projects.

The Leader thanked the Lead Member and Head of Service for their continuing hard work and reiterated the importance of the regular monitoring reports.

RESOLVED that Cabinet note the budgets set for 2023/24 and progress against the agreed strategy.

RESOLVED that Cabinet’s forward work programme be noted.

The Cabinet forward work programme was presented for consideration and members noted one addition for February on ‘Capital Budget Proposals 2024/25’.

RESOLVED that Cabinet’s forward work programme be noted.

RESOLVED that under Section 100A of the Local Government Act 1972, the Press and Public be excluded from the meeting for the following item of business on the grounds that it would involve the likely disclosure of exempt information as defined in Paragraphs 12 and 14 of Part 4 of Schedule 12A of the Act.

To consider a confidential report by Councillor Gwyneth Ellis, Lead Member for Finance, Performance and Strategic Assets (copy enclosed) seeking Cabinet approval to declare Peronne Farm surplus to the requirements of the Council and to approve its disposal.

RESOLVED that Cabinet –

(a)      approves the declaration of Peronne Farm, as shown edged red on the plan attached at Appendix A to the report, as surplus to requirements and approves the disposal of the farm as set out in the report, and

(b)      confirms that it has read, understood and taken account of the Wellbeing Impact Assessment (Appendix D to the report) as part of its consideration.

Councillor Gwyneth Ellis presented the confidential report seeking Cabinet approval to declare Peronne Farm surplus to the requirements of the Council and to approve its disposal as set out within the report in accordance with existing policy.

Cabinet was advised that the property formed part of the Agricultural Estate and details of its current operating arrangements were provided together with the tenancy agreements in place and the proposed terms of disposal.  As part of the process local ward members and the local community council had been contacted and no objections to the disposal had been received.  The Asset Management Group also supported the disposal as set out and recommended it to council.

During consideration of the report Cabinet noted that a proportion of the net proceeds of the sale would be used to fund current capital expenditure which would reduce the borrowing costs of the Council and allow the release of funding from the capital financing budget to fund the ongoing pressure created by the disposal, which still left a significant capital receipt.  In terms of providing the detail of capital receipts generated and their use this information could be included in the Capital Strategy in future. Cabinet would be discussing the Capital Plan at its next meeting.

RESOLVED that Cabinet –

(a)      approves the declaration of Peronne Farm, as shown edged red on the plan attached at Appendix A to the report, as surplus to requirements and approves the disposal of the farm as set out in the report, and

(b)      confirms that it has read, understood and taken account of the Wellbeing Impact Assessment (Appendix D to the report) as part of its consideration.

The meeting concluded at 12.25 pm.