Agenda item

To consider a report (copy attached) providing an update on the budget setting process and detailing proposals to be approved by County Council to set the Council’s revenue budget for 2017/2018.

 

The Lead Member for Finance, Corporate Plan and Performance, Councillor Julian Thompson-Hill, presented the Budget 2017/18 – Final Proposals Report (previously circulated).

 

The report set out the implications of the Local Government Settlement 2017/2018 and proposals to finalise the budget for 2017/2018.

 

The Council was legally required to set a balanced and deliverable budget before the start of each financial year and to set the resulting level of Council Tax to allow bills to be sent to residents.

 

The purpose of the report was to provide an overview of the budget process, the impact of the Local Government Settlement and to consider proposals to set the budget for 2017/18, including the level of Council Tax.

 

The final Local Government Settlement for 2017/18 had been received on 21 December 2016 and provided a cash increase of 0.6%.  The Provisional Settlement provided an increase of 0.5%.  Although the Settlement provided for a cash increase, in real terms, it was a cut as it took no account of inflation or service demand pressures. 

 

As the funding for the Council Tax Reduction Scheme had been frozen for several years, the Council had to fund the cost of Council Tax increases, estimated at £350k.  The proposals would allow for £200k of new investment in priorities.

 

The level of Council Tax increase proposed was 2.75%.  This was in line with assumptions around inflation for the coming year and was likely to be below the average level of increase in Wales.

 

At the Budget Workshop in November 2016, there had been some debate around the level of Council Tax rise and the subsequent impact on the budget of higher or lower levels of increase.

 

Given the range of pressures the Council faces, particularly the continuing pressures on social care budgets and the trajectory of general inflation, a rise of 2.75% was thought to be prudent and sustainable.

 

The Leader, Councillor Hugh Evans reminded Members this would be the final budget the current Council would set and would be the most important.  The term of the current Council had been the most challenging Denbighshire had faced, but during that, Denbighshire had continued as one of the highest performing Councils in Wales.  The Council would need to change how they delivered services in the future.

 

The Leader went on to thank the Lead Member for Finance, Corporate Plan and Performance, Councillor Julian Thompson-Hill and the Finance Team for their work during the term of the current council.

 

During debate the following were discussed:

·       Energy efficiency – the council were members of a procurement framework which meant the best rates available for both gas and electricity.  The price of oil has risen which had caused an increase in prices.  The Local Authority do the best to minimise energy costs eg: replacing street lighting with LED lighting, work had been carried out regarding swimming pool covers to conserve energy.  There were a lot of Victorian buildings under the ownership of the council which were not energy efficient, therefore there were variances in external costs.

·       Denbighshire had no input into the Police precept as they are an autonomous body for which Denbighshire collect and forward the amount they expect.  This was the most efficient way for all elements to be collected in one go.

·       Most of the grants announced to date had a small reduction but were not massively cut.

·       In terms of the PFI, it was terminated to realise savings.  Other councils had since contacted Denbighshire requesting advice regarding their PFI building contracts.

·       The Well-being Impact Assessments were criticised by some members as they did not contain sufficient information.  It had been confirmed by the Lead Member for Finance, Corporate Plan and Performance that the Assessments were new but were a work in progress and, therefore, not the finished article.  The Chief Executive had asked they be included in every recommendation for all public committee’s hereon in.

·       A number of members expressed their disagreement to the recommended rise of 2.75% for Council Tax.  It was stated that this debate had taken place at the budget workshops and agreement had been obtained to carry the 2.75% forward to Full Council for approval. 

 

The Chief Executive clarified to Members that this was the final budget for the current council.  During the previous 5 years, investment had taken place in schools and libraries, Leisure had done extremely well.  While taking £30million out of Denbighshire’s expenditure, the council had maintained its position as one of the leading councils.

 

There had been pressure on the Council, 15% of staff had been lost during the past 5 years, 10 official council buildings had gone to 4 and would soon be down to 3.  This had saved money for the council whilst not impacting on the quality of the service.  This year £1.9million has been put into education and increasing social care. 

 

It was forecast that the current year would probably be the last of the good budgets.  The budget had been balanced utilising cash but that was not sustainable. 

 

It was important to appreciate what had been done well during the past 5 years but the future predicted to show difficult times ahead for all councils.

 

At this juncture Councillor Rhys Hughes PROPOSED the council tax level be set at 2.5%, SECONDED by Councillor Arwel Roberts.

 

The Head of Legal, HR and Democratic Services explained that the amendment put forward by Councillor Rhys Hughes, seconded by Councillor Arwel Roberts would be voted on in the first instance for a council tax rise of 2.5%.

 

VOTE:

For – 4

Abstain – 1

Against – 27

 

Therefore, the amendment was defeated.

 

Lead Member, Councillor Julian Thompson-Hill PROPOSED the original recommendation for a council tax rise of 2.75%, SECONDED by the Leader, Councillor Hugh Evans.

 

At this juncture, it was agreed by all Members that the date of the budget workshop (1 November 2016) be deleted from the recommendation.

 

VOTE:

For – 29

Abstain – 1

Against – 4

 

RESOLVED that Council:

·       Note the impact of the Local Government Settlement 2017/18

·       Approves the proposals outlined in Appendix 1, in order to finalise the 2017/18 budget

·       Approves the resulting average Council Tax rise of 2.75% required to support the budget proposals.