Agenda item

To consider a report by Councillor Julian Thompson-Hill, Lead Member for Finance, Performance and Strategic Assets (copy enclosed) setting out the implications of the Local Government Settlement 2018/19 and proposals to finalise the budget for 2018/19.

RESOLVED that Cabinet –

(a)       notes the impact of the Local Government Settlement 2018/19;

(b)       supports the proposals outlined in Appendix 1 to the report which were in line with assumptions presented to members at budget briefings held in November 2017, and accordingly recommends them to the full Council in order to finalise the 2018/19 budget, and

(c)        recommends to Council that the average Council Tax rise required to support the budget is 4.75%, which recognises the increasing cost pressures in adults and children’s social care by providing additional funding of £1.5m.

Councillor Julian Thompson-Hill presented the report setting out the implications of the Local Government Settlement 2018/19 and proposals to finalise the budget for 2018/19, 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 2018/19.  The final settlement had resulted in a cash reduction of -0.2% (provisional settlement had indicated -0.9%) but in order for the funding position to have remained neutral the settlement would have needed to be at least +3.6%.  Whilst the reduction had not been as great as first feared other factors needed to be taken into account such as pressures in pay, pension and the National Living Wage, as well as price/energy inflation, fire service levy and allowances for increases to the Council Tax reduction scheme.  Pressures remained across the authority with an increased demand for funding education and social care – the proposed budget included an increase of £1.8m (2.7%) in budgets for schools and an additional allocation of £1.5m (3.2%) to social care.  Savings had been found from across the Council to help deliver a balanced budget.  With regard to Council Tax a rise of 4.75% was proposed which included an additional allocation of 2% to fund social care pressures worth £1.5m.

Cabinet discussed the budget proposals, acknowledging the continued reduction in Denbighshire’s budget allocation and subsequent implications for services, and also recognised that the financial climate remained challenging into the future which would lead to more difficult decisions.  Whilst welcoming the proposed increases to the social care budget Councillor Bobby Feeley highlighted her funding concerns for future years given the continued increased demand and future pressures identified.  She also highlighted the need to ensure residents were made aware of the specific increase in Council Tax to fund existing social care pressures.  Councillor Huw Hilditch-Roberts agreed, adding that there was a perception that Council Tax accounted for most of the Council’s budget which also needed to be addressed.  He believed that the proposed budget was fair, coherent and prudent and should give confidence to residents with social care, education and children’s services being protected.  In light of continued pressures and reduced future settlements members were also keen to start the budget process for future years as early as possible.

Further discussion on the budget proposals focused on the following –

·         work was ongoing to manage energy costs and keep increases to a minimum; reducing energy consumption was a key issue in the Corporate Plan and an Energy Prospectus was currently being developed

·         tribute was paid to the work of the retiring County Archaeologist and the implications of deleting that post was discussed.  It was noted that specialist advice may need to be sought from outside the authority in the future

·         the reasoning behind the removal of the small business development grant scheme in favour of a 50% saving and investment into a more focused business improvement system was elaborated upon

·         work was being carried out with schools and HR to ensure contracts for staff were suitable and adaptable within schools to enable contracts to be changed in line with changing needs

·         the Council was still supporting independent living and resilience and whilst the Supporting People Team were taking up the issue over the future of the Welsh Independent Living Grant, other means had been identified which would enable that support to be continued without that specific grant funding

·         whilst additional funding was being put into education and social care it was recognised that both sectors would still be under a lot of pressure

·         the additional base budget elements as detailed in the financial projections for future years was further explained in response to questions

·         the difference between general balances and reserves was explained and officers confirmed that whilst there was general guidance with regard to the amount of general balances and reserves to be held by local authorities there was no prescribed amount in law.

RESOLVED that Cabinet –

(a)       notes the impact of the Local Government Settlement 2018/19;

(b)       supports the proposals outlined in Appendix 1 to the report which were in line with assumptions presented to members at budget briefings held in November 2017, and accordingly recommends them to the full Council in order to finalise the 2018/19 budget, and

(c)        recommends to Council that the average Council Tax rise required to support the budget is 4.75%, which recognises the increasing cost pressures in adults and children’s social care by providing additional funding of £1.5m.

At this juncture (12.10 p.m.) the meeting adjourned for a refreshment break.