Agenda item

To consider a report by the Head of Finance (copy attached) to provide an update of the budget process and the impact of the Local Government Settlement and to approve the budget for 2018/19, including the level of Council Tax.

 

The Lead Member for Finance, Performance and Strategic Assets introduced the report (previously circulated) to set out the implications of the Local Government Settlement 2018/19 and proposals to finalise the budget for 2018/19.

 

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 Final Local Government Settlement for 2018/19 had been received on 20 December 2017 and had resulted in a cash reduction of -0.2% (the Welsh average being +0.2%).  The Provisional Settlement received in October 2017 indicated a reduction of -0.9% (Welsh average 0.5%). 

 

The change between the two settlement figures reflected an additional £20million allocated to local government as part of the Welsh Government’s final budget proposals.  This followed additional funding allocated to Wales as a consequence of the UK Government budget in November and mitigated the impact of the latest employers’ pay gap offer, which was higher than planned and reflected a move away from the policy of a 1% pay cap.

 

It was unsustainable to manage the ongoing pressures without permanently increasing the council’s funding base.  As the financial support from the Welsh Government reduced annually, the burden had to be met locally.  Therefore, a higher than originally planned Council Tax rise had been proposed. 

 

The rise in Council Tax by 4.75% would raise an additional £945k to be used as part of the overall package, which included an additional allocation to social care of £1.5million.

 

During discussions, the following items were raised:

·       It was confirmed to Members that the Waste element of the Single Environmental Grant had been cut by 10% in total.  Due to the cut in the amount of grant, two members of staff had been redeployed into alternative positions of employment.

·       The imminent retirement of the County Archaeologist had been confirmed and Members were informed that the post would not be replaced.  This would be in line with the other five North Wales Local Authorities.  If special archaeological advice was to be sought, it would need to be bought in on an ad-hoc basis.

·       The civic budget was no longer to sponsor the evening concerts at Llangollen Eistedfodd. 

·       Due to a change in the Data Protection Law, it was queried whether there would be any cost implications.  The Head of Finance confirmed he would enquire as to whether that would be the case and feedback to Members.

·       There had been significant change since the budget workshops held in November 2017 in relation to the overall pay deal.  A 1% pay cap had been accounted for within the budget, however the final offer had been 2.4%.

·       There was a need to explore how the county would deal with the issues within social services, education and also child poverty.

 

Both the Chief Executive and the Leader paid tribute to the officers who had put together the budget report.  It was confirmed that the budget was a positive document in the current circumstances. 

 

Councillor Arwel Roberts proposed an amendment to the recommendation that £500,000 from reserves could be passed to the education department due to the fact that there were a number of schools in difficulty and under extreme pressure.  Councillor Eryl Williams seconded the proposal.  At this juncture it was clarified by Councillor Roberts that the additional £500,000 be transferred from balances to education to be the subject of bids by schools for additional funding to support pupils with additional learning needs.

 

A vote took place for the amendment as follows:

 

In favour of the amendment – 13

Abstain – 1

Against the amendment – 31

 

Therefore the Amendment was not approved.

 

Councillor Julian Thompson-Hill proposed the recommendations as set out in the report, seconded by the Leader, Councillor Hugh Evans and it was:

 

RESOLVED that Council:

(i)              Notes the impact of the Local Government Settlement 2018/19

(ii)             Approve the budget as outlined in Appendix 1, which is in line with the assumptions presented to Members at budget briefings held in November 2017

(iii)            Approve the savings totalling £411k listed in Appendix 2 of the report as part of the budget package

(iv)           Approve the average Council Tax rise of 4.75%, which recognises the increasing cost pressures in adults and children’s social care and supports the allocation of £1.5m of additional funding to across the two services

(v)            Confirms that it has read, understood and taken account of the Well-being Impact Assessments submitted as part of the budget process.