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 2020/21 and proposals to finalise the budget for 2020/21.

RESOLVED that Cabinet –

(a)       notes the impact of the Draft Local Government Settlement 2020/21;

(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 finalise the budget for 2020/21;

(c)        recommends to Council the average Council Tax rise of 4.3% proposed;

(d)       recommends to Council that authority is delegated to the Head of Finance and Property in consultation with the Lead Member for Finance to adjust the use of cash 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, and

(e)       confirms that it has read, understood and taken account of the Well-being Impact Assessments submitted as part of the report.

Councillor Julian Thompson-Hill presented the report setting out the implications of the draft Local Government Settlement 2020/21 and proposals to finalise the budget for 2020/21, 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 2020/21.  The draft settlement had resulted in a positive settlement of +4.3% with the final settlement expected on 25 February 2020.  Pressures amounting to £12.418m had been detailed which, together with £2m unidentified savings from 2019/21, resulted in a total shortfall of £14.418m.  The +4.3% settlement generated £6.219m leaving a funding gap of £8.199m with proposals to bridge that gap identified within the report and further explained at the meeting.  A 4.3% rise in Council Tax had been proposed which would generate £2.298m additional revenue.  Due to the lateness of the final settlement it was recommended that authority be delegated to enable cash adjustments included in the budget proposals of up to £500k.  The proposals presented a balanced budget with little impact on residents.

The Leader acknowledged the robust budget process and further complexities given the late timing of the draft settlement.  He was pleased that Welsh Government had reacted favourably to intense lobbying on the pressures faced by local government and hoped positive settlements would continue and a three year settlement would be provided.  He also supported the report recommendations.

Main areas of debate focused on the following –

·         Councillor Mark Young referenced proposals announced by the UK Government regarding additional funding for the NHS and the impact for Wales.  It was explained that as the NHS was a devolved function any proposals announced by the UK Government would have a Barnett formula consequential for Wales and it would be up to Welsh Government to decide how to allocate that funding.  Their viewpoint to date had been to prioritise funding for the NHS followed by local government.  However there were areas of overlap which would be subject to future discussions with the Health Board at the appropriate time

·         Councillor Graham Timms referred to various elements of the budget process and questioned the merits of using the extra funding from the better than expected settlement to reduce the rise in Council Tax from 4.8% to 4.3% rather than directly on the provision of services for residents.  Councillor Thompson-Hill confirmed that outside of the Revenue Support Grant there were a number of specific grants announced at different times which had an impact on the budget.  Prior to notification of the draft settlement a Council Tax increase of 4.8% had been considered a necessity to ensure a balanced budget.  The increase in funding enabled a number of measures to be proposed which included reducing the impact on schools by £700k; addressing identified unfunded pressures; reducing the amount of cash to underpin the budget, and making a small reduction to the proposed increase in Council Tax.  Given the burden on residents it was considered appropriate not to charge more Council Tax than absolutely necessary.  The changes proposed would not negatively impact on residents and was considered a sensible and reasonable package of measures to address the better than anticipated settlement.  The Leader added that there were residents struggling to pay Council Tax across the county and the aim was to deliver a balanced budget to support services but also take into account the effect on residents and he could defend the Council’s position from any challenge in that regard

·         Councillor Bobby Feeley referred to the large proportion of funding Welsh Government allocated to the NHS and was disappointed that long standing discussions on bringing health and social care closer together had not materialised in terms of finance, particularly given that additional funding allocated for social care would also result in a positive impact on the NHS

·         Councillor Emrys Wynne raised some concern regarding the reference to non-filling of vacant posts as part of service efficiency savings and the impact in terms of response times and workforce pressures.  The impact on resiliency and capacity within teams was noted and the Leader reported that each Cabinet Member worked with the Head of Service for their portfolio areas on service budgets and were fully aware of the impact of the savings put forward in the provision and delivery of services.  The Chief Executive added that given ten years of austerity it was no longer possible to make service efficiencies with no impact and the Council needed to work within its resources – much work had been carried out in terms of structure, technology and up skilling of staff to ensure the best possible output to deliver services and officers worked hard in that regard.  The Senior Leadership Team also worked with Cabinet members on how best to make savings without impacting on service delivery for residents.

RESOLVED that Cabinet –

(a)       notes the impact of the Draft Local Government Settlement 2020/21;

(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 finalise the budget for 2020/21;

(c)        recommends to Council the average Council Tax rise of 4.3% proposed;

(d)       recommends to Council that authority is delegated to the Head of Finance and Property in consultation with the Lead Member for Finance to adjust the use of cash 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, and

(e)       confirms that it has read, understood and taken account of the Well-being Impact Assessments submitted as part of the report.