Agenda item

To consider a report by Councillor Gwyneth Ellis, Lead Member for Finance, Performance and Strategic Assets (copy enclosed) setting out the implications of the Local Government Settlement 2023/24 and proposals to finalise the budget for 2023/24.

RESOLVED that Cabinet –

 

(a)       notes the impact of the Draft Local Government Settlement 2023/24;

 

(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 2023/24;

 

(c)        recommends to Council the average Council Tax rise of 3.8% 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 Assessment (Appendix 5 to the report)

Councillor Gwyneth Ellis presented the report setting out the implications of the draft Local Government Settlement 2023/24 and proposals to finalise the budget for 2023/24, including the level of Council Tax.  The Leader referred to the Council Budget Workshop held the previous week which had been well attended and Councillor Ellis added that members had worked well together on the budget setting process and commended the Head of Finance and his team on that work.

 

Councillor Ellis and the Head of Finance 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 2023/24.  The draft settlement had resulted in a positive settlement of 8.2% (compared to the Welsh average of 7.9%) with a final settlement expected early March 2023.  The settlement included all pay increases for teaching and non-teaching posts and responsibility to pay social care staff the Real Living Wage.  Pressures amounting to £25.116m had been detailed and the +8.2% settlement generated £14.231m leaving a funding gap of £10.885m with proposals to bridge that gap identified in the report and further explained at the meeting.  A Council Tax rise of 3.8% had been proposed to generate £2.13m additional revenue.  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.  The draft settlement had also included an indicative average settlement increase of 3.0% for 2024/25.  Finally, the extensive consultation on the budget setting process and involvement of all members in that process was reiterated.

 

Cabinet paid tribute to the work of the Head of Finance and his team on the budget and commended the wider engagement with all stakeholders and elected members as part of the budget setting process which had been clear, transparent and inclusive. The better than expected settlement from the Welsh Government was also welcomed to address some of the identified pressures and the effective budget management proposed to bridge the funding gap which enabled a proposed 3.8% Council Tax rise which was at the lower end of indicative increases across Wales.

 

During consideration of the report there was a lengthy debate on highways spend.  Councillor Emrys Wynne sought assurances regarding the sufficiency of the £4m increased investment in the highways capital programme going forward as proposed by Council.  Councillor Bobby Feeley referred to the severe damage caused to some of the county’s roads as a result of the extreme adverse weather over recent months, which could not have been foreseen, and had created a huge backlog of repair works that would require funding.  Councillor Terry Mendies highlighted the impact of inflation on the £4m spend and the desperate need for investment in rural roads, providing examples of near impassable roads in the Alyn Valley ward, with some roads providing a single route, and therefore lifeline, for those communities.  He suggested that the budget be revisited and, as a minimum, highway spend be increased by 3.8% in line with the proposed rise in Council Tax.

 

The Lead Cabinet Members and relevant officers responded to the issues raised, and subsequent questions and comments on highway maintenance as follows –

 

·       the £4m investment in the highways capital programme proposed by Council had been included in the budget for 2023/24 in line with the original commitment to fund the investment over five years.  However, that increased investment required approval on an annual basis as part of the budget setting process

·       reported on the strategy and prioritisation of highway spend, with a draft capital highway programme for the next financial year being discussed with members in the current round of Member Area Group (MAG) meetings to gain feedback before the draft was finalised – whilst the rise in inflation had an impact on what could be achieved, the additional funding was already making a difference and if the increased investment was maintained over a number of years it would make a significant difference to the quality of the county’s road network

·       Councillor Barry Mellor acknowledged the poor condition of some of the county’s roads and accepted an offer from Councillor Mendies to accompany him on a tour of his ward; any extra investment in highways would be welcomed but there was a need to balance the demands and pressures across all of the council’s services when setting the budget and keep Council Tax rises to a minimum

·       the increased investment of £4m in the highways capital programme was funded thorough additional borrowing, with an estimated additional borrowing of £235k capital funding in 2023/24; there was scope as part of the budget to use £131k to fund capital projects in year which would equate to capital investment of £2.2m – that mechanism could be used to bid for additional highway investment and would be subject to the usual decision making processes

·       Councillor Gwyneth Ellis acknowledged the decline in road conditions in some areas but also the improvements as a result of the extra investment.  Given the extensive process undertaken to inform budget setting and decision making she did not consider it appropriate to decide on allocating specific budget elements for services in this forum and at this stage, and had been disappointed the matter had not been raised previously as part of that comprehensive process

·       it was acknowledged that the weather had an impact on road conditions and there were many roads across the county in poor condition.  The £4m investment had not been a scientific calculation by the service to ensure all roads were in good condition, that would require significantly more funding.  Whilst the service would clearly like more in terms of capital allocation it also understood the limitations of the council’s overall budget situation.  Prior to the £4m allocation the service received around £2.5m which meant that minor roads did suffer because the focus was on those roads that presented greatest risk and most used.  The £4m allocation had enabled a greater focus on minor roads with around £1.5m earmarked for both rural and urban minor roads.

 

Councillor Huw Hilditch-Roberts asked that, for clarity, it be recorded in the minutes that any levelling up funding awarded to the Council had no relevance to the budget setting for 2023/24 which was completely separate.  In response to various other questions raised on the report, the Lead Member and officers clarified that –

 

·       the increased pressures on the rollout of the Universal Primary Free School Meals programme related to the grant for those pupils not eligible for free school meals; due to the data lag that element could not be claimed back from the Welsh Government until the following year when the actual figure was known

·       the increase in the daily recharge rate for project management was in line with the going rate and related mainly to one off costs across the council, mostly grant funded, and unlikely to impact the base budget

·       right sizing care and support and the reduction in number of double-handed care calls was possible due to the use of equipment and adaptations which provided a more dignified and cost effective service; the increase in micro-providers and volunteers in the overall care system was also a positive step, providing greater choice for citizens and a good practice way of working

·       housing benefit write offs generally related to overpayments where assumptions had been made upfront when someone entered the benefit system in order to avoid delays in payment pending data from the Department of Work and Pensions; the Revenues and Benefits Service had performed well under Civica and the Council would build on that work now the service was back in-house.

 

In closing the item, the Leader highlighted the good debate and contributions made to the budget setting proposals which would be considered by full Council on 31 January.  He welcomed the better than expected settlement from the Welsh Government who had recognised the pressures on local government, and paid tribute to the work of the Welsh Local Government Association (WLGA) in that lobbying process and also to the former Leader Councillor Hugh Evans from whom he had inherited, via the WLGA, an open dialogue with the Welsh Government.

 

RESOLVED that Cabinet –

 

(a)      notes the impact of the Draft Local Government Settlement 2023/24;

 

(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 2023/24;

 

(c)      recommends to Council the average Council Tax rise of 3.8% 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 Assessment (Appendix 5 to the report).

 

At this point (12 noon) the meeting adjourned for a refreshment break.