Agenda item

RESOLVED that Cabinet –

(a)       supports the budget proposals for 2013/14 as shown in the appendices and recommends accordingly to full Council, and

(b)       recommends the resulting 2.0% increase in the level of Council Tax for 2013/14 to full Council.

Councillor Julian Thompson-Hill presented the report detailing the budget proposals for 2013/14 and resulting 2% increase in the level of Council Tax.  Budget Saving Proposals for 2013/14 (Appendix 1); Grants transferred into the General Settlement 2013/14 (Appendix 2), and Denbighshire’s Budget 2013/14 (Appendix 3) had been attached to the report.

Members were advised of a lower than expected final settlement from the Welsh Government which included a cut in capital funding which was a significant loss.  The implications on the Medium Term Financial Plan (MTFP) were highlighted together with the savings required over the next three years and the latest forecasts in terms of pressures previously identified.  Reference was also made to –

·         the Welsh Government’s expectation that Schools and Social Care Budgets would be protected from savings which would put additional strain on other services that had to find additional savings to compensate [for 2013/14 approximately 56% of the budget was ring fenced and protected]

·         financial implications arising from the Council Tax Support Scheme

·         an update on the outcomes of the budget workshops held for members in November and December 2012 (regarding savings, priorities and council tax)

·         based on the current proposals the resultant increase in Council Tax was 2% and the base assumption for the future years was that Council Tax would continue to rise at around 2%

During consideration of the report members were pleased to note the transparency in the budget setting process with ample opportunity for members’ input.  The imaginative approach taken to managing finances in such challenging financial times was also commended.  In response to questions Councillor Thompson-Hill and the Head of Finance and Assets (H:FA) advised that –

-       despite protection for schools and social care budgets those services were still expected to make efficiency savings but they would be reinvested back into that service

-       most collaboration savings had been removed from the MTFP because they could not be delivered which put pressure on savings to be made in house

-       there were potentially huge implications arising from the Health Board’s reorganisation of health services but much was unknown at this stage

-       the current budget proposals showed the authority was investing in its priorities and protecting front line services whilst keeping Council Tax as low as possible

-       the Fire Service levy had been confirmed at £70k below the planned level but the Police precept had not yet been set (Councillor Cowie advised that the Police Commissioner would be presenting budget proposals to the Crime Panel the following week)

-       reference to the National Eisteddfod in the savings proposals would be removed as the base funding was provided by the Welsh Government.

Councillor Eryl Williams referred to greater financial challenges to be faced by local authorities in the future and to uncertainty regarding future finances.  He proposed that the level of Council Tax for 2013/14 be increased to 2.5% with the additional revenue to be set aside in a Revenue Relief Fund which would be used to offset future financial difficulties faced by the authority.  He felt such an approach would be prudent in the current economic climate and help safeguard against more dramatic rises in Council Tax in the future.  The proposal was seconded by Councillor Huw Jones.  During consideration of the proposal the H:FA agreed that the Council would continue to face financial challenges for some time to come but advised that reasonable assumptions had been included with the MTFP to address pressures as they became known to the authority.  The Chief Executive spoke against the proposal and felt it sent the wrong message if Council Tax was to be set at a level higher than was needed adding that money had been set aside in reserves and balances to deal with future contingencies.  He stated that 2% was an achievable and responsible level.  Councillor Barbara Smith highlighted that Denbighshire had one of the highest rates of Council Tax and felt the level should be addressed with a view to parity with other authorities.  Whilst recognising that the original assumption for financial planning purposes was for a 2.75% rise, the Leader felt that the proposal to build in a future financial safeguard should have been debated at an earlier stage in the budget planning process.  He was confident that the budget setting was robust and achievable.  Councillor Hugh Irving highlighted that in the current economic climate many residents were struggling financially and agreed a level of 2% to be reasonable.  He believed the Council would be criticised if it set a higher level of Council Tax than was needed.

Upon being put to the vote the amendment to increase the level of Council Tax by 2.5% was LOST and the original proposal to increase the level by 2% was CARRIED.

RESOLVED that Cabinet –

(a)       supports the budget proposals for 2013/14 as shown in the appendices and recommends accordingly to full Council, and

(b)       recommends the resulting 2.0% increase in the level of Council Tax for 2013/14 to full Council.

[Councillors Huw Jones and Eryl Williams abstained from voting on resolution (b) above.]