Agenda item

To consider a joint report by Councillor Julian Thompson-Hill, Lead Member for Finance and Assets and the Head of Finance and Assets (copy enclosed) seeking Council’s approval of the budget for 2013/14 and the resulting increase in the level of Council Tax for 2013/14.

Councillor Julian Thompson-Hill presented the report detailing the budget proposals for 2013/14 and resulting 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); Denbighshire’s Budget 2013/14 (Appendix 3) and the Equality Impact Assessment (Appendix 4) 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, particularly in light of recent changes to the regulations resulting in a windfall of at least £300k for the year together with possible options for its allocation

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

· based on current proposals the resultant increase in Council Tax was a maximum 2% and the base assumption for future years was that Council Tax would continue to rise at around 2%.  Formal approval for the level of Council Tax would be sought at the next meeting.

 

Councillor Thompson-Hill advised that it was another challenging financial year but the proposed budget was realistic and deliverable allowing investment in priorities and protecting front line services from major reductions.  He took the opportunity to thank the Head of Finance and Assets (H:FA) and his team for all their hard work.  Members had been heavily involved in the budget setting process and the H:FA thanked them for their engagement and political steer.

 

During consideration of the savings proposals members raised questions on the savings targets relating to individual services.  Assurances were sought over the removal of the essential car user allowance and outcome of the staff ballot and that day care services would not be affected as a result of the savings in care services.  In responding Councillor Thompson-Hill and the Head of H:FA  –

 

-       advised that initial savings proposals had included day care provision which had since been removed in light of members’ concerns

-       updated members on the negotiations with Trade Unions to remove the essential car user allowance which was due to be phased in over the year

-       reported upon the carbon reduction scheme advising that the Council would be assessed in 2014/15 and a favourable outcome was expected

-       elaborated upon projects contributing to modernising the Council including printer rationalisation, better use of space, reductions in mileage and stationery, procurement, sickness absence and confirmed that the modernisation agenda would feature strongly over the next few years

-       referred to systems thinking being used to improve processes and moving from manual to electronic systems

-       a saving of £100k had been possible for recycling parks following a renegotiation of the management contract with a private contractor

-       elaborated upon the Planning and Public Protection restructure following the decision not to proceed with full collaboration with Conwy County Borough Council which would result in the removal of long term vacant posts

-       indicated that capacity for in house fostering would be developed to ensure greater flexibility and less reliance on external fostering

-       explained the Council had worked closely with all arms length companies to ascertain on an individual basis whether a reduced subsidy could be sustained.  Consequently savings for the Scala and Pavilion Theatre had been deferred

-       advised that during the members’ session on financing the Corporate Plan an agreement was made that any windfalls during the year would be allocated to strategic investment

-       explained the implications arising from the redesign of the street cleansing service and the merger of teams in Environmental Services

-       reported upon the level of Council Tax in comparison with other local authorities.

 

During debate Councillor Joan Butterfield expressed concern regarding two savings proposals for Environmental Services, namely (1) DB1 – Increase in charges for certain services such as bulky waste collection, which she believed would impact on the poorest members of the community and likely result in increased fly-tipping, and (2) DB13 – Cemeteries Charging, which she believed to be discriminative and would also impact on those living in poverty.  Consequently she proposed an amendment, seconded by Councillor Cefyn Williams, that those savings be removed from the budget.  Councillor Thompson Hill explained that the increase in charges would not result in a cut in services but would bring the fees in line with neighbouring authorities.  Councillor David Smith added that the savings for individual budgets had been considered at length during the service challenge process.  Members debated the amendment and were advised that the removal of those savings would likely result in Environmental Services being asked to find them from elsewhere within the service.  Upon being put to the vote the amendment was declared CARRIED.

 

Members considered the merits of the various options detailed in the report for the allocation of the £300k windfall arising from changes to the Council Tax regulations.  Councillor David Simmons proposed, seconded by Councillor Joan Butterfield, that £200k be transferred into general balances to be used for services pressures arising during the year and £100k be allocated to Welfare Reform support.  Councillor Barbara Smith reminded members that funding would be available from the Welsh Government to support the housing element of welfare reform and that other elements of welfare reform would either be phased in over time or implemented in the future.  Consequently she questioned the need for extra funding for welfare reform support at this time and suggested an allocation to strategic investment.  Councillor Hugh Evans agreed there would be no merit in allocating funding to welfare reform support at this time and proposed an amendment, seconded by Councillor David Smith, that £300k be allocated to strategic investment in order to progress the Corporate Plan.  Councillor Colin Hughes referred to the Council’s welfare partners such as the Anti-Poverty Network who was also facing financial difficulty due to the loss of core funding and suggested consideration be given to increasing their funding in light of the surge in those needing welfare advice.  Councillor Thompson-Hill welcomed the proposal to allocate £300k to strategic investment which he believed would ensure the best long term development from the funding and reminded members of the previous agreement to allocate windfall funding to strategic investment.  He did not consider there to be a need to put additional funding into general balances.

 

In responding to the debate the H:FA advised that funding to address pressures during the year had been included within general balances which he considered to be a reasonable level.  He added that if funding was allocated to strategic investment in the first instance it could be reallocated by members in future providing there was an overriding need.  The H:FA confirmed that approximately £2m would be made available nationally from the Welsh Government to support the transitional costs of welfare reform and whilst £1m would be needed to cover IT costs, funding would be available which could be shared with partners such as the Citizens Advice Bureau and Benefits Advice Shop.  In light of the advice provided by the H:FA Councillor David Simmons withdrew his proposal for allocation of the windfall.  The H:FA added that he chaired the Welfare Reform Group and members would be welcome to observe those meetings if they had outstanding concerns in that regard.  After further discussion it was –

 

RESOLVED that Council approves –

 

(a)       the budget proposals for 2013/14 as shown in the appendices subject to the removal of –

·         DB1 Increase in Charges for Certain Services (e.g. bulky waste) - £5k

·         DB13 Cemeteries Charging - £10k, and

Environmental Services be required to make alternative savings of £15k;

 

(b)       the allocation of the £300k windfall arising from changes to the council tax regulations to Strategic Investment (Option A detailed in the report) with expenditure being agreed by members, and

 

(c)        the resulting 2% increase in the level of Council Tax for 2013/14.

 

At this juncture (11.40 a.m.) the meeting adjourned for a refreshment break.