Agenda item

To consider a report by the Head of Finance and Assets (copy enclosed) which provides an update of the latest position on the process of setting the Council’s budget for 2014/15, and seeks consideration of the next batch of savings to be proposed to County Council.

 

A report by the Head of Finance and Assets, previously circulated, provided an update of the latest position on the process of setting the Council’s budget for 2014/15, and sought consideration of the next batch of savings to be presented to County Council.

 

The Corporate Governance Committee had an oversight role of the budget process, and Appendix 1 included details of the savings proposals.

 

The draft Local Government Settlement for Wales 2014/15 had been published on the 16^th October, 2013.  The headline figures had been:-

 

·                     Average cash reduction across Wales of -3.5%

·                     Denbighshire had the worst settlement in Wales at -4.6%

·                    A damping mechanism had been applied to lessen the impact in 2014/15 but this would have an impact in 2015/16

 

Reference was made to uncertainties around some of the detail within the Settlement, specifically relating to the Council Tax Reduction Scheme funding and the treatment of additional Pupil Deprivation grant funding in relation to the requirement to protect school budgets.  It was hoped that details would be clarified following a meeting of the Society of Welsh Treasurers on the 25^th October.  In addition details were awaited of an actuarial review of the Clwyd Pension Scheme and it was anticipated that a review would increase employer’s costs.  The draft Settlement and other pressures had meant that a savings target of approximately £8.5m had been set, though this may change as details become clearer. 

 

The budget process had resulted in savings of £1.7m for 2014/15 being approved by Council in September, and on the 21^st October, a Member Workshop presented additional proposals amounting to £4.5m.  Lead Members had provided details of the savings, the impact and an assessment of risk and these would be presented to Council in December for approval.  Further savings to balance the 2014/15 budget could be considered separately at the next Member Workshop in December, and be presented to Council for approval in January or February 2014.

 

It would be important to ensure that Members were afforded the opportunity to raise questions or concerns about any of the savings proposed for approval in Appendix 1.  The Lead Member and Head of Finance and Assets had agreed to discuss any of the proposals in detail prior to their presentation to Council.  The budget underpinned the delivery of all priorities and Council services, and the Appendix identified savings of £4.5m for 2014/15.  Savings of £1.7m had previously been agreed and the saving target for 2014/15 could be £8.5m.

 

A copy of the current update was presented to the Committee at the meeting by the HFA and the following issues and salient points were highlighted.  In reply to a question from the Chair, the HFA explained that despite the statement in the Finance Section of the Welsh Government Website LA’s were having less discretion over how they spent their money, particular reference being made to the disparities related to ring fencing, the protection of schools and the directive from WG to increase funding to schools by 0.9%.  Other areas which influence the budget were summarised by the HFA, which included:-

 

-               the impact of the Council Tax Reduction Scheme.

-              the number of the County’s population in receipt of benefits, the type of claimants and level of support provided.

-               uncertainty surrounding the Council Tax Scheme.

-              the withdrawal of ring fencing for Social Services for the coming financial year.

-              a Local Government proposal to Welsh Government for a review of grants received to achieve greater flexibility.

-               the impact of the Pupil Deprivation Grant.

-              a proposed increase of 2% in the Fire and Rescue Authority budget.

-              the consequences of an increase in the life expectancy of Clwyd Pension Fund claimants.

-              details of the Bedroom Tax, Welfare Reform not having had as significant impact as anticipated.

-              HRA, housing subsidy date of implementation had changed from April, 2014 to April, 2015.

-               details of the North Wales Police precept were not yet available.

-              confirmation provided that there would be no impact on the budget following the decision to postpone the closure of St Brigid’s.

 

The HFA provided details of the proposed timescales regarding the budget process and highlighted the difficulties encountered in striking a balancing between the provision of information and the timing of meetings.  He explained that the report being considered at this meeting would be presented to Council on the 3^rd December, 2013 for approval, and the Workshop scheduled for the 9^th December, 2013 would focus on addressing the £2m disparity.  The Chair felt that to ensure debate was not stifled papers for consideration should be circulated prior to the date of the Workshop.  In response to a request from Councillor M.Ll. Davies, it was agreed that the papers from the recent Workshop be circulated to all Members who were not in attendance.  The importance of ensuring Member attendance at the forthcoming Workshop, and subsequent feedback, was emphasised.

 

The HFA agreed to provide a response to a question from Councillor P.C. Duffy on whether the Council were spending less on repairs to their housing as a result of the recent investment.

 

Following further discussion, it was:-

 

RESOLVED – that the Corporate Governance Committee:-

 

(a)          receives the report and notes the latest position and proposed next steps, and

(b)          endorses the next phase of saving proposals being taken to County Council for formal approval in December, 2013.

   (PM to Action)