Agenda item

To consider a report by the Chief Finance Officer, which provides an update on the process to deliver the revenue budget for 2016/17 (copy enclosed).

A report by the Chief Finance Officer (CFO), which provided an update on the process to deliver the revenue budget for 2016/17, had been circulated previously.

Councillor J. Thompson-Hill, assisted by the Chief Accountant (CA), provided a detailed summary of the report which included the following information:- 

·                     The latest progress with the budget setting process had been presented to a Member Budget Workshop on the 14^th December, 2015.  An outline of the range of savings proposals considered had been outlined.

·                     The draft Welsh Government budget and the Provisional Settlement to local government had been announced later than usual this year as a consequence of the timing of the UK Government’s Autumn Spending Review.  This had been factored into the budget planning process and resulted in the package of proposals being taken for approval in December.  The package totalling £1.2m contained efficiency savings and technical adjustments, but did not include any proposals to cut services or increase charges.

·                     The implications of the Local Government Settlement for 2015/16 had been summarised in the report, with the Settlement being much better than expected.

·                     A report to Council in December had detailed the latest budget position and assumptions indicated a remaining budget gap of £2m.  Details had been provided at the budget workshop with a summary included in the report.

·                     Details of the changes to the Settlement value, which allowed for a proposal to lower the level of proposed Council Tax rise from 2.75% to an average of 1.5%, had been included in the report.

·                     The assumptions applied had resulted in a positive funding position of £480k, with the Settlement for 2016/17 having been better than expected for one-year.  A table summarising the budget planning position for future years had been provided.  Details of risks had been outlined, together with, the actions implemented to mitigate them.

·                     The Final Local Government Settlement would not be published until March.  However, assurances had been provided that there should be no negative movement between the Provisional Draft and Final Settlement values.  The final Welsh Government budget would be put before the Senedd on the 8^th March.

·                     The Freedoms & Flexibilities process had ended with the setting of the 2016/17.  Monitoring of budget performance would continue to be reported to cabinet, with the Cutting Our Cloth Task & Finish Group monitoring the impact of budget decisions.

·                     It was confirmed that a new budget process would be developed for 2017/18.

·                     The final phase of the two-year Freedoms & Flexibilities budget process had been presented.  The vast majority of savings, over 80%, had been efficiency or modernisation savings resulting in a less significant impact on services to the public.

·                     It was explained that the aim of the budget process had been to ensure that the Council delivered a balanced budget.  It was likely that funding reductions to LA’s in Wales would continue in the medium term, with budget decisions becoming more difficult and requiring a longer lead-in time to deliver.

Councillor Thompson-Hill outlined the timescales pertaining to the budget reporting process and sought guidance regarding the timing of the submission of future reports.  The Chair felt that it would be beneficial if the current process of the inclusion of a standard budget process business item on each agenda of the Committee be continued, along with the provision of Member Budget Workshops.  He also felt there was a need to increase consultation with the public and acknowledged that there were differing views regarding the adoption of a new consultation process.  It was suggested and agreed that the respective Political Groups be contacted with a view to encouraging Members to put forward their views and suggestions in respect of the budget process.  Councillor S.A. Davies expressed his support for the continuation of the current process, and highlighted the need and importance of scrutinising the adopted mechanisms.  Mr P. Whitham supported the view expressed and suggested that failure to continue to progress could present a corporate risk to the Authority.

The HLHRDS outlined the possible technical issues and constraints which could arise around finance with regard to the progress of the Local Government (Wales) Bill, and the subsequent merging of Local Authorities.

Mr P. Whitham suggested that as the report presented the final phase of the two-year Freedoms & Flexibilities budget process a post completion review should be undertaken to ascertain the aims, achievements, successes and lessons learned with regard to assisting with future progress.  The Chair made reference to the Cutting Our Cloth Task and Finish Group which monitored the impact of the budget decisions taken as part of the process, this being achieved through evidence gathering and examining the mechanisms utilised and adopted.

RESOLVED – that the Corporate Governance Committee:-

(a)          receives and notes the contents of the report on the latest update.

(b)          request that the Political Groups encourage Members to put forward their views, and

(c)          agrees that a further update report be presented to the March, 2016 meeting of the Committee.

        (RW, SG, GW to Action)