Agenda item

To consider a report (copy to follow) to provide an update on the latest budget position for 2016/17

The Lead Member for Finance and Assets, Councillor Julian Thompson-Hill, introduced the Budget 2016/2017 report (previously circulated). 

The report provided the latest position with regard to the delivery of the 2016/2017 revenue budget and highlighted the measures being taken as part of Phase 5 of the current two-year budget process.  The report also highlighted the investment that the Council had made in crucial infrastructure and improvements throughout the county over a continuing period of funding reductions.  The report also outlined how the Council’s budget strategy had protected key services whilst managing a challenging financial position.

The Welsh Government was scheduled to publish its own budget on 8 December with the Provisional Local Government Settlement following on 9 December.  This would make the funding position for 2016/17 clearer.  The Provisional Settlement announcement would include a headline figure but the impact of changes to revenue grant funding streams may not be published at the same time.

The late announcement of the Provisional Local Government Settlement would mean that the budget timetable may need to be refined.  The Council had to set its budget in time to allow the production and distribution of Council Tax bills in March 2016.  Depending on the level of Provisional Settlement, it was probable that an extra meeting of the Full Council may be required to finalise the budget in February 2016.

Given the level of uncertainty about the revenue settlement, recent member budget workshops had focussed on a range of proposals that may or may not be required to be implemented for 2016/2017.  In order to maintain momentum and limit risks at the end of the process, it had been explained that a set of measures would be presented to Council for information in December so that the impact on the budget could be noted.

There had been no clear steer as to whether there would be directives to protect schools and other budgets.  There had been a Ministerial pledge since 2011 to protect school budgets in Wales.  To comply with the pledge to “protect” school budgets, the Council should have increased schools funding by £3.4m over the last four years.  In fact, school funding in Denbighshire had increased by £6.3m.

Indepth discussion took place and the following issues were raised:

·       Scrutiny Committee had raised the issue of the Ruthin School review and funding regarding two new schools which were to be built.  What had transpired recently was a new document had been prepared to the Welsh Government which suggested all schemes (21^st Century School, Ruthin Review, and Faith School) be included as one package.  The scheme would be funded 50% by DCC and 50% by the Welsh Government.  An addition £6m from the Welsh Government would be expected towards the package.  The Chair of Communities Scrutiny Committee confirmed he had written to Assembly Members regarding School issues.

·       PFI  Agreement – congratulations were offered following the termination of the PFI Agreement.  Positive steps were expected for the future of the buildings.

·       Clearer presentation of the figures had been requested to include a further breakdown, borrowing and figures for reserves.  All members agreed to the request for a more detailed plan.

·       The 2016/2017 Budget settlement from Welsh Government would be for one year only.  Assurances had been received that following that year, three year settlements were expected.

RESOLVED that Council Members:-

(i)              note the progress made in the delivery of the 2016/2017 budget and the proposed steps to finalise the process

(ii)             note the bulk of the savings made to date in this two year budget process have not imposed cuts to services or increases in charges

(iii)            note the capital investment of almost £200m on completed and planned projects across the county from 2012 out to 2019.