Issue - meetings

To submit a report by the Head of Function (Resources)/Section 151 Officer.

It was resolved –

·        That a sum of £125k is included in the final budget to fund the Energy Island Team and that this sum is maintained in the budget for as long as the Team is required as set out in paragraph 3.2 of the report.

·        That grants incorporated into the Aggregate External Funding (AEF) and the additional funding for new responsibilities are allocated to the appropriate budgets as allowed for in the standstill budget as per paragraphs 5.4 and 5.5 of the report.

·        To confirm that a contingency budget of £600k to cover any additional pay costs is required (as allowed for in the standstill budget). The value of this contingency to be reviewed prior to determining the final budget proposals (paragraph 6.1 of the report).

·        To consult with the public that an additional 1% increase in Council Tax above the 4% rise set out in the Medium Term Financial Plan is charged and that the funding is set aside to fund additional demand pressures in Social Services as per paragraph 6.5 of the report.

·        To approve the standstill budget for 2018/19 of £132.337m and that this should form the basis of the 2018/19 revenue budget (paragraph 7.1 of the report).

·        That the sum allocated to housing projects by means of the empty homes and second homes premium remains at the 2017/18 level as per paragraph 9.2 of the report.

·        That the Executive should seek to make sufficient savings in 2018/19 to balance the revenue budget without resorting to the use of general reserves and to ensure that the required savings in 2019/20 are achievable (paragraph 9.6 of the report).

·        That the Executive should seek the opinion of the public on the proposed savings and ask for suggestions for income generation.

·        That the Head of Function (Resources) and Section 151 Officer in his formal response to the statement on the provisional revenue funding settlement seek clarification of the Welsh Government with regard to  Anglesey’s allocation of the additional funding of £42m and £62m on an all Wales basis to increase the school and social care elements respectively.

·        That the Leader of the Council write to the Welsh Government to express the Executive’s concern over the lack of transparency in relation to a reduction in some capital grants which have a knock-on effect on the revenue budget e.g. waste and transport as well as the lack of clarity in relation to the stated increase in provision for the school and social care elements as referred to above.

The report of the Head of Function (Resources) and Section 151 Officer on the draft Revenue Budget for 2018/19 was presented for the Executive’s consideration.

The Portfolio Member for Finance reported that the initial draft proposals for the 2018/19 Revenue Budget bring the first phase of the budget setting process to a close. This has involved substantial input by Officers and Elected Members in service review meetings and budget workshops which has resulted in the identification of approximately £3.3m of savings. The preparatory work has been challenging with the Council still facing a potential £2m budget shortfall in 2018/19 taking into account all the various pressures it has to contend with in the form of pay inflation, general inflation, national living wage, reduction in grants and others. The schedule of draft savings proposals contains a number of options thereby allowing some degree of flexibility with regard to the decisions that have to be made. It is important that the Council presents a balanced budget for 2018/19 not least because of the financial challenges that are likely to arise in the subsequent years for which the Council must be prepared. The Welsh Government’s announcement of the provisional local government funding settlement although better than expected for Anglesey, still represents a reduction of 0.1% on the 2017/18 settlement. After all the changes, adjustments and new responsibilities have been considered the standstill budget for 2018/19 is £132.337m, an increase of £6.179m on the 2017/18 final budget meaning that the Council in order to be able to balance the budget, will have to meet all the needs from within the services either through cuts, fee increases or further efficiency savings. The proposals include an increase in Council Tax of 4% plus an additional 1% to fund demand pressures within Social Services. The public consultation on the budget proposals will commence forthwith after this meeting and will last until the end of December; the feedback from this process as well as the final settlement figures by Welsh Government will shape the final budget proposals that will be presented to the Executive, to Scrutiny and thereafter to the Full Council for its approval at the end of February, 2018.

The Head of Function (Resources) and Section 151 Officer said that despite the provisional settlement being better than that projected in the Medium Term Financial Plan meaning that the funding gap is £2m instead of £4m, there remain significant risks to the budget. These include pay related pressures – there are particular pressures on public sector pay and if these are not met by Central or Welsh Government, then the costs will fall to the Council. The current 2017/18 budget is forecast to be overspent by approximately £2m mainly due to demand led pressures in Children’s Services; the standstill budget does not make provision for this overspend so work will have to be done to bring the costs of those services which are overspending back into line with the budget. The impact of Brexit on the  ...  view the full minutes text for item 4