Issue - meetings

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

It was RESOLVED :-

·      To approve the Budget adjustments included in the Standstill Budget as set out in paragraph 3 to 7 of the report in Appendix 1;

·      To approve the standstill budget for 2020/21 of £142,203m and this should form the basis of the 2020/21 revenue budget;

·      To consult with the public and other stakeholders on a proposed increase in Council Tax for 2020/21 of between 4.5% and 5%;

·      After allowing for the proposed increase in Council Tax and the savings to be implemented, should any surplus funding be available, the Executive should determine how to use this surplus funding (as noted in paragraph 10.5);

·      That the Executive should seek the opinion of the public on the proposed budget strategy.

The report of the Director of Function (Resources)/Section 151 Officer incorporating the draft Revenue Budget for 2020/21 was presented for the Executive’s consideration.

The Portfolio Member for Finance reported that whilst the budgetary position for 2020/21 is better than anticipated due to an increased provisional settlement by Welsh Government the financial circumstances remain challenging.  The settlement, in real terms, is only in comparison to the level of Welsh Government provision in 2012/13.   He further reported that Welsh Government assumes that local authorities in Wales are to increase the Council Tax level of 7.1% so as to balance the budget even though a better settlement has been afforded.  The Council’s reserves have reduced so as to meet cost pressures in areas where the demand has been and continues to increase in statutory services such as Adult Services and Education.  The Portfolio Holder considered that these services base budget may need to be reviewed.   He further said that he advised the Corporate Scrutiny Committee held this morning and wished to expressed to the Executive that a prudent approach need to be undertaken in terms of making recommendations with regard to the 2020/21 Revenue Budget. 

The Director of Function (Resources)/Section 151 Officer outlined in detail to the Committee the sections within the report on the proposed revenue budget for 2020/21.  The following matters were highlighted and reported upon:-

·      The budget is prepared on the basis of the assumptions set out in the Medium Term Financial Plan approved by the Executive in September, 2019.  These have been taken into account in calculating the standstill budget for 2020/21;

·      The committed changes and adjustments made to the budget were set out in paragraphs 3.1 to 3.10 of the report;

·      A number of contingency budgets are built into the budget to cover fixed term costs, potential risks that may require funding during the year were set out in paragraphs 4.1 (Table 1).  The improved financial position in 2020/21 allows the Council to reduce the Salary and Grading Contingency as it is not expected that it will be necessary to make significant reductions in staffing numbers in 2020/21;

·      Staff costs – there is uncertainty as regards to the Teachers pay award commencing September 2020 and non-teaching staff as from April 2020 – this is a risk to the budget of the Council with every 1% increase in the non-teaching pay award equating to an additional budgetary burden of £450k in costs;

·      Increased demand for Adult Social Care, with rising numbers of clients across all service types and for 2019/20 the Service is expected to exceed its budget by £1.21m.  The estimated net overspend for Adult Social Care, after allowing for 2 additional Welsh Government grants is £980k and this sum has been identified as the minimum additional funding required to address the budget shortfall.  However, only 1 grant (Social Care Workforce and Sustainability Grant), has been confirmed for 2020/21 and whether the Council will once again receive the Winter Pressures Grant in 2020/21 is yet to be confirmed;  ...  view the full minutes text for item 4