Issue - meetings

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

It was resolved –

·      To approve the initial proposed budget for 2024/25 of £184.219m.

·      To approve a proposed increase in Council Tax of 9.78%, plus 1.12% to cover the Fire Levy making a total of 10.9% and taking the Band D charge to £1,592.37.

·      To formally propose an increase in the premium on second homes from 75% to 100%.

·      That £4.425m be released from the Council’s general balances and earmarked reserves in order to balance the 2024/25 revenue budget.

The report of the Director of Function (Resources)/Section 151 Officer incorporating the initial draft Revenue Budget proposals for 2024/25 was presented for the Executive’s consideration.

Councillor Robin Williams, Deputy Leader and Portfolio Member for Finance presented the report saying that Welsh Government’s provisional settlement showed an increase of £169.8m in the overall level of funding for Wales equivalent to a 3.1% increase in cash terms  The draft settlement has resulted in a 2.5% increase for Anglesey (0.6% below the Welsh average and the 17^th highest increase from the 22 authorities) which after the main budget changes have been taken into account leaves a funding deficit of £14.391m before any change in Council Tax. Bridging this gap through Council Tax alone would mean raising Council Tax by 30% which the Executive believes is unacceptable and unrealistic. The Executive is therefore proposing that the shortfall be made up by a combination of budget savings of £4.773m (funding of schools at 2.5% below inflation, workforce reductions, other budget savings as per Table 4 and Appendix 3 of the report and use of Council Tax Premium to support service costs), the use of £4.425m of reserves (£1.6m from General Balances and £2.825m from Earmarked Reserves) and a Council Tax increase of 9.78% plus an additional 1.12% to fund the increase in the Fire Service Levy (noting that based on the latest information, this could  change)  making a total rise of 10.9%. This would take the Band D charge (excluding Police and Town/Community Council precepts) to £1,592.37, an increase of £156.51 or £3.01 per week.

Councillor Robin Williams whilst emphasising that the level of increase int the Council Tax is not something the Executive is comfortable with referred to the difficult financial context and uncertain financial climate which has made preparing the provisional revenue budget for 2024/25 a challenging task. The Council is legally required to deliver a balanced budget and despite the proposed Council Tax increase which is at a similar level to indicative increases by other authorities, Anglesey remains one of the lowest Council tax charging authorities in Wales having exercised prudent financial management in previous years which has strengthened its financial position and is helping it deal in the short-term with the challenges it is facing. The draft Budget proposals if approved, will subsequently go out to public consultation for a two-week period.

The Director of Function (Resources)/Section 151 Officer took the opportunity to explain the budget setting process and the options available to the Council in setting a balanced budget which is a legal requirement and he highlighted the limits and constraints on the sources of funding open to the Council. The majority of the Council’s funding comes from Welsh Government in the form of the Revenue Support Grant which the Council can spend as it wishes to meet local needs and priorities. The grant is distributed according to a funding formula based on various datasets including population, number of people in receipt of benefit and school pupils etc which  ...  view the full minutes text for item 5