Agenda and minutes

To receive any declaration of interest by any Member or Officer in respect of any item of business.

No declaration of interest was received.

To present the report of the Scrutiny Manager and the Director of Function (Resources)/Section 151 Officer.

The report of the Scrutiny Manager was presented for the Committee’s consideration. The report outlined the context to the 2025/26 Budget setting process along with the key issues and questions for Scrutiny in evaluating the Executive’s initial revenue budget proposals. The report of the Director of Function (Resources)/Section 151 Officer to be presented to the 21 January, 2025 meeting of the Executive setting out the provisional revenue budget for   2025/26 and related considerations was attached at Appendix 1.

The report was presented by Councillor Robin Williams, Deputy Leader and Portfolio Member for Finance and Housing who highlighted the better than expected provisional settlement for Local Government in Wales announced on 10 December 2024 which showed an increase of £410.3m in the overall level of funding for Wales equivalent to a 7.2% increase in cash terms. The draft settlement had resulted in a 3.59% increase for Anglesey (0.7% below the Welsh average and the 16^th highest increase from the 22 authorities) which after the main budget changes have been accounted for as per section 4 of the budget report leaves a funding deficit of £10.791m before any change in Council Tax. Closing the funding gap through Council Tax alone would mean raising Council Tax by 20.6% which the Executive deems unrealistic and using the Council’s reserves to make up the difference would lead to the depletion of the reserves. Neither can a deficit on this scale be met by implementing savings.  The Executive is therefore proposing that the shortfall be made up by a combination of budget savings, use of reserves and Council Tax increase.

Councillor Robin Williams said that although the increase in the settlement is to be welcomed it is not sufficient to meet all the Council’s budgetary pressures chief of which are National Insurance costs with there being some uncertainty around additional funding to meet those costs and its timing, and service demand especially in Children and Adult Services which are subject to significant changes in client demand meaning it is important that the Council maintains its prudent approach to financial management and avoids over committing its reserves. The Executive is keen to protect the schools budget for 2025/26 having implemented a cut in the budget in 2024/25 as well as the corporate trainee budget and to maintain the premium on empty and second homes at its current level of 100%. The draft budget proposals being put forward by the Executive for public consultation include an increase of 9.5% in Council Tax (to include a Fire Service levy of 0.65%), the provision of additional funding to meet demand pressures in Children’s and Families Services, protection for school budgets with cost pressures being funded in full, use of Council Tax premium to  support first time buyers, additional funding for social care providers to enable them to meet additional staff costs in 2025/26, service budget reductions,  and the draw down of £2m from Council reserves to balance the budget. The outcome of the public consultation will be reported to  ...  view the full minutes text for item 2.

To receive a progress update by the Chair of the Panel.

Councillor Geraint Bebb, Chair of the Finance Scrutiny Panel reported on the outcome of the Panel’s two meetings held on 19 December, 2024 and 9 January 2025 to consider the 2025/26 initial draft Revenue Budget proposals as referred to in the narrative on item 2 above.