Agenda and minutes

The Chair welcomed everyone to the meeting and he extended a particular welcome to Mrs Wenda Owen to her first meeting of the Corporate Scrutiny Committee as the representative of the Church in Wales.

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

Councillor Sonia Williams declared a personal interest only as the wife of the Portfolio Member for Finance.

Councillor Jeff Evans (not a member of the Committee) declared a personal interest with regard to the Fire Service Levy as a Council representative and member of the North Wales Fire Service Authority.

Councillor Dylan Rees (not a member of the Committee) declared a personal interest only with regard to the Fire Service Levy as a Council representative and Chair of the North Wales Fire Service Authority.

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

The report of the Scrutiny Manager was presented for the Committee’s consideration. The report outlined the context to the 2024/25 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 23 January, 2024 meeting of the Executive setting out the provisional revenue budget for   2024/25 was attached at Appendix 1.

Councillor Robin Williams, Deputy Leader and Portfolio Member for Finance provided an overview of the budget process and implications of the provisional Local Government Settlement for 2024/25 which was issued by Welsh Government on 20 December 2023. The 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 had 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 Director of Function (Resources)/Section 151 Officer provided additional context saying that the financial challenges described in the report are not unique to Anglesey. Several local authorities in England have issued Section 114 notices whereby the Chief Financial Officer gives notice that in the financial year, it is expected that the expenditure incurred by  ...  view the full minutes text for item 2.

To receive a report by the Chair of the Panel.

Councillor Geraint Bebb, Chair of the Finance Scrutiny Panel reported on the outcome of the Panel’s three meetings in the week commencing 8 January 2024 to consider the 2024/25 initial draft Revenue Budget proposals as referred to in the narrative on item 2 above.