Agenda item

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

The report of the Director of Function (Resources)/Section 151 Officer which set out the Executive’s provisional revenue budget for 2026/27 was presented for consideration.

Councillor Robin Williams, Deputy Leader and Portfolio Member for Finance, Corporate Business and Customer Experience presented the report noting that the initial draft budget proposals had been fully discussed at last week’s meeting of the Corporate Scrutiny  Committee. The funding increase for Anglesey for 2026/27 is 4.2%. However, due to the   datasets on which the allocation formula is based, this represents one of the lowest settlements of councils in Wales. It falls below the average increase of 4.5% with the highest - Newport Council, receiving 6.1%.

The Council continues to face rising demand, particularly in Adult and Children’s social care as well as pay pressures linked to the National Living Wage and Real Living Wage both of which are increasing at a rate above CPI inflation. The draft budget proposes an initial total budget of £207.023m, a Council Tax increase of 4.8% plus 0.3% for the Fire Service Levy, resulting in a total increase of 5.1%, taking the Band D charge to £1,792.98. It also proposes maintaining the second and empty homes premium at 100% and releasing £1.685m from the Council’s general balances and earmarked reserves to achieve a balanced budget for 2026/27. No significant changes to these figures are expected before the final budget proposal is submitted to Full Council on 5 March 2026.

The Director of Function (Resources)/Section 151 Officer reported that the final settlement received last week is £5,962 higher than the figure quoted in the report and the final budget proposal will be adjusted accordingly. The stated Council tax increase does not include the North Wales Police or Town and Community Council precepts, which will be added separately. 

Councillor Jeff Evans, Chair of the Corporate Scrutiny Committee reported on the committee’s 21 January 2026 meeting at which members considered the draft revenue budget report and proposals. The committee held a full and frank discussion on the Council’s finances and how to balance the budget with contributions also invited from non-committee members. Particular attention was given to the Council’s reserves, the premium on empty and second homes, and the proposed increase in Council Tax. After seeking assurance on a range of questions and considering the responses provided by the Portfolio Member and officers, the committee had resolved to support the initial draft budget proposals for 2026/27 as presented and to recommend them to the Executive.

The Executive expressed its thanks to the Corporate Scrunty Committee for the in-depth discussion at last week’s meeting. Executive members acknowledged the significant work involved in developing the budget, noting that it is a lengthy process involving numerous meetings and challenges, beginning almost immediately after the previous year’s budget is approved. Members recognised the pressures facing some service areas and welcomed the  additional funding allocated to meet those needs. They also noted that the budget seeks to make investments where possible without putting undue burden on Anglesey residents, while maintaining core services. There was further recognition of the continued funding for non-statutory services valued by many residents, such as Môn Actif.

An Executive member raised a query regarding the proposed £364,200 bid for cyber security which was considered high for its stated purpose and requested sight of the detailed business plan supporting the bid. It was also suggested that the £81,900 investment proposed for data management and analysis appeared low given the Council’s ambition of becoming a more data driven organisation.

The Chief Executive clarified that a paper is being prepared for circulation to Executive members before further steps are taken. While not a full business plan, it will set out information and justification for the cyber security funding bid. Further detail has been requested on how the investment will support compliance with the Cyber Assessment Framework  and strengthen security and business continuity. He reaffirmed that although the Council is committed to becoming more data driven, decisions must remain proportionate and balanced. He also referred to the newly appointed Head of Digital, Performance and Modernisation who will review this area and will advise on any other steps or resources required, or whether existing resources can be used differently.

It was resolved to approve the following –

·      The initial proposed budget for 2026/27 of £207.023m.

·      A proposed increase in Council Tax of 4.8%, plus 0.3% to cover the Fire Levy = a total of 5.1%, taking the Band D charge to £1,792.98.

·      To formally propose to maintain the premium on empty and second homes at 100%.

·      That £1.685m is released from the Council’s general balances and earmarked reserves in order to balance the 2026/27 revenue budget.