Decision details

The Group Director, Corporate & Frontline Services presented his report to Members which provided Cabinet with information in respect of the 2019/2020 local government settlement, the outcomes of the general budget consultation exercise and feedback from the pre-scrutiny activity undertaken by the Finance & Performance Scrutiny Committee, to assist with Cabinet’s deliberations, prior to constructing the revenue budget strategy for the financial year ending 31^st March 2020, which it needed to recommend to Council, for approval.

Members were referred to Appendix A of the report, which set out a proposed budget from the Council’s Senior Leadership Team, following consideration of the local government settlement, which had been received on the 19^th December 2018. The Group Director advised that the Senior Leadership Team discussion paper contained key elements of a balanced revenue budget strategy for 2019/2020.

Through his report, the Group Director was able to provide Members with details of the potential financial effects on Rhondda Cynon Taf and its Council Tax payers, including an exemplification of a high level budget requiring a Council Tax increase of 3.6%.

Reference was made to the Medium Term Financial planning and Service Transformation Reserve and the Group Director confirmed that the Council have been able to increase the level of transitional funding available and the latest position is that this reserve has now increased to £4.840M (additional in year savings to date of £0.175M).

The Group Director advised of the recent base budget updates with specific reference to potential adjustment for South Wales Fire & Rescue Service Levy and the additional costs of the firefighter pension fund, which if not funded by central government, could be subsequently passed on to constituent authorities.  The Group Director advised that depending on the outcome of this decision the strategy report presented to Council would reflect the higher value for the levy.

Members attention was also drawn to the teachers pension which had not been included in the budget position as confirmation was still awaited on the quantum and timing of funding to cover the cost implications.  It was added that if no confirmation is received prior to the final budget setting then an additional ‘temporary’ allocation would be made from transitional funding or other earmarked reserves to cover this and any impact from an amended Fire Service levy.

The Group Director concluded his report by drawing Member’s attention to the Consultation process that had been undertaken in relation to the budget, with Members being advised that the consultation ran from the 5^th November, 2018 to the 17^th December, 2018 and engaged over 4000 people.  The Group Director also referenced the Pre-scrutiny that had been undertaken in respect of the Budget.

The Leader spoke on the proposed budget strategy and commented on the positive position the Council were in due to prudent managing of the budget throughout the year, efficiency making and remodelling of services.  The Leader added that Rhondda Cynon Taf’s Council Tax would be one of the lowest in Wales, advising Members of recent Council Tax announcements in adjoining local authorities.  The Leader highlighted that the proposed figure of 3.6% was lower than some of the suggested Council tax settings suggested by the public during the consultation process. 

The Leader referenced the school budget uplift adding that due to the improved final settlement and the priority to support schools the Council were now proposing a £5.200M cash uplift.  He also referenced the uncertainty with the teachers’ pension and the Firefighters pension and stressed that the issues had been raised with Welsh Government.

The Deputy Leader also addressed her concerns in respect of the teachers’ pension which had been highlighted at the recent meeting of the School Budget Forum.  The Deputy Leader continued by speaking  positively of the budget consultation process and the valuable feedback gained through the process and the opportunity for Cabinet to speak with residents of RCT on what services matter to them.  The Deputy Leader also took the opportunity to thank the Finance & Performance Scrutiny Committee for the pre-scrutiny undertaken in respect of the budget strategy.

Following discussions it was RESOLVED:

1.    To note that the procedures relating to revenue budget construction, the budget consultation process, and reporting to Council, are laid down in the “Budget and Policy Framework”, contained within the Council’s Constitution.

2.    To adopt the draft 2019/2020 revenue budget strategy, detailed in the Discussion Paper labelled ‘Appendix A’, as the basis of the revenue budget strategy for the financial year ending the 31^st March 2020, that it would wish to recommend to Council, subject to consideration of the results of the general budget consultation exercise and feedback from pre scrutiny by the Finance & Performance Scrutiny Committee.

3.    The draft timetable for setting the 2019/2020 revenue budget, reproduced at Appendix A2 of the report. 

4.    That the Council continues to support the medium term financial strategy aimed at maximising ongoing efficiency in service delivery, targeted service transformation and other changes that maintain the financial integrity of the Council whilst still aiming as much as possible to protect jobs and key services.

5.    To authorise the Group Director for Corporate and Frontline Services to incorporate any further decision of Cabinet and Council, as appropriate, into the Budget Strategy with a consequential adjustment made to the use of transition funding.