Decision details

The Director, Finance and Digital Services provided the Cabinet with information in respect of the 2020/2021 local government settlement and the outcomes of the budget consultation phase 1 exercise, to assist with deliberations in formulating the revenue budget strategy for the financial year 2020/21.

The Director drew Members’ attention to Appendix A of the report, where a discussion paper had been prepared by the Council’s Senior Leadership Team in response to the 2020/21 Local Government Settlement. The officers had due regard to the new draft Corporate Plan “Making a Difference” 2020-2024, when formulating the proposals set out in the report. The report detailed officer’s views, which is to levy the Council Tax for 2020/21 at a level which balances the desire for fair and equitable service provision, with the need to recognise the impact that excessive tax burdens can have on local households.

The Director spoke of the Provisional 2020/2021 Local Government Settlement, which projected RCT Council’s increase in resources to be set at 4.5%. It was explained that, whilst the Council’s overall financial position remains sound, its level of General Fund Balances are not excessive. Therefore, it must retain its focus on holding a minimum level of General Fund Balances of £10M, in order to mitigate any risk of future budget instability. Alongside this, there is the opportunity to pragmatically use the Medium Term Financial Planning and Service Transformation Reserve as transitional funding without compromising the Council’s financial stability, or reducing our General Fund Balances below £10M.

In respect of setting the level of Council Tax, the Director, spoke of reasonable and approach, which would balance the impact upon services and the ability of the public to pay. He continued by informing the Cabinet of the feedback from Phase 1 of the consultation process, which sought the views of the Finance and Performance Scrutiny Committee, residents and stakeholders in relation to the key strategic building blocks used to construct the Council’s budget. Members noted that the original modelled proposal was to increase Council Tax in 2020/21 by 3.00%, but it was proposed that Council Tax be increased by 2.85% instead, which would increase the remaining budget gap by £0.132M.

The Director drew Members’ attention to Section 8 of the Senior Leadership Team report where the 2020/21 Budget proposals were set out for Cabinet consideration. The proposals sought to continue to protect the frontline services and prioritise key areas, such as the School’s Budget (ISB) increase from £148.9M to £161.6M, an increase of £12.7M, or 8.5%.

The Director provided detail into the following proposals:

·         NDR Local Relief Scheme   

·         Youth Engagement / Youth Offending

·         Paddling Pools

·         Prudential Borrowing for Investment in our Infrastructure

·         Supporting the Muni Arts Centre

·         Fees and Charges

·         Home to School Transport Re-tender Savings

·         Council Tax Reduction Scheme (CTRS)

·         Supported Accommodation Strategy and Savings

The Director concluded by informing the Cabinet that should they be minded to approve the proposals before them, Phase 2 of the consultation would commence with immediate effect. The draft Budget Strategy would be presented to Cabinet for approval on 20^th February 2020 and then to Council for ratification on 4^th March 2020.

The Leader took the opportunity to thank the Senior Leadership Team, finance officers and service managers for the robust report, which would allow the Council to further reduce the budget gap, whilst maintaining or increasing key services for the residents of Rhondda Cynon Taf. The Leader was pleased to note that the proposals showed the largest cash increase for schools at almost 13M, 9.3M increase for social care, 13% increase in the youth provision budget and £50,000 for paddling pools. The Leader advised that whilst significantly investing in its services, RCT had proposed possibly the lowest increase in Council Tax in comparison to its neighbouring Local Authorities, where service cuts were still being proposed.

Referring to the Phase 1 consultation feedback, the Leader advised that 80.8% of residents indicated that they would pay a 3% increase in Council Tax to maintain the current level of services, and that the proposed increase was in fact 2.85%.

The Cabinet Member for Corporate Services also took the opportunity to thank the officers for the comprehensive report. The Cabinet Member welcomed the proposal, commenting that although under significant pressures, the Council remained focussed on uplifting areas such as schools and youth provision.

The Deputy Leader spoke of the consultation process and was pleased to note that 90% of the residents consulted agreed on the 5 key priority areas; and went on to thank OPAG, the County Youth Forum and the Disability Forum for their valued input. The Deputy went on to speak of the investment into the Muni Arts Centre, YMCA and Taff Vale developments, which would contribute to making Pontypridd a vibrant town centre.

Discussions ensued around the proposal to include £50,000 in the Budget Strategy for paddling pools. The Cabinet recognised the success stories and added value of involving community groups for wider developments.

The Cabinet Member for Environment, Leisure and Heritage Services spoke of the 50p increase for adult swims at the Lido, commenting that it was pleasing to see that residents value the facility and are willing to pay more.

With the agreement of the Leader, as Chairman of the Committee, County Borough Councillor G. Davies spoke on the item, to which the Cabinet Members responded.

In response to the Member’s suggestions, the Leader emphasised the need to prioritise across service areas, whilst strongly taking into consideration, the impact that excessive tax burdens can have on residents.

Discussions ensued around youth provision, with Cabinet Members commenting that the Council’s investments in education, town centre Wi-Fi, leisure, play areas, theatre and sport groups all benefit young people as the people of the future. Members also spoke of the Council’s Graduate and Apprenticeship Scheme, which provides young people with training, skills and employment opportunities, despite being a revenue cost to the Council.

The Leader advised that other political Groups were welcome to put forward alternative budget proposals for consideration.

The Cabinet Member for Corporate Services proposed freezing the charges for school meals for two years, after the 5p increase in 2020/2021, to which the other Members agreed.

The Cabinet RESOLVED:

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

2.    To note and consider the outcomes of the budget consultation phase 1 process;

3.    The draft 2020/2021 Revenue Budget Strategy, detailed in the attached Discussion Paper ‘Appendix A’, as the basis upon which a second phase of consultation will take place;

4.    To propose freezing the charges for school meals for two years, after the 5p increase in 2020/2021;

5.    The draft timetable for setting the 2020/2021 revenue budget as set out at Appendix A2;

6.    To receive feedback from the second phase of budget consultation in order to consider and determine the final budget strategy for submission to Council; and

7.    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.