Decision details

The Director, Finance and Digital Services provided the Cabinet with an update on the Medium Term Financial Plan for 2020/21 to 2023/24, based on current modelling assumptions in advance of formulating the detailed budget strategy proposals for 2021/22 during the autumn. 

The Director spoke of the uncertain time faced by the Council, from both a financial and operational perspective and reminded Members of the latest indication from the UK Central Government, that the 2020 Budget scheduled for November 2020 would be deferred; and that the Comprehensive Spending Review, setting public sector expenditure / funding limits, which was also scheduled for November 2020, would still go ahead but that no decision had been taken on whether it will cover the three years originally planned. 

The Director advised that the Welsh Government continued to support additional cost implications arising from the Covid-19 pandemic, including lost income.

The Cabinet were referred to Section 5 of the report, where the key assumptions factored into the Financial Plan was outlined.

·      Council Tax increases are currently being modelled at 2.85% per annum;

·      One-off funding from Welsh Government assumed to be mainstreamed in respect of Social Services and Children’s Services specific grants;

·      Fees and charges uplifted by inflation only;

·      Uplifts included for pay and non-pay inflation; and.

·      Schools budget is modelled to cover, in full, pay and non-pay inflation (and in the context of the projected range of local government settlement levels).

(Note: At this point in proceedings, the Leader of the Council joined the meeting)

The Director advised that options would be developed which could help address the range of the potential budget gap which the Council faced, but stressed the importance, that in doing so, critical services are maintained.

The Deputy Leader thanked the officers for the modelling despite the many challenges and uncertainty, noting that the repercussions of ‘Storm Dennis’ were still faced by the Local Authority and the communities. The Deputy Leader proposed that the report is presented to full Council at its meeting on 21^st October 2020 and that the details forms part of the Finance & Performance Scrutiny Committee consultation as part of the 2021/22 budget strategy approach.

Both the Leader and Deputy Leader expressed their thanks to officers for their financial management. The Leader spoke of pressures in relation to Council Tax but was pleased that the modelling was below 3% and one of the lowest in comparison to other Local Authorities.

The Leader advised that the Local Authority were continuing to lobby Welsh Government in relation to funding for the teachers and the wider staff pay award.

The Cabinet Member for Corporate Services paid tribute to the officers, commenting that the uncertainty in respect of funding from UK Government, makes it difficult to formulate the Financial Plan.

The Cabinet RESOLVED:

1.    To note the current position modelled in respect of the ‘Medium Term Financial Plan 2020/21 to 2023/24’ and receive further updates in the autumn as part of the annual budget setting process;  and

2.    That the report is presented to full Council at its meeting on 21^st October 2020 and that the details forms part of the Finance & Performance Scrutiny Committee consultation as part of the 2021/22 budget strategy approach.