Decision details

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No

Decisions:

 

With the agreement of the Leader, being of the opinion that the report of the Group Director, Corporate & Frontline Services  – ‘The Council's 2019/20 Revenue Budget - The Provisional Settlement ‘ be considered in accordance with the provision of section 100(b)4(B) of the Local Government Act 1972, as a matter of urgency, by reason of special circumstance i.e. To provide Members with an update on the provisional settlement following its publication on the 9th October, 2018.

 

The Group Director, Corporate & Frontline Services referred Members to his report which provided Cabinet with information in respect of the 2019/2020 Provisional Local Government Settlement, and initial comments on its likely implications for the delivery of Council services, following publication of the details on the 9th October, 2018.

 

The Group Director provided Members with the headline data from the settlement advising that the provisional reported settlement for Rhondda Cynon Taf, shows an increase of +0.3% which is above the average of -0.3%. Settlement figures across the twenty two local authorities in Wales range from at best +0.4% to at worst -1.0%.   Member were advised that the provisional settlement included partial funding for the Teachers pay awards agreement and the increase in Free School Meals, however details of specific grants had yet to be announced.

 

Members were advised that although the Provisional Settlement was better than modelled in the most recent Medium Term Financial Plan, it still presented the Council with a significant challenge in terms of preparing a balanced budget for 2019/20, with Members being advised that the potential funding gap going forward would be £5.920M.  The Group Director took the opportunity to advise Members of the work needed to be undertaken to develop an equitable budget strategy for 2019/20.

 

The Leader thanked the Group Director for  the information following the announcement and commented on the huge risk still facing the Authority with the teacher pay awards, which were not fully funded and advised that communication had been sent to both Welsh Government and UK Government in respect of this matter.  The Leader also referenced the Barnett consequences from the UK Government which could impact on the settlement going forward for Wales and spoke of the pressures relating to Health and Social Care, the levies in respect of apprenticeships and National Insurance contributions and commented that consultation on bridging the gap would need to be taken forward.

 

The Deputy Leader also commented on the provisional settlement and advised that the Council had been shortlisted for a prestigious national award for the Councils Apprenticeship scheme.

 

It was RESOLVED:

1.    To note the Provisional 2019/2020 Local Government Settlement, announced by the Cabinet Secretary for Local Government and Public Services the 9th October 2018.

 

2.    To note that the Final 2019/2020 Local Government Settlement is expected during December 2018.

 

3.    To note that the general budget strategy consultation, subject to Cabinet agreement will commence on the 5th November 2018.

 

4.    To refer the report to the Council meeting on the 24th October, 2018 for all Members consideration.

Publication date: 16/10/2018

Date of decision: 16/10/2018

Decided at meeting: 16/10/2018 - Cabinet

Accompanying Documents: