Agenda item

Derbyn cyflwyniad gan Gyfarwyddwr y Gwasanaethau Ariannol ac ymgymryd â gwaith cyn y cam craffu ar gynigion mewn perthynas â Strategaeth Cyllideb Refeniw ddrafft y Cyngor ar gyfer 2019/20.

Nodwch: Mae copi o'r adroddiad adborth ymgynghori terfynol ynghlwm.

The Director of Financial Services provided Members with a presentation in respect of the Council’s Draft 2019/20 Revenue Budget Strategy, which contained the views of the Council’s Senior Leadership Team under the following headings:-

Ø  Council’s Current Financial Position

Ø  The 2018/19 Final Local Government Settlement

Ø  The Starting Point Budget Gap

Ø  Budget Consultation Outcomes

Ø  Key Building Blocks

Ø  Council Tax

Ø  Schools

Ø  The Final Budget Gap and Strategy Options

Ø  Conclusion and Next Steps

The Director indicated that the overview provided was to assist Members in formulating their views on the draft proposals, especially with regard to:

Ø  Council Tax levels

Ø  A proposed schools increase

Ø  Fees & Charges (Level of increase/ Any exceptions/variations)

Ø  Strategy options to close remaining budget gap (the starting point Budget Gap is now £6.497M)

Members were informed that the views of this Committee would be fed back to Cabinet at its meeting in February, which would be incorporated into a report that would be presented to full Council.

Members noted the proposal and discussions ensued.

In relation to the School Budget, a Member questioned if there was a set date as to when the Budget would be formally approved. The Director of Financial Services advised the Committee that the Budget would be formally approved by the 6^th of March 2019. The Member emphasised the importance of schools receiving this information as quickly as possible. The Head of Finance advised Members that the department is hoping to get a draft formula out to all schools in the County Borough by February half term. The Head of Finance emphasised that efficiency planning will be required at a school level. Another Member queried what impact the Teachers’ Pension increase would have on the School Budget. The Director of Financial Services advised the Committee that the Welsh Government had not made a decision yet as to whether the increase would be absorbed into the School Budget. The Elected Parent/ Governor Representative noted the importance of schools receiving this information as soon as possible. He also questioned whether the efficiencies would be in the same range as last year. The Director of Financial Services emphasised that each school will have to agree a deficit recovery plan with the Director of Education. The Head of 21^st Century Schools emphasised that schools will need to improve their financial planning.  

In respect of Fees and Charges, a Member raised concerns and questioned whether the Committee could receive information as to how much financial support is received for non-statutory services. The Member emphasised that the Budget can be difficult to understand and felt that it would assist Members if they could see how much is being spent on each non-statutory service. In response, the Director of Financial Services advised the Committee that the Budget book is in the Website, which includes the net budget for Leisure services. The Member felt that it would be useful to have a breakdown of the Budget to show how much is being spent on each area. The Director advised Members that he would incorporate this into the next quarterly report.

In relation to the Council Tax Reduction Scheme (CTRS), the Chair of the Overview and Scrutiny Committee questioned whether any consideration had been given to Universal Credit. The Director of Financial Services advised Members that whilst the CTRS was not part of Universal Credit, the department does recognise that there could be significant delays due to the introduction of Universal Credit. The Director emphasised that the CTRS remains the Council’s responsibility. Members were reminded that in December, the Committee felt that the current CTRS Scheme should be extended from 3 months to 6 months. The Director advised Members that this feedback was considered at full Council and will be implemented accordingly.

The Director referenced the Council’s Materials Recovery Facility, which is the Council’s investment in state of the art technology (as agreed by Cabinet on the 16/10/18). Members were informed that this would generate part year savings of £0.458M. A Member commented that this will help the Council meet its recycling targets and will be a huge benefit to the Local Authority.

The Vice-Chair questioned the source of the fund reserve. The Director advised Members that opportunities are taken to reduce the budget gap on a continual basis and that the fund reserve is topped up each Municipal year. A further query was raised in relation to the transformation reserve. The vice-chair questioned whether this was in fact additional money given that it has been combined with a Council Tax increase. The Director of Financial Services advised the Committee that the increase in Council Tax provides the base budget income and that the transformation reserve is classed as added income as it is money already saved by the Council in previous years.

The Elected Parent/ Governor Representative wanted to commend the Council for increasing the School Budget, however, he emphasised using caution when putting this message across to the public. A number of Members agreed and it was emphasised that the Council need to be clear in the way they present the Budget breakdown to members of the public.

Discussions ensued and a Member commented that whilst it is commendable that the Council has protected the School budget, it is also important for the public to realise that cuts are being made to Community and Children Services.

A Member referenced the consultation process and referred Committee Members to the Budget Consultation Outcomes. It was emphasised that Music is a vital part of Education and that as such, the Council should not make any further cuts in this area.

Another Member raised concerns regarding money that is spent by the Local Authority on Looked After Children outside of the County Borough. Members agreed that the public are not aware of the financial cost and that this should be clarified in the Budget.

In Conclusion, the Director of Financial Services stated that the views of Members of this Committee would be fed back to Cabinet at its meeting in February, which would be incorporated into a report that would be presented to full Council.

The Chair thanked the Director of Financial Servicers his in depth report.

Following a discussion, Members RESOLVED;

1.    That the views expressed by the Members, as set out in the body of the minutes, are fed back to Cabinet in respect of their budget strategy proposals.