Issue - meetings

That the report be received.

The Chief Executive introduced the report to enable the Committee to make comments on the Council’s response to the Provisional Settlement for 2016/17 before consideration by Cabinet on 19^th January 2016.  The report would not be considered by County Council due to the short timescale for a response.  Paragraph 1.06 of the report to Cabinet suggested a response and was separated into three areas which were:-

·         The Provisional Settlement for 2016/17

·         Future annual Settlements

·         Immediate National Budget Work for 2016/17

In referring to the Provisional Settlement for 2016/17 the Chief Executive welcomed the lower Revenue Support Grant (RSG) reductions which reduced the budget gap for Flintshire County Council by nearly £4m.  There was a need to press Welsh Government (WG) for a lower reduction in the new Single Environment Grant (SEG) than the proposed reduction.  The cut in the SEG was -6.7% or £0.210m for Flintshire, with the average for Wales being -6.4%, and could result in an impact on key local public services.  Concerns were also being expressed on the risk of any further above average reductions for currently unpublished specific grants and the inability to plan for impacts on services as a result of in-year specific grant reductions as had been experienced in 2015/16.  On the issue of the newly announced joint health and social care additional funding, the Chief Executive explained that progress was being made to ensure it was equally accessible for current and emerging service demands.

Councillor Aaron Shotton spoke of the lobbying work that had been undertaken which included a request for an exemption on the social care charging cap.  He also commented on pressures in the social care budget.  Councillor Shotton spoke of the positive comments that had been received from Mark Drakeford, the Minister for Health and Social Services, about the need to examine the concerns raised and the positive recognition by WG of the issues that were being highlighted.  However, it was unlikely that any changes would be implemented before the Welsh Assembly elections in May 2016.  Councillor Shotton also raised concern about the Council Tax Reduction Scheme, which was not fully funded and was therefore a budget pressure even though it was in effect a national Welfare Scheme in Wales.  He commented on the additional funding for joint health and social care and referred to the Intermediate Care Fund.

Flintshire was ranked 19^th out of the 22 Welsh Councils per capita on Aggregate External Finance (AEF) and it had been reported to Cabinet in December 2015 that if Flintshire received the per capita average, then the Council’s AEF would be £17.455m per annum higher than the amount currently received.  The formula was based principally on deprivation indices, rurality and sparsity, and service need indices. National discussions on the future of the local government funding formula were ongoing.  The Chief Executive explained that if the Council had received funding based on the average AEF, then a balanced budget could be agreed without the need for any new efficiencies this  ...  view the full minutes text for item 74