Issue - meetings

(a)       That the report and recommendations of the Independent Commission be received: and

(b)       That a special Group Leaders meeting be convened as early as possible to formulate a detailed response to the Commission’s report, the WG and the WLGA

The Chief Executive introduced a report on the Independent Commission on Local Government Finance in Wales.  He provided background information and reported that the Commission had concluded its work and had made its report public in March 2016.  The Commission had made a number of fundamental recommendations and  Members were invited to make a response to the Commission’s report. The Chief Executive advised that  by making a constructive evidenced response to the Commission, WG and WLGA together  the Council could make its positon and ideas known for the benefit of the local government ‘family’.

                        The Chief Executive gave a joint presentation with the Corporate Finance Manager on the Independent Commission on Local Government Finance in Wales.  The main points of the presentation were:

·                     Commission’s recommendations

·                     national financial position

·                     responding to the Commission

·                     Council financial profile

·                     Council strategy

·                     the Funding Formula

·                     the Funding Formula dilemma

·                     standard levels of service

·                     remedial work needed on the Formula

·                     making the Flintshire case

·                     setting out our funding plan

                        Councillor Aaron Shotton welcomed the Commission’s report and the recommendations which acknowledged the concerns raised by Flintshire regarding the discrepancies in the funding formula and mounting pressure on public services.  He also said that some of the solutions that had been proposed,  citing the retention of business rates as an example, had been acknowledged by the Commission.  He commented on the need to engage the support of Assembly Members and MPs to support the arguments to be put forward to the WG for change and reform of the funding formula and proposed that a special Group Leaders meeting be convened as early as possible to formulate a detailed response to the Commission’s report, the WG and the WLGA and the next steps forward.

                        Councillor Chris Bithell welcomed the Commission’s report and commented that many of the  recommendations would improve Flintshire’s position, however, he expressed the view that the whole system of local government finance was in need of a radical review and that the current system was no longer ‘fit for purpose’.  He continued that although there could be ‘winners’ and ‘losers’ in any review of the distribution of funding local authorities had to have sufficient funding to be able to cover the ‘basic’ costs, citing teacher’s pay, social and residential care as examples. which were the same throughout Wales.

                        Councillor Mike Peers reiterated the need for a quick and fair review of the funding formula.  He  expressed the view that Flintshire was getting a ‘poor deal’ and that its position should be ‘average’ at the least which would provide an additional £17m per year.  He spoke for and against some of the proposals put forward by the Commission and said the priority was a quick and fair review of the funding formula.

                        Councillor Gareth Roberts also welcomed the report and the potential for change.  He spoke in support and against some of the Commission’s recommendations and welcomed the less hypothecation of grants  and commented on S106 agreements.

  Councillor Richard Jones supported the need for a  ...  view the full minutes text for item 26