Issue - meetings

(a)       That the budget forecast for 2020/21 be re-noted, and the open risks which need to be taken into account in setting the budget be noted;

(b)       That the impacts and the implications of the Provisional Local Government Budget Settlement be noted;

(c)        That the work in hand on the remaining local options to contribute to reaching a balanced budget for 2020/21 be noted;

(d)       That the professional advice that, based on the financial strategy we have been working to be noted, and that there is a high degree of confidence that a legal and balanced budget can be recommended to Council on 18^th February; and

(e)       That a full and final report with recommendations to set a legal and balanced budget be reported to the Council meeting on 18^th February.

The Chief Executive introduced the Council Fund Revenue Budget 2020/21 Stage Two report which set out the strategy for reaching a legal and balanced budget.  The Provisional Settlement was out for public consultation and would be finalised on 25^th February prior to the approval of the Welsh Government (WG) Budget for all public services.

            The report covered:

·         The latest local financial forecast for 2020/21;

·         A summary of the stage one work on the budget;

·         An assessment of the Provisional Settlement and the impacts and implications for the Council;

·         The work in hand on the limited range of local options at stage two to contribute to reaching a balanced budget for 2020/21;

·         The open risks which needed to be taken into account in setting the budget; and

·         The steps to close the budget and ongoing work for the medium-term.

The report advised that there was a high degree of confidence that a legal and balanced budget could be recommended to Council at the meeting on 18^th February. A special meeting of Group Leaders was scheduled to take place prior to that Council meeting.

Since the last meeting in December, the impact of the latest changes had been to increase the budget gap to meet the expenditure requirement for 2020/21 by £0.181M to £16.355M.

The Corporate Finance Manager provided full details on the Provisional Settlement, as detailed in the report.  He explained that the provisional AEF (Revenue Support Grant and share of National Rates Pool) for 2020/21 was £199.386M which, when compared to the adjusted 2019/20 figure of £192.212M represented an increase of 3.7%.  The all Wales average increase was 4.3%.  The provisional allocation represented a cash uplift of £10.406M over the 2019/20 allocation of £188.980M.

There were three transfers into the Settlement:

·         Teacher Pension Grant (£1.978M);

·         Nursing Care (£0.081M); and

·         Teacher Pay (£0.608M).

There was no additional funding confirmed at this stage to support a funding ‘floor’.  A funding floor was a guaranteed level of funding for councils who came under the all-Wales average change in the annual Settlement. A floor had been a feature of the Settlement for many years.  Given the variations in the annual uplift from council to council, a floor had been called for by a number of councils.  If granted, it would be funded by WG over and above the quantum it had committed to invest in the Settlement for 2020/21 thus far.  The group of North Wales Leaders had made the case for a floor to be set at 4%.  If granted, that would improve Flintshire’s position by 0.3%.  The Welsh Local Government Association (WLGA) had also supported the call for a floor.  A decision was awaited and there could be no assumption at this stage, prior to the finalisation and approval of the WG budget.

Details on specific grants awarded were outlined in the report.  Most grants would be at the same level as 2019/20 or would be increased for indexation.  There would be several significant uplifts to specific grants within Education  ...  view the full minutes text for item 92