Issue - meetings

As detailed in the recommendation.

Councillor Banks introduced the report which set out (1) a close to final budget estimate in readiness for Council to set the annual budget in February (2) the financial implications of the Welsh Provisional Local Government Settlement (3) the remaining issues to be resolved in reaching a balanced budget for recommendation to Council and (4) the budget-setting timetable.

            The Chief Executive advised that the report summarised the Provisional Settlement and its implications to follow the verbal updates provided to Cabinet and all Members in December.  The report was an interim step prior to the recommendation of a legal and balanced budget to Council in February, and set out the outstanding issues to be resolved.  Any subsequent annual pay awards would remain an open risk in-year with the Council’s position on pay remaining clear that as there was no specific provision within the Provisional Settlement for annual pay awards for 2021/22, there could be none or the burden would fall on public sector employers.  

            The Corporate Finance Manager provided a detailed update on the remaining issues for budget closure, as set out within the report, with conclusive outcomes expected prior to Cabinet (in February) being able to recommend a legal and balanced budget to Council.  The Chief Executive suggested that the recommended budget report be presented to the Corporate Resources Overview & Scrutiny Committee for their observations prior to being presented to Cabinet in February, with any comments/suggestions made being verbally to Cabinet.

            Councillor Roberts supported the suggestion to present the report to Corporate Resources Overview & Scrutiny Committee prior to Cabinet.  He reported that the Chancellor of the Exchequer’s UK Spending Review Announcement made no provision for public sector pay awards and whilst Members personally would no doubt support an annual pay award, funding to allow this had not been provided and therefore one could not be implemented.  The Chief Executive said that the cost of pay awards must be funded by Government with other Council’s taking the same position.  The potential of later pay awards could not be accounted for when setting the budget and therefore this remained an open risk.        

            In response to a question from Councillor Bithell, the Chief Executive advised that the School Budget Forum had supported the Council’s position on annual pay awards with Trade Unions making their views known at a national level. 

            Councillor Banks praised the WG hardship fund which had assisted the Council in being able to propose a Council Tax rise under 5%.  He reiterated the comments made for annual pay awards to be fully funded at a national level and made the case for financial assistance to assist Out of County placements in the short term.

RESOLVED:

That the progress made in moving towards a set of recommendations for Council to be able to set a legal and balanced budget in February be noted.