Agenda item

That the Leader and the Chief Executive submit a written response on behalf of the Council to the Independent Commission.

The Chief Executive  introduced a report on Independent Commission on Local Government Finance in Wales.  He provided background information and context and advised that the Commission had now called for evidence to inform its recommendations for financial reform.  The Commission aimed to conclude its work and make recommendations early 2016.  The Chief Executive gave a presentation on Local Government Commission on Finance for Wales.  The main points of the presentation were:

·         context

·         Welsh commission on finance

·         principles to underpin a response

·         contrasts: England and Wales

·         consultation questions and answers

Councillor Aaron Shotton explained that the Commission had been established by all 22 local authorities in Wales.  He referred to the “solid” work undertaken by the Independent Commission on Local Government Finance for England which published its findings and recommendations in 2015.  He emphasised that this was an opportunity for Flintshire to “have its say” and for  the Council, individual Members, and local organisations to present evidence to the Commission.  He referred to the WLGA ‘Manifesto’  and commented on the future post reorganisation and reiterated the opportunity to shape the political future in Wales and local government in Flintshire. 

Councillor Shotton commented on the need for a radical review of business rates and referred to a £12M deficit between what was paid and received. He said it was important that Flintshire’s voice was heard and referred to future progress and creation of jobs and said it was only fair that this should be reflected in terms of the public services provided by the Council. 

Councillor Gareth Roberts welcomed the report and the principles around subsidiarity.  He commented on the advantages of funding through local income tax and spoke in support of being able to retain a greater share of retained National Non Domestic/“business rates”.

Councillor Chris Bithell expressed his views on what he felt was the bigger national issue of taxation.  He believed local government was “short changed” through the national government system of funding and should be getting a proportion of national income tax.  He commented on the need for consultation on the funding arrangements for local government in the future to enable it to meet the increased expectation for better and more efficient local services.

Councillor Mike Peers expressed further concerns around funding from the Welsh Government for local authorities in Wales and said there was a need for greater localism to enable local funding to be raised for local needs.

Councillor Richard Jones referred to the benefits of multi-year financial settlements which would be more beneficial to Flintshire in terms of forward planning.

Councillor Alex Aldridge referred to the creation of the Welsh Government and commented on the inevitable impact on public sector finance in Wales.  The Chief Executive and Councillor Aaron Shotton acknowledged the points raised by Councillor Aldridge.  The Chief Executive commented that the current system was unsustainable and agreed to reflect the comments expressed by Councillor Aldridge in the Council’s response to the Commission.

            RESOLVED:

That the Leader and the Chief Executive submit a written response on behalf of the Council to the Independent Commission.