Agenda item

As detailed in recommendations (1) and (3) and (2) being amended to:

(2)       Recommend to Council to maintain the planned Council Tax rise at 3% as per the Medium Term Financial Strategy (MTFS) with the remaining gap at the figure as reported to be met wholly by reserves and balances.

The Chief Executive introduced the Council Fund Revenue Budget 2017/18 report. 

He provided background details to Stages One and Two which had been approved by County Council following consideration at Corporate Resources Overview and Scrutiny Committee meetings, to which all Members had been invited, and Cabinet meetings.

The options to balance the budget had been considered at Corporate Resources Overview and Scrutiny Committee on 20^th January with the remaining budget gap being confirmed as £1.997m.  The Committee had recommended that the proposed level of school investment be maintained in the final budget proposals.

Following a long campaign for an increased investment in Social Care, Welsh Government (WG) had confirmed that the charging cap limit for domiciliary care would be raised from £60 per week to £70 per week from 1^st April 2017.  For Flintshire that would generate an additional income of £0.238m in 2017/18.  Also, an additional specific grant of £10m was also announced to support the rising costs of domiciliary care across Wales as part of the Final Local Government Settlement.  Flintshire expected to receive around £0.430m of that grant.  It had been confirmed that from 2018/19 the funding would be transferred into the Settlement.  That reduced the budget gap to £1.329m.

The North Wales Fire and Rescue Authority had set an increase of 4% in its levy which, when taking into account regional population changes, Flintshire’s annual increase would be 4.52%.  That resulted in a cost pressure of £0.317m for which there was no provision in the current budget estimate.  This increased the budget gap to £1.646m.

The Corporate Finance Manager explained that assuming that the current level of school investment was maintained then the closure of the budget gap came down to striking a balance between the level of Council Tax to be set and drawing upon reserves and balances.  It was important to note that funding derived from Council Tax was recurrent funding which would assist budget setting in future years.

Councillor Shotton commented on the positive way in which the budget process had been undertaken with it being reported to Corporate Resources Overview and Scrutiny Committee meetings at each stage.  He proposed that the Council Tax did not rise beyond 3% and that reserves and balances be used to close the remaining gap which was supported.

Councillor Attridge thanked officers and Cabinet Members for the work that had been undertaken on the budget process.  He reiterated previous comments that the Authority had not taken decisions to close things such as care homes and leisure centres but instead had looked at alternative methods of delivery for some services which in turn had seen them protected. 

RESOLVED:

(a)       That stage one and stage two of the budget proposals for 2017/18 be re-affirmed;

(b)       That a method of closing the remaining budget gap be recommended to Council as “maintain the planned Council Tax rise at 3% as per the Medium Term Financial Strategy with the remaining gap at the figure as reported to be met wholly by reserves and balances; and

(c)        That the formal advice of the Section 151 Officer and Chief Executive, in making the above recommendation, be received and considered.