Agenda item

Purpose:  To receive the recommendations of Cabinet and set a balanced budget for 2017/18.

That Council maintains 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 to balance the budget.

The Chief Executive introduced the report to provide the recommendations of the Cabinet for the Council Fund Revenue Budget 2017/18.  He gave background information and referred to the stages in the budget setting process which had been beneficial in forward planning.  He reported that Stage One of the budget proposals for the service portfolios were approved by Council on 15 November 2016, and Stage Two proposals for corporate financial stewardship were approved by Council on 6 December 2016.  In addition they had been given prior approval by the Corporate Resources Overview & Scrutiny Committee on 30 November 2016. 

The Chief Executive and Corporate Finance Manager gave a joint presentation which covered the following areas:

·         budget strategy

·         Budget Stage One – portfolio business plans

·         Budget Stage Two – Corporate Financial Stewardship

·         remaining budget gap after stages one and two

·         limited options to close the budget gap

·         Domiciliary Care funding

·         Council Tax

·         school investment

·         council tax and use of reserves and balances

·         budget risks and issues                    

·         professional opinions

·         the future  

            Councillor Aaron Shotton thanked the Chief Executive, the Corporate Finance Manager and his team, Chief Officers and their teams, for the significant work undertaken during this period of unprecedented austerity and challenge on public services in preparing the budget for the next financial year.   He also thanked Members for the unified approach they had taken to protect critical key services and the robust and appropriate scrutiny which had been undertaken. He commented on the national case which had been made by Flintshire at national level, not only for Flintshire but on behalf of the local government ‘family’ over the pressures around social care and the additional funding which had been received in the final Settlement as a result.     He commented on the developing national health crisis in England which was symptomatic of the underfunding of the social care system and said that despite the pressures faced this year Flintshire had seen protection of social care budgets and a £3.2m increase in budget. 

Referring to the recommendations from Cabinet to close the gap and balance the budget Councillor Shotton said he was grateful for the 1.34% increase in school budgets and said that it was appropriate that reserves should be utilised to meet the remainder of the budget gap and that Council Tax be set at 3%.  He said that he believed that the purpose of reserves was to defend public services during difficult financial times.  In summary he commented on the need for a change in strategy at United Kingdom and Welsh Government level on the future funding for local government services.

Councillor Mike Peers reiterated the views expressed by Councillor Shotton and commented on the difficulty faced by Council to try to maintain services under budgetary pressures which would present greater challenges in the future.   He supported the 3% increase in Council Tax and use of reserves and welcomed the protection of education and social care service budgets.

Councillor Chris Bithell welcomed the 1.34% (£1.2m) uplift in school budgets in the current period of austerity and commented on the difficulty experienced by schools dealing with reduced budgets and particularly secondary schools which were under considerable pressure with some in a deficit position. 

In response to a request from Councillor Clive Carver on the Domiciliary Care Funding the Chief Executive explained that the current cap was set at £60 per week (chargeable cost to the client) and would be increased to £70 per week from April 2017.  He went on to explain that the difference if collected from all the current client bases on 1 April 2017 would result in £0.238m extra income.  The cap would increase each year by £10 per year until it reached £100 and would provide additional income for the Council each year.

In response to a question from Councillor Robin Guest on the proposed  increase in Council Tax and the use of reserves to bridge the ‘gap’ the Corporate Finance Manager referred to the advice given at the meeting of the Corporate Resources Overview & Scrutiny meeting held on 20 January 2017. He  confirmed that £0.699m had already been approved and had been met from Reserves and the additional £0.317m would need to be met from Reserves which would take it higher than the £2m he had quoted as a guideline figure for high risk.  The Chief Executive commented further on the use of reserves and referred to the budget consequences of the Apprentice Tax Levy and the Fire Authority’s significant uplift in year.

Councillor Gareth Roberts commented on the financial pressures to be addressed in the future.  He referred to the Standard Spending Assessment  and expressed the view that the Council Tax should be increased to 5% to raise the income needed to protect services, and said that the Council’s reserves were currently as low as prudently possible.

Councillor David Healey supported the 3% increase in Council Tax.  He congratulated the Chief Executive and Officers for their commendable achievements in protecting service areas in view of the severe austerity measures imposed.  He welcomed the uplift of 1.34% in school budgets and the protection of social care budgets.  He also took the opportunity to commend the Chief Executive and Officers on the foresight to consider the alternative delivery models and develop a strategy for community asset transfers to maintain services and avoid the closure of facilities.  He also congratulated the Town and Community Councils and Community Groups which had “stepped up to the challenge” to maintain such services for local communities

            Councillor Christine Jones expressed her thanks for the investment and protection of social care services which would enable the Council to negotiate fair increases in care fees with providers.

On being put to the vote the recommendations from Cabinet were carried.

RESOLVED:

That Council maintains 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 to balance the budget.