Agenda item

(a)       That the Committee support the overall budget strategy;

(b)       That the Committee re-affirm the Council’s position on local taxation policy;

(c)        That the Committee support the Council’s expectations of Governments, as outlined within the presentation provided;

(d)       That the Corporate Services and Corporate Financing cost pressures, as outlined within the report, be noted; and

(e)       That no further cost efficiency areas be proposed by the Committee to be explored further.

The Chief Executive and Corporate Finance Manager introduced the first budget stage report which detailed the forecast and the cost pressures which would make-up the total budget requirement.

A report to Cabinet in October had provided an update on the financial forecast for 2021/22 and the following two financial years.  A full review of the forecast had been undertaken to build an accurate and robust baseline of cost pressure which needed to be funded.  The review had taken into account the ongoing impacts of the emergency situation including the speed of recovery of income against set targets.

This report set out the limited solutions available to fund the cost pressures with the funding strategy highly dependent on sufficient national funding for local government.  The details of the cost pressures for Corporate Services and Corporate Financing were included in the report.

The Chief Executive and Corporate Finance Manager gave a detailed presentation which covered the following:-      

• Financial Forecast for 2021/22;
• The Future – What was advised back in February;
• Summary Totals of Cost Pressures;
• Three Part Solutions and Risk-Taking;
• National Position and Funding;
• Potential Funding Scenarios;
• Budget Timetable;
• Support and Challenge Today

Following the presentation, the Chief Executive suggested that a copy of the Ministerial letter and statement which set out the national budget timetable be circulated to the Committee. This was agreed.

Councillor Ian Roberts, Leader of the Council, supported the comments made by the Chief Executive as part of the presentation, highlighting the good working relationship between all local authorities in Wales and Welsh Government (WG).  He gave an assurance that clear messages were being sent to WG outlining the need for additional funding to be provided as part of the Revenue Support Grant (RSG).  He suggested that an additional meeting for Members be convened after 22 December once the provisional local government settlement had been received.  The Chief Executive suggested that a special Cabinet meeting be held on 23 December with an all Members briefing arranged for the same day.  The Committee supported this suggestion.    

In response to a question from Councillor Patrick Heesom on the business support grant, the Chief Executive advised that a business grant support status report would be made available to Members later in the week. Applications were being received from 26 October.

In response to a question from Councillor Paul Shotton on funding pressures for Test, Trace and Protect (TTP), the Chief Executive advised that the TTP scheme was fully funded for 2020/21.  He had requested early budget confirmation for 2021/22 from Welsh Government.

In response to a query from the Chairman on the potential funding scenarios, as outlined within the presentation, the Chief Executive explained that the slides showed a sliding scale with the minimum budget gap of £14.423m shown along the top of the table.  This table showed the need for a minimum 5% RSG to provide the flexibility to keep the local Council Tax increase under 5%.

            It was requested that a ‘protocol’ be drawn up for Members on the use of the chat bar during formal meetings.

            The Chairman thanked officers for their attendance and the presentation provided to the Committee.

            The recommendations, as outlined within the report and presentation slides, were moved by Councillor Paul Shotton and seconded by Councillor Andy Dunbobbin.

RESOLVED:

(a)       That the Committee support the overall budget strategy;

(b)       That the Committee re-affirm the Council’s position on local taxation policy;

(c)        That the Committee support the Council’s expectations of Governments, as outlined within the presentation provided;

(d)       That the Corporate Services and Corporate Financing cost pressures, as outlined within the report, be noted; and

(e)       That no further cost efficiency areas be proposed by the Committee to be explored further.