Agenda item

As detailed in the recommendations.

The Chief Executive introduced the report which provided the budget estimate for 2021/22 in advance of the formal budget-setting process.  It also provided an update on the national budget position.

            The report re-set the budget solutions strategy which was highly dependent on sufficient national funding for local government and was unchanged since last year.

            All five Overview and Scrutiny Committees had been consulted on the budget estimate and strategy throughout November, specifically on the cost pressures included in the estimate for their respective portfolios.  The Committees, as one, did the following:

·         Supported the overall budget strategy;

·         Noted and endorsed the individual portfolio cost pressures;

·         Supported the expectations of Governments on national funding;

·         Noted and accepted the combined efficiency target of £1m - £2m;

·         Did not put forward any further efficiency options to explore; and

·         Supported the Council’s position on local taxation policy i.e. an upper limit of a 5% annual rise in Council Tax.

The Chancellor announced the outcome of the UK Spending Review on 25^th November and the key implications for Wales were:

·         £1.3bn additional funding to Welsh Government (WG) (£770m for ongoing emergency funding and 560m for core public services funding);

·         Public sector pay rises to be suspended other than for designated NHS workgroups and for all those earning less than £24,000 per year; and

·         Minimum wage to rise by 2.2% for those aged 23 and over.

The Corporate Finance Managed explained that the contribution required to fund the North Wales Fire and Rescue Authority (NWFRA), the contribution to the North Wales Economic Ambition Board (NWEAB), and the estimates required for additional learning needs – schools/registration services income were outlined in the report.

The strategic funding solutions for balancing the budget were threefold:

·         Government funding (Aggregate External Finance);

·         Local Taxation and Income; and

·         Service Transformation and Efficiencies.

Table 2 in the report set out scenarios to balance the budget for 2021/22 at the minimum budget requirement.  The Council Tax estimates were gross.  Any impact of the Council Tax Reduction Scheme (CTRS) would need to be built in as costs.

Table 3 in the report set out the revised budget estimate incorporating the pressures for Schools Funding, Additional Learning Needs and Reserves as directed by Cabinet, and illustrated the level of funding required from WG.

The budget timeline was noted as:

15^th December 2020 – Cabinet – Budget Estimate and Strategy

21^st December 2020 – WG Draft Budget

22^nd December 2020 – Provisional Local Government Settlement

23^rd December 2020 – Special Cabinet (AM) and all Member Briefing (PM)

19^th January 2021 – Cabinet – Budget Review

16^th February 2021 – Cabinet and Council – Budget Setting

2^nd March 2021 – WG Final Budget/Settlement

            A verbal update would be given at the special Cabinet meeting on 23^rd December. 

            An amendment was required in Table 3, at the bottom of the first column.  £12.357m should read £2.902m.

            Councillor Banks thanked the five Overview and Scrutiny Committees for being supportive throughout the budget process. 

In response to a question from Councillor Bithell, the Chief Executive explained that it remained the view that national pay awards should be funded nationally. 

RESOLVED:

(a)       That the updated budget estimate for 2021/22 be approved;

(b)       That the feedback from the five Overview and Scrutiny Committees be received; and

(c)        That the strategy to set a legal and balanced budget for 2021/22 be re-set.