Agenda item

(a)       That the recommendations of Cabinet for balancing the budget for 2024/25 be approved, based on the alternative option set out in paragraph 1.25 of the report; and

(b)       That the level of Council Tax for 2024/25 as recommended by Cabinet be approved, based on the alternative option for an overall annual increase of 9.0%.

The Chief Executive and Corporate Finance Manager gave a detailed presentation based on the report submitted to Cabinet earlier in the day, which covered the following:

·         Setting a legal and balanced budget

·         The journey so far…

·         Further changes to the additional budget requirement 2024/25

·         Additional Budget Requirement 2024/25

·         Budget Solutions

o   Aggregate External Finance (AEF)

o   Portfolio Cost Reductions

o   Schools - Cost Reductions

o   Other Cost Reductions

o   Council Tax

o   Final Proposed Solutions

o   Other Budget Option (submitted by the Independent Group)

·         Council Tax 2024/25

·         Schools and Social Care Budgets

·         Open Risks in 2024/25

·         Reserves

·         Professional Opinions and Concluding Remarks

·         Looking Forward

·         Next Steps and Timelines

The presentation detailed changes since the position reported in January which had taken into account the financial impact of the Welsh Local Government Provisional Settlement (LGPS).  Following two Member briefings and additional cost reduction proposals being considered by Overview & Scrutiny committees, work had continued to review the overall position in conjunction with a recent announcement from Welsh Government (WG) on an expected consequential from UK Government.  The outcome of that work was detailed in the Cabinet report with final proposed solutions to set out how the Council could achieve a legal and balanced budget for 2024/25.  The proposed budget included an overall annual 8% increase on Council Tax for Council services and 1.1% for additional contributions to North Wales Fire and Rescue Service and the Regional Coroners Service.  This equated to an overall uplift of 9.1% which provided overall additional net yield of £9.072m in 2024/25.  Analysis of this proposal and an option submitted by the Independent Group - which required the utilisation of the additional WG AEF with an overall Council Tax increase of 9.0% - was explained in the presentation.

A number of significant open risks were highlighted for 2024/25 together with an update on reserves including a reminder of the importance of building and maintaining reserves to safeguard against open risks and for the medium term in view of the reduced settlements expected for 2025/26 and 2026/27.

The Chief Executive concluded the presentation by reflecting on the increased risks and challenges arising from the poor settlement by WG and the need for increased fiscal control in 2024/25 to respond to anticipated future reduced financial settlements, with greater emphasis on service transformation and cost reduction.

As Leader of the Council, Councillor Ian Roberts thanked everyone for their input on the challenging budget situation and echoed officers’ concerns about the future financial position of local government.  Following the Cabinet meeting and discussions with the Independent Group earlier in the day, he moved the alternative budget set out in paragraph 1.25 of the report which included an annual overall 9.0% increase in Council Tax.

The proposal was seconded by Councillor Richard Jones who thanked officers, particularly those in the Finance team, for working with the Independent Group on the alternative budget.  He recognised the administration for supporting the proposal and referred to the impact of the funding formula which was in urgent need of review by WG.

Councillor Paul Johnson acknowledged the difficult decisions needed to set a legal and balanced budget.  He spoke about the impact of inflationary pressures, increased service demand and poor settlements and the importance of strengthening reserves to safeguard against risks.

The efforts of both political groups in reaching agreement on such a challenging situation were recognised by Councillor David Healey who called for all Members to work together.

In response to questions from Councillor David Coggins Cogan, the Corporate Finance Manager explained that the provisional AEF uplift had been lower than anticipated due to revised late data sets prior to the calculation of the formula.  He also provided information on expectations for the Council’s allocation from the WG consequential which had been included in funding estimates, advising that any change would be accommodated from reserves.

Reference was made by Councillor Mike Peers to the Council again being amongst the lowest funded authorities per capita in Wales resulting in the financial burden placed on residents.  He paid tribute to Councillors Richard Jones and Ian Roberts for agreeing on what he described as a collaborative budget.

Comments were made by Councillor Andrew Parkhurst about the lack of leadership on the budget and the delay in transformational change by the administration.  He went on to speak in support of the protection of small rural schools.

Councillor Carol Ellis spoke about the effect of the low settlement from WG on the Council and residents.  She also expressed disappointment at the poor attendance by Members of the Senedd at a recent meeting which had taken place.

Councillor Bill Crease spoke about the increasing difficulties for the Council in light of the below average settlement from WG.

Councillor Chris Bithell referred to the erosion of funding from the Revenue Support Grant over the years and the unfairness of the funding formula which was not sustainable.

Councillor Sam Swash expressed disappointment that some of his suggestions raised during the process had not been taken.  He questioned why a number of departmental underspends had not been addressed as part of the budget solutions and spoke against specific actions which he felt did not benefit Flintshire’s communities or residents.

Councillor Glyn Banks also commented on the unfairness of the funding formula and the inevitable impact on Council Tax.

In exercising his right of reply, Councillor Roberts acknowledged the impact on schools and residents and gave assurance that robust challenges had been made at ministerial level on the financial situation.

A recorded vote requested by Councillor Andy Hughes was not supported by the requisite number of Members.

Having already been moved and seconded, the Cabinet recommendations as follows were put to the vote and carried, based on the alternative budget option set out in paragraph 1.25:

1.         That Cabinet notes and approves the revised additional budget requirement for 2024/25;

2.         That Cabinet approves the final proposals for the cost reductions that will contribute to the budget;

3.         That Cabinet recommends to Council a legal and balanced budget based on the calculations and two options set out within the report;

4.         That Cabinet notes the significant open risks which remain to be managed in the 2024/25 financial year;

5.         That Cabinet recommends an overall annual increase in Council Tax for 2024/25 based on the two options provided;

6.         That Cabinet invites Council to pass the formal Council Tax resolution now that we have had notification of the precepts of the Police and Crime Commissioner and all Town and Community Councils within Flintshire; and

7.         That Cabinet notes the medium-term forecast as a basis for the next revision of the Medium-Term Financial Strategy (MTFS).

Councillor Adele Davies-Cooke requested that her vote against be recorded.

RESOLVED:

(a)       That the recommendations of Cabinet for balancing the budget for 2024/25 be approved, based on the alternative option set out in paragraph 1.25 of the report; and

(b)       That the level of Council Tax for 2024/25 as recommended by Cabinet be approved, based on the alternative option for an overall annual increase of 9.0%.