Issue - meetings

Approved the procedure and timetable to construct the 2021/22 Budget, while
noting that financial planning is extremely challenging, and therefore if there is
a funding gap to balance the 2021/22 budget, that the Council will use
contingencies and reserves to mitigate resource losses in the short term.

8.    FINANCIAL PLANNING

The report was presented by Cllr. Ioan Thomas 

DECISION

Approved - the procedure and timetable to produce the 2021/22 Budget, while
noting that financial planning was extremely challenging, and therefore if there was a funding gap to balance the 2021/22 budget, that the Council would use
contingencies and reserves to mitigate resource losses in the short-term.

DISCUSSION

The report was submitted noting that it outlined the procedure to produce the 2021/22 budget in this year's unprecedented context. It was stated that the department was currently identifying 2021/22 expenditure needs and bids for additional resources would come before the Cabinet soon.

Since the agenda for this meeting was published, it was stated that it had become apparent that the UK Government would not publish an autumn 'Budget'; however, the Treasury was to hold a one-year Comprehensive Spending Review. It was noted that the Welsh Government intended to publish the local authorities' draft settlement in December, with the final settlement in March. It was added that this was a challenging schedule for local authorities, with an extended period of financial uncertainty. However, it was stated that Gwynedd Council would be starting from a relatively robust financial base.

The 'devilish dozen' list of uncertain financial issues faced by the Council was outlined, including the impact of Covid, Brexit and the trends of price inflation. It was stated that financial planning would be extremely challenging and it was elaborated that the gap in the budget could be up to £8m; however, Gwynedd's firm budgetary base should allow us to 'bridge' in the short-term.

It was suggested that the Council was anxious to avoid giving unnecessary consideration to lists of savings and cuts during a second wave of the pandemic and if there is a funding gap to balance the 2021/22 budget for now. It was recommended for the Council to consider using contingency budgets and funds to alleviate the loss of resources and to increase the Council Tax by 3.5%.

In the longer term, the contingency funds would need to be replenished, so that they were available in the future. It was stated that when there was less uncertainty it would be possible to establish plans for the medium term. The schedule of reports to the Cabinet was highlighted and it was noted that a series of member consultation seminars would be held virtually in January. The time-schedule to set the budget was outlined.

Observations arising from the discussion

¾  It was stated that it was an uncertain period to budget for the future.

¾  The importance of January seminars for members was highlighted, as it was an opportunity for members to give their views on the budget. 

¾  It was noted that the Council was in a comparatively strong position, due to the firm base, to buy time. 

¾  The finance team were thanked for their work.