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Agenda item

Cyflwynwyd gan:Cyng/Cllr Ioan Thomas

Decision:

Resolved to:

 

a)    Recommend to the Council (at its meeting on 5 March 2020) that:

 

1.    A budget of £261,837,750 should be set for 2020/21, to be funded by £187,579,040 of Government Grant and £74,258,710 Council Tax income, with an increase of 3.9%.

 

2.    A capital programme of £44,247,260 should be established in 2020/21, to be funded from the sources noted in Appendix 4 of the report.

 

b)    Approve moving forward with implementing the list of savings schemes in Appendix 3, in order to establish the budget recommended to the full Council.

 

Minutes:

Submitted by Cllr Ioan Thomas 

 

            DECISION

 

Resolved to:

 

a)    Recommend to the Council (at its meeting on 5 March 2020) that:

 

1.    A budget of £261,837,750 should be set for 2020/21, to be funded by £187,579,040 of Government Grant and £74,258,710 Council Tax income, with an increase of 3.9%.

 

2.    A capital programme of £44,247,260 should be established in 2020/21, to be funded from the sources noted in Appendix 4 of the report.

 

b)    Approve moving forward with implementing the list of savings schemes in Appendix 3, in order to establish the budget recommended to the full Council.

 

DISCUSSION

 

The report was submitted and it was noted that the budget would be submitted to the Full Council at the beginning of March. It was explained that Gwynedd's draft settlement was one of the highest in Wales and better than what had been anticipated. However, it was stated that the draft settlement was insufficient to meet inflation and additional demand on services. It was noted that the settlement in full would be announced by the Government on 25 February.

 

Revenue expenditure was discussed drawing attention to the Discontinuation of Specific Grants and noting that the Government funded schemes with grants and then noted that grants would not continue in the following year and that the money would not be transferred to the settlement either. As a result, it was noted that the Council needed to provide the funding. Attention was drawn to the bids seen under the Pressures on Services heading and the Chief Executive was thanked for his work to examine all bids. It was stated that the budget noted that staff collective agreement adjustments would be abolished completely this year. It was noted that the Pension Fund had received better than expected returns in recent years and, as a result, the Council would not need to add as much into the fund next year.

 

It was explained that savings schemes had been discussed at the Scrutiny Committees over the past few months and it was emphasised that a number of them were contentious. Following these discussions, it was stated that the number of savings schemes had reduced. Attention was drawn to the budget setting table which highlighted the Council's spending needs and that the financial deficit would be met by raising Council tax by 3.9%. As the future was currently so unclear, it was added that there was no need to look further this year and it was recommended for the report to be discussed at the Full Council meeting.

 

Should the settlement be lower than what had been published, the Head of Finance Department added that there were plans to use reserves in order to manage risk. It was stated that balances would not need to be used this year. It was emphasised that there was a lot of uncertainty regarding the future and a budget was needed by the Chancellor. It was stated that the department would return to the Cabinet in May or June to discuss the 2021/22 budget and it would be possible to use reserves if required. However, it was emphasised that the budget was balanced and that the savings proposed would have the least impact on residents.

 

Observations arising from the discussion

¾     It was noted that the Council had been protecting the Education Department over the past few years noting that this would also continue this year.

¾     It was stated that the settlement was better than what had been anticipated but it was emphasised that it was a better settlement, not a good one. It was added that savings continued to be made and over the past ten years it was highlighted that the Council had made savings of £68 million. It was elaborated that Cabinet Members were eager to be in a situation where consideration could be given to investing in services for Gwynedd residents instead of looking at savings on an annual basis.

¾     It was explained that the Council had good financial management and while some authorities were closer to the edge in financial terms, contrary to what had recently been suggested in the Guardian, this was not this Council's case. It was added that the Wales Audit Office was currently undertaking an investigation on how financially sustainable Local Government was.

¾     The department was thanked for the seminars for members. A bid for Charging Points by the Highways department was elaborated upon. It was noted that the period prior to the end of the financial year was a period where it was possible to apply for many grants by the Government but these had a very tight timetable. It was emphasised that it did not give departments the opportunity to plan their work in the long term.

¾     Attention was drawn to the bid for Bodfael bridge noting that the bid was for the construction of a new bridge and that this would improve provision for Gwynedd residents.

 

Awdur:Dafydd L Edwards

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