To submit the report of the Head of Finance.
Minutes:
The report was submitted by the Cabinet
Member for Finance which outlined the budget for 2020/21. It was expressed that
the work of planning the budget had commenced in June, and that projections in
July had highlighted the need for savings schemes. It was explained that
savings schemes had been discussed at the Scrutiny Committees over the past few
months and that a number of savings schemes had reduced as some schemes were
contentious. It was explained that the budget had been discussed in a series of
workshops where all members were invited and the report would be submitted to
the Cabinet on 18 February.
The Head of Finance Department added that the
budget would be submitted to the Full Council at the beginning of March. It was
explained that the draft settlement was better than what had been anticipated
and covered inflation. However, it was stated that the draft settlement was
insufficient to meet the additional demand on services in the care field. It
was noted that the final settlement would be announced by the Government on 25
February.
The Additional Expenditure requirements table
was discussed and attention was drawn to the main headings. In terms of Salary
Inflation, it was expressed that there would be a salary increase of over 2% in
line with the national projection, along with an increase in the employers
pension contribution to the Teachers’ Pensions Scheme. It was noted that the
Pension Fund had received better than expected returns in recent years and, as
a result, the Council would not contribute as much as an employer into the Fund
next year. It was expressed that the net figure for schools indicated different
positions in different sectors, with a reduction in the number of pupils in
primary schools but an increase in the number of pupils in secondary schools.
Attention was drawn to the Discontinuation of Specific Grants, noting that the
Government funded schemes with grants and then noting that grants would not
continue in the following year, and in the case of the child care preventative
grant, the money would not be transferred to the settlement either, and the
Council, as a result, would need to provide the funding. Attention was drawn to
the bids seen under the Pressures on Services heading noting that the level of
service in the care departments highlighted the additional demand for services.
It was explained that there was a bid for the Homelessness Service, and if an
additional grant would be proposed for this field, it was stated that it would
be possible to withdraw the bid. It was stated that the budget noted that staff
collective agreement adjustments would be abolished completely this year.
Attention was drawn to the Budget Setting
table which highlighted the Council's spending needs, and it was explained that
the financial deficit would be met by raising Council tax by 3.9%. It was
elaborated by stating that the Council Tax increase rate in Gwynedd over the
years had been lower than the Welsh average. It was stated that a good
consensus had been highlighted at the Budget Workshops held, and the
recommendation had been supported by the majority of Council members following
these discussions.
The Head of Finance Department added that Council's balances had been a
key instrument which allowed the Council to wait and see the grant settlement
situation, before even considering any level of savings above the £2 million. It
was explained that balances had bought time and had avoided scaremongering
about cuts that were not required for 2020/21. It was added that keeping the
balances would allow the use of the same tactics again for the 2021/22 budget.
He stated that no Medium Term Strategy had been submitted with the budget this
year, as there was uncertainty about the future in advance of the Westminster
Government Chancellor's budget that would be announced on 11 March. He
confirmed that the budget for 2020/21 was balanced.
Members were given an opportunity to ask
questions and offer observations. During the discussion, the following main
points were highlighted:
· The Head of
Finance was asked about Transfers to the Settlement and Discontinuation of
Specific Grants and he elaborated on what exactly these were. In terms of
transfers to the settlement, it was noted that these were continuing grants but
that the funding would be transferred to the Council's general grant along with
relevant responsibilities. It was highlighted that there were some specific
grants where the Council was expected to commit to additional expenditure and
that the Council was expected to provide funding when the grants ended.
·
It was asked why
Housing Schemes in the capital programme was halving in 2021/22. It was stated
that it was inconsistent and slipped from year to year.
·
Concern was noted
about many specific grants in the care field from Welsh Government, noting that
there were no specific schemes for the future.
·
It was highlighted
that the budget was clear and officers from the Finance Department were thanked
for their work and support.
RESOLVED
to note and accept the report.
Supporting documents: