To submit the report of the Cabinet Member for Finance (attached).
Minutes:
The Cabinet Member for Finance submitted:-
·
A report recommending a budget
for the Council's approval for 2020/21;
·
The draft decision on the
Council Tax based on the Cabinet's recommendation to the Council (based on an
increase of 3.9%), along with tables showing the Council Tax level and the
increase per community.
The Cabinet Member
thanked the staff of the Finance Department, and specifically the Senior
Finance Manager and the rest of the support team, for all of their work during
the Head of Finance's absence.
During the discussion the following matters were raised by individual
members:-
·
It was noted that Fairbourne had become known worldwide as the village
without a future, and that the effect of the Council's Shoreline Management
Plan meant that houses in Fairbourne had almost lost
a third of their value. The Community Council was angry that the Council Tax
continued to rise, although the village had been condemned by Gwynedd Council,
and they called for a reduction in the Tax. In response, it was noted that it
was important to underline that it was not the Council who had condemned Fairbourne. What the Council had done; however, was
highlight the risk that the village was facing in the future. In relation to
the Council Tax, the only way of receiving a reduction would be for the Valuer to reconsider the bands, and it was vowed that the
Council would contact the Valuer on behalf of the
people of Fairbourne to ask them to come there to
consider the situation.
·
It was noted that the
Council had been facing cuts and more cuts for 12 years now, and that the
continuous increases in the Tax were having a serious impact on those people on
low salaries. An enquiry was made asking
when the Council intended to stand as one against the cuts that were coming
from the direction of Cardiff and Westminster. In response, it was noted that
the observations were understood, but that the Council had to set a balanced
budget, and that it was lobbying constantly via the WLGA and a number of other
bodies.
·
It was noted that Band D Council Tax in Gwynedd had risen
from £889 in 2004 to £1,699 in 2018. Only five other Councils in Wales had
higher Band D tax levels than Gwynedd, and this county had very deprived areas.
The salaries of the general population in Gwynedd had not increased, and
although Council staff had recently received a pay raise, this was taken away
from them through the increase in the tax. The impact of increasing taxes, as
well as charging for parking in the towns, was having a huge impact on the
businesses of Gwynedd. It was felt that
nobody was taking responsibility for taxes in Wales and Welsh Government was
continuing with the model of giving councils the freedom to increase the rates
without noticing the impact this had on people. A reduced disposable income
meant that less expenditure happened in our economy, and this, in turn, led to
fewer jobs for people, fewer people paying rates, etc.
·
It was noted that the Council's main expenditure was
in the care field, in particular in the older people field, and from
understanding that, it was not possible to see how the public could object to
the increase in the Council Tax. The officers were also thanked for listening
to the views of the care scrutinisers and for doing their best for the people
of Gwynedd.
·
It was noted that the
Council had lost approximately £70m of its budget over the past 10 years, and
that major work undertaken through the WLGA in an attempt to convince the
decision-making politicians in Cardiff of the need for local government to be
appropriately funded. Local government had been at the bottom of the list every
time; however, this year, as a result of presenting a very strong case to the
Government, we had succeeded to obtain a slightly fairer grant settlement. It
was emphasised that pride should be taken in the effectiveness of this Council
and its budgetary solidity, and it was noted that Gwynedd Council was being
acknowledged as one of the most prudent and responsible councils in Wales.
·
In response to an
observation that the recommendation to increase the tax by 3.9% was much higher
than general inflation, which was slightly over 2.5%, it was explained that an
increase in the demand in the fields of children and adults was mainly to
account for this.
·
It was noted that the
Westminster Government did not look after Wales at all. Wales had the worst child poverty levels in
Britain and a quarter of the population of Wales now lived in poverty. The
people of Wales had the lowest life expectancy and Wales was the most
economically deprived country in Britain, and had the dampest and coldest
housing in Europe. Children's health in Wales was worsening annually and Wales
was also losing its language.
·
It was emphasised that
nobody wished to see an increase in the Council Tax, but the Council had no
other choice as the Barnett Formula placed Wales at the bottom of the pile
every time. It was also noted that it was important to make public to the
county that this Chamber and this Council were challenging the formula.
·
With reference to capital
bid 1 - Provision of public vehicle charging points (Appendix 2c to the
report), it was noticed that many car parks were not eligible for a grant, and
an enquiry was made regarding the criteria for qualifying for the grant. In
response, it was noted that a grant was available from the Government to
provide some charging points; however, the Council, and the National Park
Authority, wished to supply charging points in places that were not eligible
for the grant funding.
·
It was noted that a lengthy and beneficial discussion
had been held at the Audit and Governance Committee about the method of setting
the tax, and it had been agreed there that a 3.5% increase would strike a deal.
Soon after those discussions, an additional bid had been received from the
Housing Department, and it was understood that this was the reason for the
recommended increase of 3.9% in the Tax, which was 0.4% higher than what had
been recommended originally. The objective of the additional bid was unclear,
but it was not believed that it would justify supporting a 3.9% increase in the
Tax. For that purpose, the member who made that comment noted that he would
propose an increase of 3.5%. In response, it was explained that the purpose of
the Housing Department's bid was to fund temporary accommodation for homeless
people, and unless the Council would fund the bid, those people would remain
homeless. It was also explained that the
bid had come to hand on the day after the first in a series of member workshops
held to discuss the budget, and that this had been communicated via e-mail to
the members who had attended that first workshop, by the date of the Audit and
Governance Committee, where the proposal to increase 3.9% was supported. In
terms of proposing amendments to the budget and the Tax increase, it was
explained that the procedure asked for 2 days' written notice of any amendments
proposed, so as to enable a fair opportunity to consider the implications.
·
It was noted that the
Council had voted unanimously earlier on when adopting the Council Plan 2019-23
(2020/21 Review), therefore, it would be sensible for the members to vote in
favour of the budget that would allow the Council to realise those plans.
Whilst reiterating the substantial concerns that the Council had had to
make cuts year on year, and whilst agreeing that it was completely necessary to
continue to challenge the Cardiff and Westminster governments, many members
expressed their willingness to support the budget; however, that they did so
with a heavy heart.
RESOLVED
1.
To approve the recommendations
of the Cabinet as noted in the report.
2.
It be noted that
the Cabinet Member for Finance, in a decision notice dated 11 November 2019,
approved the calculation of the following amounts for 2020/21 in accordance
with Regulations made under Section 33 (5) of the Local Government Finance Act
1992 (“The Act”):-
(a) 51,917.91
being the amount calculated in accordance with the Local Authorities
(Calculation of Council Tax Base) (Wales) Regulations 1995 as amended, as its
Council Tax base for the year.
(b) Parts
of the Council’s Area – Communities Tax Base -
Aberdaron |
547.61 |
|
Llanddeiniolen |
1,832.47 |
Aberdyfi |
981.63 |
Llandderfel |
497.41 |
|
Abergwyngregyn |
117.58 |
Llanegryn |
162.93 |
|
Abermaw (Barmouth) |
1,154.44 |
Llanelltyd |
292.05 |
|
Arthog |
629.90 |
Llanengan |
2,110.47 |
|
Y Bala |
780.58 |
Llanfair |
306.29 |
|
Bangor |
3,844.14 |
Llanfihangel y Pennant |
218.27 |
|
Beddgelert |
306.63 |
Llanfrothen |
224.99 |
|
Betws Garmon |
134.95 |
Llangelynnin |
413.24 |
|
Bethesda |
1,664.32 |
Llangywer |
137.48 |
|
Bontnewydd |
437.65 |
Llanllechid |
344.29 |
|
Botwnnog |
444.04 |
Llanllyfni |
1,405.19 |
|
Brithdir a Llanfachreth |
419.04 |
Llannor |
901.31 |
|
Bryncrug |
337.30 |
Llanrug |
1,124.21 |
|
Buan |
224.70 |
Llanuwchllyn |
307.41 |
|
Caernarfon |
3,556.57 |
Llanwnda |
796.76 |
|
Clynnog Fawr |
449.14 |
Llanycil |
193.56 |
|
Corris |
301.71 |
Llanystumdwy |
866.96 |
|
Criccieth |
944.20 |
Maentwrog |
281.18 |
|
Dolbenmaen |
618.47 |
Mawddwy |
352.78 |
|
Dolgellau |
1,224.77 |
Nefyn |
1,453.53 |
|
Dyffryn Ardudwy |
802.28 |
Pennal |
220.28 |
|
Y Felinheli |
1,146.20 |
Penrhyndeudraeth |
781.77 |
|
Ffestiniog |
1,735.84 |
Pentir |
1,243.77 |
|
Y Ganllwyd |
91.23 |
Pistyll |
249.91 |
|
Harlech |
775.51 |
Porthmadog |
2,022.66 |
|
Llanaelhaearn |
443.62 |
Pwllheli |
1,736.18 |
|
Llanbedr |
329.38 |
Talsarnau |
327.52 |
|
Llanbedrog |
720.23 |
Trawsfynydd |
498.88 |
|
Llanberis |
773.86 |
Tudweiliog |
464.83 |
|
Llandwrog |
1,033.56 |
Tywyn |
1,617.43 |
|
Llandygai |
996.31 |
|
Waunfawr |
564.51 |
being the
amounts calculated as the amounts of its Council Tax base for the year for
dwellings in those parts of its area to which one or more special items relate.
3. That the following amounts be now calculated by the
Council for the year 2020/21 in accordance with Sections 32 to 36 of the Act:-
(a)
£392,527,390 |
Being
the aggregate of the amounts which the Council estimates for the items set
out in Section 32(2)(a) to (e) of the Act (gross
expenditure). |
(b)
£128,663,670 |
Being
the aggregate of the amounts which the Council estimates for the items set
out in Section 32(3)(a) to (c) of the Act (income). |
(c)
£263,863,720 |
Being
the amount by which the aggregate at 3(a) above exceeds the aggregate at 3(b)
above, calculated by the Council, in accordance with Section 32(4) of the
Act, as its budget requirement for the year (net budget). |
(ch) £187,100,978 |
Being
the aggregate of the sums which the Council estimates will be payable during
the year into its fund in respect of the National Non-Domestic Rates and
Revenue Support Grant, less the estimated cost to the Council of
discretionary non-domestic rate relief granted. |
(d)
£1,478.54 |
Being
the amount at 3(c) above less the amount at 3(ch)
above, all divided by the amount at 2(a) above, calculated by the Council, in
accordance with Section 33(1) of the Act, as the basic amount of its council
tax for the year. (Gwynedd Council tax and average community council tax). |
(dd) £2,504,030 |
Being
the aggregate amount of all special items referred to in Section 34(1) of the
Act (community council precepts). |
(e)
£1,430.31 |
Being
the amount at 3(d) above less the result given by dividing the amount at 3(dd) above by the amount at 2(a) above, calculated by the
Council, in accordance with Section 34(2) of the Act, as the basic amount of
its Council Tax for the year for dwellings in those parts of its area to
which no special item relates (Band D for Gwynedd Council tax only). |
(f) Parts of the Council’s Area – Community
Aberdaron |
1,457.70 |
|
Llanddeiniolen |
1,447.66 |
Aberdyfi |
1,467.79 |
Llandderfel |
1,448.40 |
|
Abergwyngregyn |
1,455.82 |
Llanegryn |
1,464.07 |
|
Abermaw (Barmouth) |
1,482.28 |
Llanelltyd |
1,455.99 |
|
Arthog |
1,450.15 |
Llanengan |
1,456.37 |
|
Y Bala |
1,462.34 |
Llanfair |
1,482.55 |
|
Bangor |
1,531.29 |
Llanfihangel y Pennant |
1,482.08 |
|
Beddgelert |
1,466.18 |
Llanfrothen |
1,467.20 |
|
Betws Garmon |
1,449.58 |
Llangelynnin |
1,454.03 |
|
Bethesda |
1,499.74 |
Llangywer |
1,459.41 |
|
Bontnewydd |
1,472.58 |
Llanllechid |
1,473.88 |
|
Botwnnog |
1,444.95 |
Llanllyfni |
1,465.06 |
|
Brithdir a Llanfachreth |
1,451.79 |
Llannor |
1,450.46 |
|
Bryncrug |
1,467.69 |
Llanrug |
1,483.68 |
|
Buan |
1,447.00 |
Llanuwchllyn |
1,466.09 |
|
Caernarfon |
1,486.12 |
Llanwnda |
1,465.45 |
|
Clynnog Fawr |
1,465.93 |
Llanycil |
1,450.98 |
|
Corris |
1,461.23 |
Llanystumdwy |
1,451.07 |
|
Criccieth |
1,474.79 |
Maentwrog |
1,451.83 |
|
Dolbenmaen |
1,459.41 |
Mawddwy |
1,455.31 |
|
Dolgellau |
1,487.46 |
Nefyn |
1,481.91 |
|
Dyffryn Ardudwy |
1,492.63 |
Pennal |
1,459.18 |
|
Y Felinheli |
1,465.21 |
Penrhyndeudraeth |
1,480.84 |
|
Ffestiniog |
1,565.69 |
Pentir |
1,470.51 |
|
Y Ganllwyd |
1,463.19 |
Pistyll |
1,476.33 |
|
Harlech |
1,520.57 |
Porthmadog |
1,461.25 |
|
Llanaelhaearn |
1,486.66 |
Pwllheli |
1,475.24 |
|
Llanbedr |
1,475.85 |
Talsarnau |
1,497.48 |
|
Llanbedrog |
1,460.16 |
Trawsfynydd |
1,470.40 |
|
Llanberis |
1,469.08 |
Tudweiliog |
1,447.52 |
|
Llandwrog |
1,492.23 |
Tywyn |
1,486.16 |
|
Llandygai |
1,455.81 |
|
Waunfawr
|
1,451.57 |
being the amounts given by adding to the amount at
3(e) above the amounts of the special item or items relating to dwellings in
those parts of the Council’s area mentioned above divided in each case by the
amount of 2(b) above, calculated by the Council, in accordance with Section
34(3) of the Act, as the basic amounts of its Council Tax for the year for
dwellings in those parts of its area to which one or more special items relate.
(ff) In respect of parts of the Council’s area, the
figures noted in Appendix 1, being the amounts given by multiplying the sums
specified in 3(f) above by the number which, in the proportion set out in
Section 5 (1) of the Act, is applicable to dwellings listed in a particular
valuation band divided by the number which in that proportion is applicable to
dwellings listed in valuation band D, calculated by the Council, in accordance
with Section 36(1) of the Act, as the amounts to be taken into account for the
year in respect of categories of dwellings listed in different valuation bands.
4. That it be noted that for the year 2020/21 the
Police and Crime Commissioner for North Wales have stated the following amounts
in a precept issued to the Council, in accordance with Section 40 of the Local Government
Finance Act, 1992, for each of the categories of dwellings shown below.
|
Band A |
Band B |
Band C |
Band D |
Band E |
Band F |
Band G |
Band H |
Band I |
|
193.74 |
226.03 |
258.32 |
290.61 |
355.19 |
419.77 |
484.35 |
581.22 |
678.09 |
5. That, having calculated the aggregate in each case
of the amounts at 3(ff) and 4 above, the Council, in
accordance with Section 30(2) of the Local Government Finance Act, 1992, hereby
sets the amounts noted in Appendix 2 as the amounts of Council Tax for the year
2020/21 for each of the categories of dwellings shown therein.
Supporting documents: