Agenda item

To submit the report of the Cabinet Member for Finance  (attached).

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

 

 

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.