Agenda item

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

1. To approve the recommendations of the Cabinet, namely:-

(a) Establish a budget of £275,669,610 for 2021/22 to be funded through a Government Grant of £194,793,140 and £80,876,470 of Council Tax income with an increase of 3.7%.

(b) Establish a capital programme of £47,085,960 in 2021/22, to be funded from the sources noted in Appendix 4 of the report.

 

2. That it be noted that the Cabinet Member for Finance, in a decision notice dated 18 November 2020, approved the calculation of the following amounts for 2021/22 in accordance with Regulations made under Section 33 (5) of the Local Government Finance Act 1992 (“The Act”):-

 

(a)    51,885.56 being the amount calculated as Gwynedd's Tax Base 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)    Part of the Council’s Area - Community Tax Base -

 

Aberdaron	542.74		Llanddeiniolen	1,832.32
Aberdyfi	980.22		Llandderfel	496.58
Abergwyngregyn	117.00		Llanegryn	157.54
Abermaw (Barmouth)	1,148.25		Llanelltyd	288.90
Arthog	617.37		Llanengan	2,105.34
Y Bala	771.50		Llanfair	311.58
Bangor	3,844.96		Llanfihangel y Pennant	223.75
Beddgelert	296.64		Llanfrothen	224.08
Betws Garmon	130.44		Llangelynnin	407.39
Bethesda	1,696.45		Llangywer	137.01
Bontnewydd	433.07		Llanllechid	336.00
Botwnnog	448.54		Llanllyfni	1,407.84
Brithdir a Llanfachreth	426.50		Llannor	905.46
Bryncrug	325.38		Llanrug	1,127.82
Buan	224.84		Llanuwchllyn	304.53
Caernarfon	3,596.36		Llanwnda	789.27
Clynnog Fawr	446.26		Llanycil	198.76
Corris	296.99		Llanystumdwy	864.34
Criccieth	931.77		Maentwrog	283.93
Dolbenmaen	603.77		Mawddwy	346.60
Dolgellau	1,233.10		Nefyn	1,458.93
Dyffryn Ardudwy	831.65		Pennal	215.54
Y Felinheli	1,136.66		Penrhyndeudraeth	779.36
Ffestiniog	1,713.50		Pentir	1,260.20
Y Ganllwyd	86.79		Pistyll	259.32
Harlech	769.40		Porthmadog	2,016.47
Llanaelhaearn	449.24		Pwllheli	1,729.10
Llanbedr	336.30		Talsarnau	325.03
Llanbedrog	720.36		Trawsfynydd	499.20
Llanberis	768.82		Tudweiliog	457.21
Llandwrog	1,027.80		Tywyn	1,624.58
Llandygai	1,000.88		Waunfawr	558.03

 

namely the amounts calculated as the Council Tax Base amounts for the year for dwellings in those parts of its area to which one or more special items relate.

 

3. That the following amounts now be calculated by the Council for the year 2021/22 in accordance with Sections 32 to 36 of the Act:-                     

(a)	£409,390,260	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)	£131,672,530	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)	£277,717,730	Being the sum that corresponds with the difference between the above aggregate 3 (a) and the above aggregate 3 (b) calculated by the Council, in accordance with Section 32(4) of the Act, as its budgetary requirements for the year (net budget).
(ch)	£194,297,483	Being the aggregate of the sums which the Council estimates will be payable for the year into its fund in respect of redistributed Non-domestic Rates and Revenue Support Grant, less the estimated cost to the Council of discretionary Non-domestic rate relief granted.
(d)	£1,532.26	Being the amount in 3(c) above, less the sum in 3(ch) above, all divided by the sum noted in 2(a) above, that was calculated by the Council in accordance with 33(1) of the Act, which is the basic amount of Council Tax for the year (Gwynedd Council tax and the average community council tax).
(dd)	£2,543,780	Being the aggregate amount of all special items referred to in Section 34 (1) of the Act (community council precepts).
(e)	£1,483.23	Being the sum in 3(d) above, less the result of dividing the amount in 3(dd) above divided by the amount in 2(a) above, that was calculated by the Council in 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)  For parts of the Council’s area -

 

Aberdaron	1,510.87		Llanddeiniolen	1,500.59
Aberdyfi	1,521.33		Llandderfel	1,501.35
Abergwyngregyn	1,508.87		Llanegryn	1,518.14
Abermaw (Barmouth)	1,535.48		Llanelltyd	1,509.19
Arthog	1,504.29		Llanengan	1,509.35
Y Bala	1,518.23		Llanfair	1,534.58
Bangor	1,584.18		Llanfihangel y Pennant	1,534.74
Beddgelert	1,518.63		Llanfrothen	1,524.73
Betws Garmon	1,503.16		Llangelynnin	1,507.29
Bethesda	1,557.61		Llangywer	1,514.25
Bontnewydd	1,525.95		Llanllechid	1,529.21
Botwnnog	1,497.72		Llanllyfni	1,518.75
Brithdir a Llanfachreth	1,511.37		Llannor	1,503.29
Bryncrug	1,522.75		Llanrug	1,536.43
Buan	1,499.91		Llanuwchllyn	1,529.20
Caernarfon	1,538.42		Llanwnda	1,519.77
Clynnog Fawr	1,523.57		Llanycil	1,503.35
Corris	1,514.65		Llanystumdwy	1,504.06
Criccieth	1,528.31		Maentwrog	1,504.54
Dolbenmaen	1,513.04		Mawddwy	1,510.64
Dolgellau	1,540.00		Nefyn	1,536.18
Dyffryn Ardudwy	1,543.35		Pennal	1,512.74
Y Felinheli	1,518.42		Penrhyndeudraeth	1,536.48
Ffestiniog	1,617.46		Pentir	1,526.87
Y Ganllwyd	1,517.80		Pistyll	1,529.50
Harlech	1,574.21		Porthmadog	1,514.27
Llanaelhaearn	1,538.88		Pwllheli	1,530.08
Llanbedr	1,527.83		Talsarnau	1,550.92
Llanbedrog	1,514.46		Trawsfynydd	1,523.29
Llanberis	1,524.85		Tudweiliog	1,500.73
Llandwrog	1,547.44		Tywyn	1,538.83
Llandygai	1,509.57		Waunfawr	1,504.73

 

being the amounts given by adding the amounts of the item or special items relating to dwellings in those parts of the Council’s area mentioned above, to the sum given in 3(e) 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 part of the Council’s area, the figures noted in Appendix 1 (see Appendix 1 to Appendix 11 to Item 11 on the Council agenda), 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 2021/22 the North Wales Police and Crime Commissioner has stated the following amounts in a precept issued to the Council, in accordance with Section 40 of the Act, 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
	203.70	237.65	271.60	305.55	373.45	441.35	509.25	611.10	712.95

 

5.  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 Act, hereby sets the amounts noted in Appendix 2 (see Appendix 2 to Appendix 11 to Item 11 on the Council agenda) as the amounts of Council Tax for the year 2021/22 for each of the categories of dwellings shown in the Appendix.

 

The Cabinet Member for Finance submitted:-

 

·         A report recommending a budget for the Council's approval for 2021/22;

·         The draft decision on the Council Tax based on the Cabinet's recommendation to the Council (based on an increase of 3.7%), along with tables showing the Council Tax level and the increase per community.

 

As the Council had resolved to charge a 100% Premium on second-homes and homes that have been empty for 12 months or more (under item 8 above), the Head of Finance asked the Council to approve the 100% Premium version of the recommendation, as noted in the report.

 

Members were reminded of some of the main risks in Appendix 10 of the report, and the Head of Finance confirmed, after considering all risks and mitigation steps, that he was of the opinion that the Council's Budget for 2021/22 was sound, sufficient and achievable.

 

During the discussion, members supported the proposal on the basis:-

 

·         That increasing the Council Tax by 3.7% would enable the Council to avoid the risk of failing to respond to the requirements of the new Additional Learning Needs Act on the grounds that no resources were received from Welsh Government to meet the increase in the need for a statutory provision.

·         If the Council did not increase Council Tax by 3.7%, there would be a need to cut the services for the people who were in greatest need of support. A mammoth task had been carried out over the past year to support businesses because of Covid and Brexit, and there was no wish to see the Business Support Service being cut.

·         Although they did not wish to increase the tax, the result of not doing so would be worse, and they certainly did not wish to see further cuts to services.

·         That support was available from the Council for those who found it difficult to pay Council Tax.

·         That it would not be prudent to increase the tax by any less, in the hope that Welsh Government would provide additional money over the coming months.

·         That an increase of less than 3.7% in Council Tax would mean that the Children and Supporting Families Service would be at risk of putting children at risk.

·         That 3.7% was the smallest increase that could be set to keep services going, let alone develop them.

 

Other members objected to the proposal on the basis:-

 

·         That those people on low salaries, but just above the level where they could claim benefits, suffered the most, and that a plan was needed to help those people.

·         That it would be very difficult to increase Council Tax this year, considering that businesses had been unable to open, people had lost their jobs and workers on furlough had lost 20% of their income.

·         If councils wished to have more money from the Government over the coming months, a smaller increase in Council Tax should be considered.

·         That the 3.7% increase was terribly high, and between the pandemic, the flooding and everything, it would have been expected to be closer to 2.7% this year. 

·         That the Council could have saved tens of thousands of pounds if it had prevented staff from taking Council vehicles home, and that there was a need to look at wasteful practices and stop them.

 

In response to questions from individual members, it was explained:-

 

·         That it was premature to say what the impact of the Chancellor's Budget would be on Gwynedd. The officers were currently analysing the figures, but it was more difficult to assess the impact as the money came to local authorities through Welsh Government. However, one could be relatively confident that the Council would receive money to assist with the implications of the Covid crisis.

·         That some councils in Wales had decided to set a smaller increase to their Council Tax as a result of receiving one-off grants. To an extent, it was believed that those councils were taking an element of risk, and would be making cuts or efficiency savings next year in order to be able to continue keeping the tax at more or less the same level. Gwynedd had been increasing the Tax consistently below the Welsh average each year, and subject to the outcome of the staff salary agreement, etc., it was possible by this time next year, that the Council would be in a better position to see less of an increase in Council Tax than those other councils.

·         That the Council was in discussions with the banks about the possibility of negative interest rates. It was likely that the Council was receiving protection from the current contracts, but when the time came to renegotiate contracts, it was likely that there would be an increased cost.

 

RESOLVED

1.       To approve the recommendations of the Cabinet, namely:-

(a)   Establish a budget of £275,669,610 for 2021/22 to be funded through a Government Grant of £194,793,140 and £80,876,470 of Council Tax income with an increase of 3.7%.

(b)    Establish a capital programme of £47,085,960 in 2021/22, to be funded from the sources noted in Appendix 4 of the report.

 

2.       That it be noted that the Cabinet Member for Finance, in a decision notice dated 18 November 2020, had approved the calculation of the following amounts for 2021/22 in accordance with Regulations made under Section 33 (5) of the Local Government Finance Act 1992 (“The Act”):-

 

(a)    51,885.56 being the amount calculated as Gwynedd's Tax Base 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)   Part of the Council’s Area - Community Tax Base -

 

Aberdaron	542.74		Llanddeiniolen	1,832.32
Aberdyfi	980.22		Llandderfel	496.58
Abergwyngregyn	117.00		Llanegryn	157.54
Abermaw (Barmouth)	1,148.25		Llanelltyd	288.90
Arthog	617.37		Llanengan	2,105.34
Y Bala	771.50		Llanfair	311.58
Bangor	3,844.96		Llanfihangel y Pennant	223.75
Beddgelert	296.64		Llanfrothen	224.08
Betws Garmon	130.44		Llangelynnin	407.39
Bethesda	1,696.45		Llangywer	137.01
Bontnewydd	433.07		Llanllechid	336.00
Botwnnog	448.54		Llanllyfni	1,407.84
Brithdir a Llanfachreth	426.50		Llannor	905.46
Bryncrug	325.38		Llanrug	1,127.82
Buan	224.84		Llanuwchllyn	304.53
Caernarfon	3,596.36		Llanwnda	789.27
Clynnog Fawr	446.26		Llanycil	198.76
Corris	296.99		Llanystumdwy	864.34
Criccieth	931.77		Maentwrog	283.93
Dolbenmaen	603.77		Mawddwy	346.60
Dolgellau	1,233.10		Nefyn	1,458.93
Dyffryn Ardudwy	831.65		Pennal	215.54
Y Felinheli	1,136.66		Penrhyndeudraeth	779.36
Ffestiniog	1,713.50		Pentir	1,260.20
Y Ganllwyd	86.79		Pistyll	259.32
Harlech	769.40		Porthmadog	2,016.47
Llanaelhaearn	449.24		Pwllheli	1,729.10
Llanbedr	336.30		Talsarnau	325.03
Llanbedrog	720.36		Trawsfynydd	499.20
Llanberis	768.82		Tudweiliog	457.21
Llandwrog	1,027.80		Tywyn	1,624.58
Llandygai	1,000.88		Waunfawr	558.03

 

namely the amounts calculated as the Council Tax Base amounts for the year for dwellings in those parts of its area to which one or more special items relate.

 

3. That the following amounts now be calculated by the Council for the year 2021/22 in accordance with Sections 32 to 36 of the Act:-

(a)	£409,390,260		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)	£131,672,530		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)	£277,717,730		Being the sum that corresponds with the difference between the above aggregate 3 (a) and the above aggregate 3 (b) calculated by the Council, in accordance with Section 32(4) of the Act, as its budgetary requirements for the year (net budget).
(ch)	£194,297,483		Being the aggregate of the sums which the Council estimates will be payable for the year into its fund in respect of redistributed Non-domestic Rates and Revenue Support Grant, less the estimated cost to the Council of discretionary Non-domestic rate relief granted.
(d)	£1,532.26		Being the amount in 3(c) above, less the sum in 3(ch) above, all divided by the sum noted in 2(a) above, that was calculated by the Council in accordance with 33(1) of the Act, which is the basic amount of Council Tax for the year (Gwynedd Council tax and the average community council tax).
(dd)	£2,543,780		Being the aggregate amount of all special items referred to in Section 34 (1) of the Act (community council precepts).
(e)	£1,483.23		Being the sum in 3 (d) above, less the result of dividing the amount in 3(dd) above divided by the amount in 2(a) above, that was calculated by the Council in 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) For parts of the Council’s area -

 

 

being the amounts given by adding the amounts of the item or special items relating to dwellings in those parts of the Council’s area mentioned above, to the sum given in 3(e) 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 part 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 2021/22 the North Wales Police and Crime Commissioner has stated the following amounts in a precept issued to the Council, in accordance with Section 40 of the Act, 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
	203.70	237.65	271.60	305.55	373.45	441.35	509.25	611.10	712.95

 

5.  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 Act, hereby sets the amounts noted in Appendix 2 as the amounts of Council Tax for the year 2021/22 for each of the categories of dwellings shown in the Appendix.