Agenda item

To submit the report of the Cabinet Member for Finance.

 

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

(a) A budget of £295,232,820 should be set for 2022/23, to be funded by £213,210,400 of Government Grant and £82,022,420 of Council Tax income, with an increase of 2.95%.

(b) Establish a capital programme of £59,074,980 in 2022/23, to be funded from the sources set out in Appendix 4 of the report.

 

2. That it be noted that the Cabinet Member for Finance, in a decision notice dated 9 November, 2021, approved the calculation of the following amounts for 2022/23 in accordance with Regulations made under Section 33 (5) of the Local Government Finance Act 1992 (“The Act”):-

 

(a) 53,715.10 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	571.25		Llanddeiniolen	1,840.10
Aberdyfi	1,095.65		Llandderfel	501.76
Abergwyngregyn	124.71		Llanegryn	164.55
Abermaw (Barmouth)	1,210.43		Llanelltyd	308.89
Arthog	654.41		Llanengan	2,289.52
Y Bala	781.39		Llanfair	335.58
Bangor	3,974.34		Llanfihangel y Pennant	232.58
Beddgelert	323.40		Llanfrothen	233.04
Betws Garmon	138.27		Llangelynnin	433.07
Bethesda	1,701.20		Llangywer	145.28
Bontnewydd	436.43		Llanllechid	348.06
Botwnnog	460.05		Llanllyfni	1,425.75
Brithdir a Llanfachreth	457.62		Llannor	906.33
Bryncrug	340.19		Llanrug	1,137.62
Buan	227.96		Llanuwchllyn	316.77
Caernarfon	3,640.35		Llanwnda	807.58
Clynnog Fawr	470.35		Llanycil	205.27
Corris	305.84		Llanystumdwy	885.48
Criccieth	972.85		Maentwrog	303.24
Dolbenmaen	624.58		Mawddwy	362.81
Dolgellau	1,275.63		Nefyn	1,535.07
Dyffryn Ardudwy	817.14		Pennal	231.82
Y Felinheli	1,165.68		Penrhyndeudraeth	792.98
Ffestiniog	1,786.14		Pentir	1,272.62
Y Ganllwyd	88.69		Pistyll	264.01
Harlech	821.55		Porthmadog	2,160.67
Llanaelhaearn	466.26		Pwllheli	1,779.02
Llanbedr	351.64		Talsarnau	343.74
Llanbedrog	780.02		Trawsfynydd	506.49
Llanberis	788.78		Tudweiliog	478.76
Llandwrog	1,051.46		Tywyn	1,691.37
Llandygai	1,001.64		Waunfawr	569.37

                                      

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 2022/23 in accordance with Sections 32 to 36 of the Act:-

                       

(a)	£443,927,600	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)	£146,536,120	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)	£297,391,480	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)	£212,714,737	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)	£1,576.40	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)	£2,654,323.06	Being the aggregate amount of all special items referred to in Section 34(1) of the Act (community council precepts).
(e)	£1,526.99	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 (see Appendix 1 to Appendix 11 to Item 9 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 2022/23 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
	211.20	246.40	281.60	316.80	387.20	457.60	528.00	633.60	739.20

 

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 (see Appendix 2 to Appendix 11 to Item 9 on the Council agenda) as the amounts of Council Tax for the year 2022/23 for each of the categories of dwellings shown therein. 

 

The Chair noted, in line with the Constitution, that the Head of Finance had to receive notice of any amendment to the budget in writing in advance, and that this amendment had to lead to a balanced budget, if it was to be discussed.  All Council members had been reminded of this the previous week, and as the Head of Finance had not received any notice of an amendment by the designated deadline, it would not be possible for the Council to consider any amendment to the budget.

 

The Cabinet Member for Finance, Councillor Ioan Thomas submitted the following:-

 

·         A report recommending a budget for the Council's approval for 2022/23;

·         The draft decision on the Council Tax based on the Cabinet's recommendation to the Council (based on an increase of 2.95%), along with tables showing the Council Tax level and the increase per community.

 

The Head of Finance reminded the members of some of the main risks in Appendix 10 of the report, and he confirmed, having considered all risks and mitigation steps, that he was of the opinion that the Council Budget for 2022/23 was sound, sufficient and deliverable.

 

Members were given an opportunity to make observations and ask questions.

 

The following matters were raised by individual members:

 

·         A question was asked about how much less the Council Tax increase would have been if the Council had not approved 1 March as an additional day's leave for staff.  In response, it was explained that the expenditure on allowing a holiday on St David's Day was expenditure from the current financial year, and as explained to the Cabinet and the Audit and Governance Committee, it had been funded from an underspend in specific corporate budgets. It was explained that the maximum of £200,000 earmarked for that was a one-off bid, and that no decision had been made to fund the bank holiday on 1 March every year.  As a result, it would not have had any impact on the budget submitted before the Council.

·         It was noted that the Council had transferred the cost of the additional day of leave for staff to the next financial year in order to reduce the tax increase, and it was asked how much £200,000 would be as a percentage of the tax.  In response, it was explained, in brief, that a 1% increase (or reduction) in Council Tax equated to around £800,000, so £200,000 would be around 0.25%.

·         It was noted that the people of Gwynedd were angry that the Council had approved an additional day's leave for staff, and that the timing of this had been disgraceful.

·         It was noted, although the fact that money was available to spend on various bids this year, it was the greatest disappointment that general members were not given an opportunity to weigh up those bids in workshops similar to the cuts workshops held in the past, since the input of members could have led to a situation where the Council would not be looking at voting for a tax increase of 2.95%.  In response, it was noted that every member of the Council had been given the opportunity to attend seminars on the budget, where information had been shared about the bids.

·         It was argued that the seminars did not provide an opportunity to consider the bids properly, and instead, the members had been guided through the figures.

·         It was noted, although the Welsh Government announcement that a living costs support payment of £150 would be available for every household residing in properties in Council Tax bands A-D, that this highlighted that the current system did not work.  Also welcomed was the announcement made by the Government and Plaid Cymru that a change would happen in this field, and it was emphasised that this should happen as soon as possible.

·         It was suggested that consideration should be given to allowing a Council Tax discount of more than 25% for single persons as it was much more difficult to pay bills when a household only had one salary.

·         It was noted that nurses, who had worked so hard throughout the pandemic, would only receive a 2% pay increase this year, whilst councillors received 16%, which would cost around £160,000 extra for the Council.  In response, it was explained that the Independent Remuneration Panel for Wales, and not the Council, was responsible for determining the allowances payable to elected members.

·         It was asked whether the Council's reserves could be used for one year in order to delay the increase in Council Tax.  In response, it was explained that £7m in general balances had been earmarked and other funds had been created for specific purposes.  In terms of the funds that had been earmarked, £72m out of the £79m was there for specific reasons for the future.  It was explained that using our reserves to avoid increasing the Council Tax was not a permanent answer, and should the Council start using reserves to fill gaps, the gap would always be there. 

·         It was asked whether it would be possible for us to live on what we had for a year, and see how things would be from next year onwards.  In response, it was noted that the Council had received a relatively good settlement this year; however, the settlement for next year and the following year would be very difficult.

 

Members objected to the proposal to raise Council Tax by 2.95% on the following grounds:-

 

·         That the Council had increased the tax by 40% over the past 10 years, but it offered fewer services than it did 10 years ago.

·         That the situation was at crisis point in Gwynedd, with the costs of energy, fuel and food increasing more than ever, with an increasing number reliant on food banks.

·         That farmers and rural businesses were working so hard, but received no support from any source.

·         That we were living in ivory towers in Gwynedd Council, and maybe that we did not fully appreciate the circumstances of people in the county.

·         That we would have hoped that an increase of around 1% would have sufficed this year to maintain services with the reserves we had, in order to convey the message that we are concerned about our residents' circumstances.

·         That this was not the correct time to increase the tax, particularly as people had gone through the hardship of the pandemic, and this would create more stress and worry for hard-working families.

 

Other members supported the proposal on the following grounds:-

 

·         That everyone had been given an opportunity to submit alternative proposals on a balanced budget, but that nobody had submitted any other ideas, or made suggestions as to where the Council should make cuts in order to avoid increasing the tax.

·         Unless the proposal was accepted, then more essential services for the vulnerable people of Gwynedd would have to be cut.

·         That the only option was to accept the budget as it stood so that the people of Gwynedd received the best service that could be offered to them under the circumstances.

·         That the Council Tax system was not a Gwynedd Council system, and that all members were there to improve the lives of the people of the county.

·         That a finger needed to be pointed to the Westminster Government and to call for independence for Wales so that we could run our own budget in our own nation.

 

In response to a question, the Monitoring Officer confirmed that it was not possible to separate the recommendation on setting the budget from the recommendation on setting the capital programme. He explained that if either recommendation fell, the other would subsequently fall, since both matters were interrelated.

 

To close, the Cabinet Member noted:-

 

·         Although a better than expected settlement was received this year, acknowledgement had come from the seminars and the Audit and Governance Committee that services had been under pressure, and this was the main reason why a smaller increase in the Council Tax could not be recommended.

·         That he was concerned about the circumstances of the county's residents and he emphasised that anyone who was experiencing difficulties in paying the tax should contact the Finance Department.

 

A registered vote was called for on the motion.

 

Councillor Stephen Churchman noted that he had just returned to the meeting after leaving for almost an hour, and he asked whether he had the right to vote. In response, the Monitoring Officer explained that he had the right to vote, provided that he was confident that he was aware of the content of the report, etc.  The member confirmed that he had prepared thoroughly before the meeting.

 

According to Procedural Rules, the following vote on the motion was recorded:

 

In favour (36) Councillors:- Craig ab Iago, Menna Baines, Beca Brown, Stephen Churchman, Steve Collings, Annwen Daniels, Elwyn Edwards, Aled Evans, Simon Glyn, Gareth Wyn Griffith, Selwyn Griffiths, Annwen Hughes, R. Medwyn Hughes, Judith Humphreys, Nia Jeffreys, Peredur Jenkins, Aled Wyn Jones, Berwyn Parry Jones, Elin Walker Jones, Gareth Tudor Morris Jones, Huw Wyn Jones, Cai Larsen, Dafydd Meurig, Dilwyn Morgan, Linda Morgan, Dafydd Owen, Edgar Wyn Owen, Gwynfor Owen, Dewi Wyn Roberts, Mair Rowlands, Paul Rowlinson, Dyfrig Siencyn, Gareth Thomas, Ioan Thomas, Cemlyn Williams and Gethin Glyn Williams.

 

Against (30) – Councillors:- Dylan Bullard, R. Glyn Daniels, Anwen Davies, Dylan Fernley, Peter Antony Garlick, Alwyn Gruffydd, John Brynmor Hughes, Louise Hughes, Aeron M.Jones, Anne Lloyd Jones, Eric Merfyn Jones, Keith Jones, Kevin Morris Jones, Sion Wyn Jones, Eryl Jones-Williams, Beth Lawton, Dewi Owen, Jason Parry, Nigel Pickavance, Rheinallt Puw, Peter Read, Elfed P. Roberts, Gareth A. Roberts, John Pughe Roberts, Angela Russell, Mike Stevens, Hefin Underwood, Elfed Williams, Gruffydd Williams and Owain Williams.

 

Abstentions (0)

 

The Chair noted that the motion had been carried.

 

RESOLVED

 

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

(a)     To set a budget of £295,232,820 for 2022/23, to be funded by £213,210,400 of Government Grant and £82,022,420 of Council Tax income, with an increase of 2.95%.

(b)     To establish a capital programme of £59,074,980 in 2022/23, to be funded from the sources noted in Appendix 4 of the report.

 

2.         To note that the Cabinet Member for Finance, in a decision notice dated 9 November 2021, approved the calculation of the following amounts for 2022/23 in accordance with Regulations made under Section 33 (5) of the Local Government Finance Act 1992 (“The Act”):

 

(a)                 53,715.10 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	571.25		Llanddeiniolen	1,840.10
Aberdyfi	1,095.65		Llandderfel	501.76
Abergwyngregyn	124.71		Llanegryn	164.55
Abermaw (Barmouth)	1,210.43		Llanelltyd	308.89
Arthog	654.41		Llanengan	2,289.52
Y Bala	781.39		Llanfair	335.58
Bangor	3,974.34		Llanfihangel y Pennant	232.58
Beddgelert	323.40		Llanfrothen	233.04
Betws Garmon	138.27		Llangelynnin	433.07
Bethesda	1,701.20		Llangywer	145.28
Bontnewydd	436.43		Llanllechid	348.06
Botwnnog	460.05		Llanllyfni	1,425.75
Brithdir a Llanfachreth	457.62		Llannor	906.33
Bryncrug	340.19		Llanrug	1,137.62
Buan	227.96		Llanuwchllyn	316.77
Caernarfon	3,640.35		Llanwnda	807.58
Clynnog Fawr	470.35		Llanycil	205.27
Corris	305.84		Llanystumdwy	885.48
Criccieth	972.85		Maentwrog	303.24
Dolbenmaen	624.58		Mawddwy	362.81
Dolgellau	1,275.63		Nefyn	1,535.07
Dyffryn Ardudwy	817.14		Pennal	231.82
Y Felinheli	1,165.68		Penrhyndeudraeth	792.98
Ffestiniog	1,786.14		Pentir	1,272.62
Y Ganllwyd	88.69		Pistyll	264.01
Harlech	821.55		Porthmadog	2,160.67
Llanaelhaearn	466.26		Pwllheli	1,779.02
Llanbedr	351.64		Talsarnau	343.74
Llanbedrog	780.02		Trawsfynydd	506.49
Llanberis	788.78		Tudweiliog	478.76
Llandwrog	1,051.46		Tywyn	1,691.37
Llandygai	1,001.64		Waunfawr	569.37

 

 

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 2022/23 in accordance with Sections 32 to 36 of the Act:-

                       

(a)	£443,927,600	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)	£146,536,120	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)	£297,391,480	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)	£212,714,737	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)	£1,576.40	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)	£2,654,323.06	Being the aggregate amount of all special items referred to in Section 34 (1) of the Act (community council precepts).
(e)	£1,526.99	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 2022/23 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
	211.20	246.40	281.60	316.80	387.20	457.60	528.00	633.60	739.20

 

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 2022/23 for each of the categories of dwellings shown in the Appendix.