Agenda item

1)     To set a budget of £330,590,040 and any additional funding received in the final settlement for 2024/25, to be funded by £232,092,110, of Government Grant and any increase in the grant received in the final settlement, and £98,497,930 of Council Tax income (which is an increase of 9.54%).

2)     To establish a capital programme of £85,224,800 in 2024/25 to be funded from the sources set out in Appendix 4 of the report.

3)     That the final additional Government Grant received above £232,092,110 - estimated to be approximately £969,000 - be used to reduce the use of £2m shortfall that has not been met in our financial schemes in 2024/25 and must be bridged from funds for this year as referred to in paragraph 5.4.

The report was submitted by Cllr. Ioan Thomas

DECISION

1)    To set a budget of £330,590,040 and any additional funding received in the final settlement for 2024/25, to be funded by £232,092,110, of government grant and any increase in the grant received in the final settlement, and £98,497,930 of Council Tax income (which is an increase of 9.54%).

2)    To establish a capital programme of £85,224,800 in 2024/25 to be funded from the sources set out in Appendix 4 of the report.

3)    That the final additional Government Grant received above £232,092,110 - estimated to be approximately £969,000 - be used to reduce the use of £2m shortfall that has not been met in our financial schemes in 2024/25 and must be bridged from funds for this year as referred to in paragraph 5.4.

DISCUSSION

The report was submitted stating that the Minister for Finance and Local Government had pledged additional funding to Welsh authorities as a result of additional funding recently allocated to English councils. It was estimated that the Council would receive an additional figure in the region of £969,000. In addition, it was noted that the department had informed them at the end of the previous week of certain grants that would be transferred to the settlement, and which would also have an impact on the final figures. It explained that the figures would be finalized by the Full Council meeting on March 7.

It was noted that the resolution sought was to recommend to the Council at its meeting on 7 March 2024 that a budget of £331 million should be established together with any additional money received in the final settlement for 2024/25 to be funded through a Government Grant of £232 million adding any increase in grant received in the final settlement and £98 million of income from Council Tax (representing a 9.54% increase on individual dwelling tax).  Also, establish an £85 million capital programme in 2024/25 to be funded from the sources set out in Appendix 4 to the report.

It was added that the estimated final additional Government Grant would be around £969k higher than what was in the draft settlement and additional funding (in the final grant above the draft settlement) would be used to reduce the use of £2m of the Council's reserves. It was emphasised that the budget was being recommended at a time when Welsh local authorities were facing significant financial challenges. It was highlighted that the Council had received a grant increase for 2024/25 which was among the lowest in Wales. It was explained that this amount was not sufficient to meet inflation, let alone additional pressure on services.

A salary inflation provision of £15.1m was highlighted. It was expressed that this figure was in line with most other local authorities. It was noted that the Council had planned prudently in 2023/24 for a 6% increase, but the final agreement was higher, and therefore as a result salary inflation in the 2024/25 budget would include an element to correct this gap as well as taking into account notional inflation of 5% for the whole workforce. It was highlighted that the budget provided for other inflation of £6.8m, and it was explained that this was a net amount which included provision for a wide range of changes depending on the scale of inflation of particular areas, such as £4m in care.

It was noted that there was a requirement to recommend approval of £5.1m of bids for additional permanent resources brought in by the departments to meet inevitable pressures on their services. It was explained that the items had been thoroughly challenged before being recommended for Cabinet approval.

In summary, it was expressed that the Council's spending needs before taking out savings for 2024/25 were £340m, and that a grant from the Welsh Government was to be around £232m. This highlighted that a residual gap needed to be filled and the previous item highlighted the savings that would need to be made. It was noted that it would be necessary to recommend meeting the remaining gap through Council Tax, and to increase it by 9.54%.

The Head of Finance added that appendix 10 highlighted that risk assessments had been undertaken and that hard work had been done by the department to ensure that the estimates were robust. It was stressed that the year was going to be extremely challenging, and the biggest challenge would be to ensure that savings would be realised.

Observations arising from the discussion

·         It was stressed that no Councillor wanted to raise Council tax but there was no other option available. It was noted that a number of individuals were willing to judge but without understanding how much of the Council worked, and that the money received was not sufficient.

·         It was expressed that there were only two options for having a balanced budget namely to raise council tax or cut more services, it was reiterated that trying to get the balance here was very difficult.