Agenda item

To submit the report of the Cabinet Member for Finance.

 

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

 

(a)  Set a budget of £331,814,710 for 2024/25, to be funded by £233,316,780 of Government Grant and £98,497,930 Council Tax income (which is an increase of 9.54%).

(b)  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.

 

2.  To note that the Cabinet Member for Finance, in a decision notice dated 23 February 2024, approved the calculation of the following amounts for 2024/25 in accordance with regulations made under Section 33 (5) of the Local Government Finance Act 1992 (“The Act”):

 

(a)    56,109.27 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)   Part of the Council’s area – Community Tax Base -

 

Aberdaron	607.86		Llanddeiniolen	1,879.99
Aberdyfi	1,199.84		Llandderfel	513.67
Abergwyngregyn	127.25		Llanegryn	170.33
Barmouth	1,279.39		Llanelltyd	316.11
Arthog	686.30		Llanengan	2,611.78
Y Bala	805.81		Llanfair	365.02
Bangor	4,216.67		Llanfihangel-y-pennant	251.26
Beddgelert	342.39		Llanfrothen	237.05
Betws Garmon	146.14		Llangelynnin	469.59
Bethesda	1,729.69		Llangywer	154.76
Bontnewydd	470.78		Llanllechid	362.98
Botwnnog	470.80		Llanllyfni	1,485.90
Brithdir and Llanfachreth	470.72		Llannor	931.18
Bryncrug	348.73		Llanrug	1,148.76
Buan	239.47		Llanuwchllyn	335.02
Caernarfon	3,689.58		Llanwnda	848.52
Clynnog Fawr	489.48		Llanycil	211.80
Corris	323.38		Llanystumdwy	929.25
Cricieth	1,004.64		Maentwrog	328.15
Dolbenmaen	656.05		Mawddwy	377.08
Dolgellau	1,284.66		Nefyn	1,656.10
Dyffryn Ardudwy	861.12		Pennal	238.42
Y Felinheli	1,192.74		Penrhyndeudraeth	822.80
Ffestiniog	1,816.64		Pentir	1,300.06
Y Ganllwyd	90.89		Pistyll	306.53
Harlech	852.33		Porthmadog	2,268.75
Llanaelhaearn	482.64		Pwllheli	1,834.49
Llanbedr	373.86		Talsarnau	364.36
Llanbedrog	855.68		Trawsfynydd	517.21
Llanberis	797.48		Tudweiliog	512.69
Llandwrog	1,066.90		Tywyn	1,779.66
Llandygai	1,022.19		Waunfawr	577.90

 

 

being 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 2024/25 in accordance with Sections 32 to 36 of the Act:-

                       

(a)	£570,459,760	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)	£236,024,890	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)	£334,434,870	Being the sum that corresponds to the difference between the aggregate at 3 (a) above and the aggregate at 3 (b) above calculated by the Council, in accordance with Section 32(4) of the Act, as its budgetary requirement for the year (net budget).
(ch)	£232,821,120	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)	£1,811.00	Being the amount in 3(c) above, less the amount in 3(ch) above, all divided by the amount noted in 2(a) above, calculated by the Council in accordance with Section 33(1) of the Act, which is the basic amount of its Council Tax for the year (Cyngor Gwynedd tax and the average community council tax).
(dd)	£3,115,816.72	Being the aggregate amount of all special items referred to in Section 34(1) of the Act (community council precepts).
(e)	£1,755.47	Being the sum in 3(d) above, less the result of dividing the amount in 3(dd) above by the amount in 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 Cyngor Gwynedd Tax only).

 

(f) For parts of the Council’s area -

 

Aberdaron	1,782.61		Llanddeiniolen	1,771.96
Aberdyfi	1,792.32		Llandderfel	1,780.78
Abergwyngregyn	1,786.90		Llanegryn	1,797.45
Barmouth	1,807.17		Llanelltyd	1,787.10
Arthog	1,775.87		Llanengan	1,778.44
Y Bala	1,788.98		Llanfair	1,804.78
Bangor	1,889.13		Llanfihangel-y-pennant	1,803.23
Beddgelert	1,791.98		Llanfrothen	1,803.14
Betws Garmon	1,776.00		Llangelynnin	1,783.50
Bethesda	1,815.91		Llangywer	1,786.00
Bontnewydd	1,794.77		Llanllechid	1,801.53
Botwnnog	1,769.28		Llanllyfni	1,789.12
Brithdir and Llanfachreth	1,780.96		Llannor	1,777.49
Bryncrug	1,793.75		Llanrug	1,829.46
Buan	1,774.26		Llanuwchllyn	1,803.23
Caernarfon	1,863.35		Llanwnda	1,792.59
Clynnog Fawr	1,816.76		Llanycil	1,776.72
Corris	1,792.58		Llanystumdwy	1,776.99
Cricieth	1,805.24		Maentwrog	1,775.41
Dolbenmaen	1,782.91		Mawddwy	1,789.15
Dolgellau	1,815.41		Nefyn	1,809.81
Dyffryn Ardudwy	1,813.53		Pennal	1,830.97
Y Felinheli	1,797.89		Penrhyndeudraeth	1,794.77
Ffestiniog	1,882.08		Pentir	1,797.78
Y Ganllwyd	1,791.23		Pistyll	1,794.62
Harlech	1,837.60		Porthmadog	1,784.98
Llanaelhaearn	1,807.27		Pwllheli	1,812.71
Llanbedr	1,811.64		Talsarnau	1,815.85
Llanbedrog	1,784.69		Trawsfynydd	1,794.14
Llanberis	1,805.13		Tudweiliog	1,774.97
Llandwrog	1,829.14		Tywyn	1,812.73
Llandygai	1,793.04		Waunfawr	1,776.23

 

being the amounts given by adding the amounts of the special item or items relating to dwellings in those parts of the Council’s area mentioned above, to the amount 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 parts of the Council’s area, the figures noted in 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 2024/25 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
	233.10	271.95	310.80	349.65	427.35	505.05	582.75	699.30	815.85

 

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 to Appendix 11 to Item 9 on the Council agenda as the amounts of Council Tax for the year 2024/25 for each of the categories of dwellings shown in the Appendix.

 

The Chair noted, according to the Council Constitution, that the Head of Finance must accept any amendment to this item in writing in advance, and this amendment must lead to a balanced budget, if it was to be discussed. All Council members had been reminded of this last week, and the Head of Finance did not receive any notice of an amendment before the allocated closing date. Consequently, no notice of amendment to the budget could be considered.

 

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

 

·        A report and presentation recommending the budget to the Council for approval for 2024/25;

·        The draft decision on the Council Tax based on the Cabinet's recommendation to the Council (based on an increase of 9.54%), along with tables showing the Council Tax level and the increase per community.

The officers of the Finance Department were thanked for all their work in preparing the budget. He added that it did not give him any pleasure whatsoever to propose raising the Council Tax at a time when so many of the County's residents were battling against substantially increased costs-of-living.

 

He emphasised that if anyone was experiencing problems to pay their Council Tax or needed support with the costs-of-living, that it was important for them to contact the Council. It was noted that Councillors needed to convey this information to their electors. The relevant contact details which included the telephone number for Galw Gwynedd and the e-mail address as well as the e-mail address for the Council Tax service. 

 

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 2024/25 was sound, sufficient and deliverable.

 

Members were given an opportunity to make observations and ask questions. The following matters were raised by individual members:-

 

·        It was expressed that Cyngor Gwynedd's expenditure was being led by the needs of the people of Gwynedd and that the members were here to respond to those needs.  It was noted that the existing financial situation was already serious.  They asked how much of the overspend derived from the lack of intentional financing and the lack of acknowledgement of the basic need by the British Government.

·        In response, it was noted that the problem was substantial underfunding by the Labour Government in Cardiff. It was acknowledged that the situation was problematic because Councils received their money via Cardiff only, as well as through Council Tax payments. It was emphasised that the Council was in a situation of being underfunded.

·        One member noted that he would vote in favour of the budget, but that he would be doing so with a heavy heart. He expressed that we had been pushed and forced into this position over a period of 10 years under the Westminster Government's austerity policy. It was noted that Westminster were cutting national insurance payments but were underfunding public services, which forced Councils to increase Council Tax.

·        It was believed that it was important to express discontent at the situation that the Council had been forced into. It was reiterated that the well-being of future generations of children would ultimately suffer.

·        Reference was made to individual heartbreaking cases which members had come across, e.g. a homeless family living in a hotel without any cooking facilities and the resulting uncertainty and the impact this had on the child.  It was noted that this case was no exception and that over 300 people in Gwynedd were living in emergency accommodation, which included 55 children. Reference was made to the numbers who were homeless, living in poverty, facing an increase in their bills and relying on food bank parcels. It was expressed that nobody could have imagined such a situation 10 years ago.

·        It was reported that the Conservatives had generated very high inflation which led to expensive goods and services. It was believed that 15 years of austerity and hardship had been forced on us. This led to less money for Councils at a time when there is a greater demand on public services.

·        It was believed that the choice of either increasing Council Tax of cutting services, which would affect people, was a difficult and unfair one.

·        Clarity was sought on page 98 of the Agenda and the reference to £50,000 of money to improve the Dinas Dinlle car park. The Head of Finance Department explained that the report referred to bids and had come from capital funding which had been earmarked to improve and upgrade the car park.

·        A member remarked that this was the most difficult budget decision that he had been asked to make in his 29 years as a Councillor where a decision had to be made between cutting services for the most vulnerable in the County or increase Council Tax by almost 10%. He added that there was a risk of creating a new tier of poverty in Gwynedd. He felt that he was being forced to vote for the budget with a gun pointed at his head as he was not prepared to cut services for vulnerable people.  He reiterated that this was not a criticism of the Council's work.

·        The Westminster Government and those in power there were criticised.

·        Attention was drawn to the Prime Minister's personal wealth, which was allegedly approximately £700 million. 

·        It was questioned whether the Council had been too good at making efficiency savings and cuts and whether this had led to it receiving the worst percentage of the settlement in the whole of Wales. The member believed that the more realistic answer to that was because we were a rural County.

·        It was believed that there was a duty on the Council to try and retain young people in our communities and in the County and it was questioned whether more of an effort should be made to achieve this.

·        The Cabinet Member for Finance and the Head of Finance were thanked for their presentations.

 

A member took the opportunity to send an important message to the residents of the County and to reiterate what was said by the Cabinet Member for Finance. It was hoped that everyone was aware of their rights and claimed what they were owed. It was reiterated that eligibility for Council Tax benefit or credit made people eligible for further financial support. Those who found it difficult to cope financially were encouraged to contact the Council by calling the Galw Gwynedd number or visit the Council's website. Reference was made to community Hubs and Cost-of-living events being held across the County. It was reiterated that the public could also contact organisations such as Citizens Advice or contact their local Councillor for advice. The member noted that she was aware of people who found it difficult across the County, which included people working two jobs, but that advice was available.

 

It was questioned why Gwynedd had received the worst settlement in Wales, and whether there was an opportunity to ask for more money. Concern was expressed for those who worked and were paid minimum wage, but still fell into poverty as a result of all these costs. Pride was expressed that there was now a phone number for people to call for further advice; it was asked whether this number was open from 9:00 until 17:00 every day of the week. It was also asked whether money would be available to the Council as a result of the reduction in national insurance payments.

In response to the above, the Leader noted:

·        That the money is being distributed to Local Authorities on the grounds of a formula which is based on 160 factors. It was noted that parts of the formula were reviewed annually.

·        That Gwynedd had received the lowest settlement in Wales, mainly because of the drop in the County's population.

·        The formula may be changed and other ways to distribute the money found, but this could lead to other substantial changes of which we are unaware.

·        That it would take around 10 years to completely overhaul the system because there would be a need to design a new procedure and follow a statutory process. 

·        That the original settlement was 1.8%; however, a message had been sent to the Local Government Association, asking for a minimum of 2.0%. Some benefit had derived from this effort.

·        It was believed that some Councils in London were in a worse position.

·        It was reiterated that there was a need to protect services for the vulnerable as much as possible and that this was a responsibility on everyone.

The Head of Finance Department added:

·        That the Galw Gwynedd phone number that would provide information on the advice available would be open from 9:00 until 17:00 during weekdays, as well as the Council Tax phone number.

·        That the employee national insurance contributions were being reduced, and not the employer's contributions, therefore there would be no financial benefit to the Council.

 

A request was made for a registered vote.

 

In accordance with Procedural Rules, the following vote on the motion was recorded:-

 

In favour (46) Councillors:- Craig ab Iago, Menna Baines, Beca Brown, Stephen Churchman, Dafydd Owen Davies, Elwyn Edwards, Elfed Wyn ap Elwyn, Alan Jones Evans, Delyth Lloyd Griffiths, Jina Gwyrfai, Annwen Hughes, R. Medwyn Hughes, Iwan Huws, Elin Hywel, Nia Wyn Jeffreys, Berwyn Parry Jones, Dawn Lynne Jones, Dewi Jones, Elin Walker Jones, Gwilym Jones, Gareth Tudor Jones, Huw Wyn Jones, Linda Ann Jones, June Jones, Cai Larsen, Dafydd Meurig, Dilwyn Morgan, Linda Morgan, Edgar Wyn Owen, Llio Elenid Owen, John Pughe, Rheinallt Puw, Arwyn Herald Roberts, Beca Roberts, Elfed P Roberts, Meryl Roberts, Richard Glyn Roberts, Huw Llwyd Rowlands, Paul Rowlinson, Dyfrig Siencyn, Ioan Thomas, Menna Trenholme, Einir Wyn Williams, Elfed Williams, Sasha Williams and Sian Williams.

 

Against (13) - Councillors:-  Dylan Fernley, John Brynmor Hughes, Louise Hughes, Anne Lloyd Jones, Elwyn Jones, Eryl Jones-Williams, John Pughe Roberts, Angela Russell, Peter Thomas, Rob Triggs, Hefin Underwood, Gareth Williams and Gruffydd Williams.

 

Abstentions (3) – Councillors:-  Glyn Daniels, Dewi Owen and Nigel Pickavance.

 

The Chair noted that the motion had been carried.