Agenda item

To submit the report of the Cabinet Member for Finance.

 

 

1.  To approve the recommendations of the Cabinet:-

 

(a)  To establish a budget of £356,815,330 for 2025/26 to be funded by a £248,389,720 Government Grant and £104,425,610 of Council Tax income (which is an increase of 8.66%).

(b)  To establish a capital programme of £53,736,190 for 2025/26 to be funded from the sources noted in Appendix 4 of the report presented to the Council.

 

2.  It be noted that the Cabinet Member for Finance, in a decision notice dated 30 December 2024, approved the calculation of the following amounts for 2025/26 in accordance with Regulations made under Section 33 (5) of the Local Government Finance Act 1992 ("The Act"):-

 

(a)    56,842.05 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 - Community Tax Base -

 

Aberdaron	621.88		Llanddeiniolen	1,904.89
Aberdyfi	1,194.77		Llandderfel	528.88
Abergwyngregyn	121.90		Llanegryn	174.80
Abermaw (Barmouth)	1,317.52		Llanelltyd	310.17
Arthog	695.76		Llanengan	2,751.39
Bala	818.83		Llanfair	362.68
Bangor	4,244.36		Llanfihangel-y-pennant	251.76
Beddgelert	350.40		Llanfrothen	237.36
Betws Garmon	146.24		Llangelynnin	484.85
Bethesda	1,765.16		Llangywer	159.19
Bontnewydd	463.21		Llanllechid	371.67
Botwnnog	484.06		Llanllyfni	1,471.45
Brithdir & Llanfachreth	474.36		Llannor	951.51
Bryncrug	355.42		Llanrug	1,154.25
Buan	244.98		Llanuwchllyn	334.68
Caernarfon	3,721.81		Llanwnda	857.37
Clynnog Fawr	489.83		Llanycil	213.75
Corris	319.67		Llanystumdwy	937.44
Criccieth	1,016.89		Maentwrog	319.62
Dolbenmaen	652.91		Mawddwy	378.38
Dolgellau	1,315.09		Nefyn	1,696.20
Dyffryn Ardudwy	873.94		Pennal	238.53
Y Felinheli	1,202.04		Penrhyndeudraeth	838.59
Ffestiniog	1,842.24		Pentir	1,310.58
Y Ganllwyd	88.00		Pistyll	298.51
Harlech	870.85		Porthmadog	2,304.34
Trefor & Llanaelhaearn	475.75		Pwllheli	1,866.35
Llanbedr	359.87		Talsarnau	365.44
Llanbedrog	882.45		Trawsfynydd	528.93
Llanberis	814.21		Tudweiliog	520.39
Llandwrog	1,083.91		Tywyn	1,776.31
Llandygai	1,038.17		Waunfawr	595.31

 

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 2025/26 in accordance with Sections 32 to 36 of the Act:-

                       

(a)	£581,749,890	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)	£221,986,500	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)	£359,763,390	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).
(d)	£247,894,058	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.
(e)	£1,968.07	Being the amount at 3(c) above less the amount at 3(d) 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. (Cyngor Gwynedd tax and average community council tax).
(f)	£3,443,721.04	Being the aggregate amount of all special items referred to in Section 34(1) of the Act (community council precepts).
(g)	£1,907.49	Being the amount at 3(e) above less the result given by dividing the amount at 3(f) 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 Cyngor Gwynedd tax only).

 

(h)  Parts of the Council’s area - Community

 

 

being the amounts given by adding to the amount at 3(g) 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.

 

(i)    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(h) 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 2025/26 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
	248.10	289.45	330.80	372.15	454.85	537.55	620.25	744.30	868.35

 

5.  That, having calculated the aggregate in each case of the amounts at 3(i) 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 to Appendix 11 to Item 9 on the Council agenda as the amounts of Council Tax for the year 2025/26 for each of the categories of dwellings shown therein.   ⁠ ⁠

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

 

The Cabinet Member for Finance, Councillor Huw Wyn Jones presented:-

·         A report recommending a budget for the Council to approve for 2025/26;

·         The draft decision on the Council Tax based on the Cabinet's recommendation to the Council (based on an increase of 8.66%), along with tables showing the Council Tax level and the increase per community.

 

The Cabinet Member thanked the staff of the Finance Department for all their work in preparing the budget.

 

The Leader thanked the Cabinet Member for his presentation and for making the case for the budget clear.  She thanked the officers for guiding the Council through the process, and for their expertise and their skills.  She also thanked the members of the Governance and Audit Committee for their work scrutinising the budget, and thanked her fellow members for attending the budget workshops.  She further noted:-

·         ⁠That the budget reflected the Council's values as it prioritised the most vulnerable people in society by protecting care for children and adults social services, earmarking funding to try to reduce waiting lists for care, and protected schools from cuts next year.

·         The pressures on the services increased every year with the county's population ageing, more people requiring care, more vulnerable children requiring care and more people becoming homeless.

·         Despite the increase in the demand for services, the Council had to set a balanced budget.

·         As a result of pressing on the Senedd Cymru Finance Committee through the Welsh Local Government Association, a guaranteed minimum was secured for the settlement, otherwise the situation for Gwynedd would have been even more perilous.  However, this was not a long-term solution, and for the benefit of the people of Gwynedd, we had to ensure fair funding to local government.

 

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

 

A member enquired how confident the Head of Finance Department was that the budget was robust and that the Council would not have to make use of balances again this year.  In response, the Head of Finance Department referred to the contents of Appendix 10 to the report, namely the statement he was required to complete as a Statutory Finance Officer on the robustness of the estimates in accordance with Section 25 of the Local Government Act 2003.

 

Regarding the part of the question relating to the use of balances, the Head of Finance Department stated that he believed that the additional resources included as part of the bids (Appendix 2) would go a long way to addressing the financial deficit and the forecast overspend in 2024/25, and anticipated that such a situation would not happen again next year.  Nevertheless, he could not give any guarantee that there would be no overspend again in 2025/26.

 

The Head of Finance Department confirmed, having considered all the risks and mitigation steps, that he was of the opinion that the Council's Budget for 2025/26 was sound, adequate and achievable.

 

Members made the following observations:–

·         Local government was not funded properly and the Council Tax system would never work for our constituents.  A local income tax would be a fairer system, and the member believed that this should be explored further.

·         The financial deficit was increasing year on year, and the Council's expenditure would need to be increased by £25.8m in 2025/26 just to remain in the same position.

·         The two governments were increasingly moving towards regressive taxation, rather than progressive taxation.  In 1996, 81.8% of the Council's budget was paid by central government.  By 2009/10 the figure had decreased to 78.4%, and by now it had fallen almost a further 10% to 69.5%.

·         As a consequence of 15 years of austerity, public services were on their knees, and there were higher than ever levels of homeless people and children suffering from diseases, levels not seen since Victorian times.

·         The Westminster Government was managing to find money to pay for a war while cutting the welfare state.

·         There had been a promise of a "partnership in force" between the UK Government and the Welsh Government, led by the Labour Party, but that had been an empty promise.

·         The Council Tax was an unfair and regressive tax which ensured that the wealthiest people in society did not pay their share.  We possibly needed to shout louder about this in the next financial year, and try to persuade other councils to do the same.

·         The Council faced difficult decisions, but those decisions ensured that we were able to support the most vulnerable people in our society, and also the next generation. 

·         The amount of money that came to Gwynedd from the Welsh Government depended on the county's population figures, which were decreasing, and it was hoped that Ambition North Wales were doing everything within their ability to create jobs in Gwynedd, so that people did not have to leave the county in search of work.

 

It was noted that the proposed increase of 8.66% in the Council Tax carried through to the Council Tax Premium and imposed a disproportionate and unfair taxation burden on some people born and bred in Gwynedd, such as family farms, social enterprises and genuine local holiday accommodation businesses, etc.  The member enquired how difficult would it be to introduce additional exemptions in a clear policy, rather than dealing with situations on a case-by-case basis where there was no real clarity. In response, it was noted:-

·         ⁠That the Council's policy was to only allow statutory exemptions.

·         There was a part of the legislation that allowed the Council to consider reducing Council Tax bills, whether for a group of taxpayers or for individual taxpayers.

·         In cases of genuine hardship, they tended to consider discretion for not only the Premium, but for the whole Council Tax.

·         In considering the situation of groups of taxpayers, the Council had to ensure that the matter was addressed equally and in line with the legislation, and it could not charge a Premium on one cohort of people and not charge another cohort, unless there was a clear explanation and justification for doing so.  As the Cabinet Member had stated in response to a question on this exact issue earlier on in the meeting, there was a risk of creating a precedent, and that the precedent could come back to bite us unless we had an explicit policy.

·         Although it would be very difficult to produce a policy, it was not impossible, and we could look at this further and have a policy in place.

 

The Cabinet Member for Education noted that he was pleased that the schools budget was being protected in 2025/26, but the county's schools, like many other sectors in society, were under immense pressure, and headteachers were finding it difficult to set a balanced budget which subsequently led to staff in some schools being made redundant.

 

The Cabinet Member for Adults, Health and Well-being noted the following:-

·         That the difficult work that had taken place to weigh up the cuts against increasing the Council Tax had been a long and tough path.

·         The budget presented invested in the most vulnerable people.

·         82% of the Council's overspend came from the care field, but it was not truly overspend, but rather underfunding of all the care required, over a number of years.

·         With the demand for care increasing year on year, the staff were working very hard seven days a week, every day of the year.

·         Although the Council was now providing just over 9,000 of care hours weekly, this was not adequate, and there were still people on the waiting lists.

·         They could not give assurance that there would not be overspend in the care field again next year, as they could not predict what the demand for services would be, but with this budget the Council would be taking the reasonable step towards protecting the most vulnerable people in the county.

 

A registered vote was called for on the motion.

 

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

 

In favour	45	Councillors:- Craig ab Iago, Menna Baines, Beca Brown, Stephen Churchman, Glyn Daniels, Elwyn Edwards, Elfed Wyn ap Elwyn, Alan Jones Evans, Gwilym Evans, Delyth Lloyd Griffiths, Jina Gwyrfai, Medwyn Hughes, Iwan Huws, Nia Wyn Jeffreys, Berwyn Parry Jones, Dawn Lynne Jones, Dewi Jones, Gwilym Jones, Gareth Tudor Jones, Huw Wyn Jones, June Jones, Cai Larsen, Beth Lawton, Dilwyn Morgan, Linda Morgan, Edgar Wyn Owen, Gwynfor 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, Rhys Tudur, Einir Wyn Williams, Elfed Williams, Sasha Williams and Sian Williams.
Against	12	Councillors:- Dylan Fernley, Louise Hughes, Anne Lloyd Jones, Elwyn Jones, Dewi Owen, Gareth Coj Parry, John Pughe Roberts, Peter Thomas, Rob Triggs, Hefin Underwood, Gareth Williams and Gruffydd Williams.
Abstentions	2	Councillors Eryl Jones-Williams and Nigel Pickavance.

 

The Chair noted that the motion had carried.

 

RESOLVED

1.         To approve the recommendations of the Cabinet as noted in the report:-

(a)      To establish a budget of £356,815,330 for 2025/26 to be funded by a £248,389,720 Government Grant and £104,425,610 of Council Tax income (which is an increase of 8.66%).

(b)      To establish a capital programme of £53,736,190 for 2025/26 to be funded from the sources noted in Appendix 4 of the report presented to the Council.

2.         That it be noted that the Cabinet Member for Finance, in a decision notice dated 30 December 2024, approved the calculation of the following amounts for 2025/26 in accordance with Regulations made under Section 33 (5) of the Local Government Finance Act 1992 ("The Act"):-

 

(a)    56,842.05 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 – Community Tax Base -

 

Aberdaron	621.88		Llanddeiniolen	1,904.89
Aberdyfi	1,194.77		Llandderfel	528.88
Abergwyngregyn	121.90		Llanegryn	174.80
Abermaw (Barmouth)	1,317.52		Llanelltyd	310.17
Arthog	695.76		Llanengan	2,751.39
Y Bala	818.83		Llanfair	362.68
Bangor	4,244.36		Llanfihangel y Pennant	251.76
Beddgelert	350.40		Llanfrothen	237.36
Betws Garmon	146.24		Llangelynnin	484.85
Bethesda	1,765.16		Llangywer	159.19
Bontnewydd	463.21		Llanllechid	371.67
Botwnnog	484.06		Llanllyfni	1,471.45
Brithdir and Llanfachreth	474.36		Llannor	951.51
Bryncrug	355.42		Llanrug	1,154.25
Buan	244.98		Llanuwchllyn	334.68
Caernarfon	3,721.81		Llanwnda	857.37
Clynnog Fawr	489.83		Llanycil	213.75
Corris	319.67		Llanystumdwy	937.44
Criccieth	1,016.89		Maentwrog	319.62
Dolbenmaen	652.91		Mawddwy	378.38
Dolgellau	1,315.09		Nefyn	1,696.20
Dyffryn Ardudwy	873.94		Pennal	238.53
Y Felinheli	1,202.04		Penrhyndeudraeth	838.59
Ffestiniog	1,842.24		Pentir	1,310.58
Y Ganllwyd	88.00		Pistyll	298.51
Harlech	870.85		Porthmadog	2,304.34
Trefor a Llanaelhaearn	475.75		Pwllheli	1,866.35
Llanbedr	359.87		Talsarnau	365.44
Llanbedrog	882.45		Trawsfynydd	528.93
Llanberis	814.21		Tudweiliog	520.39
Llandwrog	1,083.91		Tywyn	1,776.31
Llandygai	1,038.17		Waunfawr	595.31

 

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 2025/26 in accordance with Sections 32 to 36 of the Act:-

                       

(a)	£581,749,890	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)	£221,986,500	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)	£359,763,390	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)	£247,894,058	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)	£1,968.07	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 (Cyngor Gwynedd tax and average community council tax).
(dd)	£3,443,721.04	Being the aggregate amount of all special items referred to in Section 34(1) of the Act (community council precepts).
(e)	£1,907.49	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 Cyngor Gwynedd tax only).

 

(f) For parts of the Council’s area -

 

 

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 obtained by multiplying the sums specified in 3(f) above by the number which, according to the proportions set out in Section 5 (1) of the Act, applies to dwellings listed in a particular valuation band divided by the number which according to those proportions applies 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 for the categories of dwelling houses listed in different valuation bands.

 

4.  That it be noted that for the year 2025/26 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 Act for each of the categories of dwelling houses shown below:

 

	Band A	Band B	Band C	Band D	Band E	Band F	Band G	Band H	Band  I
	248.10	289.45	330.80	372.15	454.85	537.55	620.25	744.30	868.35

 

5.  Having calculated the aggregate in each case of the amounts at 3(ff) and 4 above, that the Council, in accordance with Section 30(2) of the Act, hereby sets the amounts noted in Appendix 2 as the Council Tax for the year 2025/26 for each category of dwelling houses shown in the Appendix.