Agenda item

To scrutinise the information before the Cabinet considers approving the Savings Plan in its meeting on February 11th 2025

DECISION:

 

·       Reasonable steps, under challenging circumstances, had been taken to draw up the Savings Plan

·       That the savings proposed were reasonable and achievable

·       That the risks and implications of the decision were clear

·       ⁠That the report was adequate to enable the Cabinet to make a decision on the Savings Plan

·       To submit observations from the discussion on the report to the Cabinet for their consideration when discussing the 2025/26 Savings Plan at its meeting on 11/02/25

·       ⁠Welcomed an invitation for the workshops to share information

 

Note:⁠

To consider reviewing the public consultation in the future to seek the view of residents about the council tax level. To encourage more effort to rationalise services

 

A report was submitted by the Leader of the Council, asking the Committee to consider the propriety of the process of identifying the savings, and submitting observations to the Cabinet for consideration, before coming to a decision at their meeting on 11-02-25. It was reported that it was not the Committee's role to express an opinion on what the size of the savings should be, or the features of individual proposals being recommended as savings, but rather to ensure that the Cabinet was clear of the facts that were presented to them, so that the decision taken was based on robust information.

 

When introducing the background to the work, it was noted that the Council had been delivering savings for many years now and the challenge of delivering those savings without harming services for the County's residents, was more difficult. It was explained that the Council was now aware of the Revenue Maintenance Grant (RMG) level from the Welsh Government for 2025/26 (a 3.2% increase), and that it would be substantially lower than what would be needed to maintain existing service levels. It was noted that detailed work had been done with all Council Departments to identify savings and cuts schemes.

 

The Chief Executive added that the Council also faced a situation where departments were overspending, mainly due to a continued increase in the demand for their services; it was now impossible for some services, such as homelessness, children care services, adults care services and school transport, to be able to operate within their current budget. This would lead to overspending this year of approximately £8m and a vast part of this deficit derived from the lack of budget to meet the higher demand for services and in most cases, deciding not to provide those services was not an option. As a result, reserves would need to be used to cope with the situation. 

 

Reference was made to the substantial increase in staffing costs as a result of a Westminster policy change to increase employer National Insurance contributions. As an employer of 6,000 staff, this would add up to £4.5M to staffing costs. Although the Council would meet the cost, the Welsh Government (as a result of the consequential provision in the Westminster Government's announcement to meet additional costs for National Insurance employer contributions in the public sector in England),  may possibly contribute around £3.5m.

 

As a result of providing a higher budget for the Departments that could not cope with their current budget and the low Revenue Maintenance Grant amount from the Government, the 2025/26 financial deficit would be around £8.77m.

 

In order to identify savings, 39 proposals were submitted by the Council's Departments (worth £1.89m). Cuts panels were held with every Department where the information submitted was challenged in the context of staff, function, expenditure and income. At these meetings, it was highlighted that very few could not be completely implemented as a whole. Every proposal had been assessed by the Chief Executive or by one of the Corporate Directors and had been placed in four categories to assist Members to prioritise savings schemes for 2025/26, with an awareness of what the level of risk would be from implementing any individual proposal. A Public Consultation was held, explaining the Council's financial position and the likelihood that there would be an onus to implement cuts as a part of the effort to address the financial deficit in 25/26. A total of 627 responses were received.

 

During the workshops and 1:1 sessions held with the Members, all proposals were submitted and Members were asked to note whether they would be willing to implement each of the 39 proposals, or, if they were unwilling to implement them, accept that the council tax needed to be increased by a sum equal to the financial value of the cut in question. It was reported that the rough consensus amongst the members in terms of what plans should be prioritised, was that there was not a desire to implement many cuts. It was noted that 21 of the 39 options were ones where over half the members did not support their implementation; there was consensus for only 9 options amongst 80% of members that they were willing to implement - with a value of £519k.

 

It was reiterated that a legal, equality and language impact assessment had been completed during the process, as well as responding to the requirements of The Well-being of Future Generations (Wales) Act (2015)

 

The members thanked the officer for the report

 

In response to a question regarding the vision for the future, it was noted that some of the plans were small-impact cuts, and that removing the resource entirely would have a greater impact on the County's residents. It was reiterated that things would not be so good for 2026/27 with political factors, such as elections, likely to have a further impact. Nevertheless, it was noted that the Council was preparing to make difficult decisions, and similarly it hoped for a better settlement from the Welsh Government.

 

In response to a question regarding discussing with every Department, but not with services collectively, and whether rationalising services was something to consider in the future, it was noted that rationalising services had been considered in the past as efficiency savings. However, this year, the discussions had been held per Department and the panels identified comparisons and considered merger opportunities.

 

In response to a question regarding risk considerations for schools as a result of abolishing GwE and that the cut would affect pupils in the County, it was noted that the risk had been considered. It was reiterated that the national procedure was changing and that the Service was being internalised in individual Councils. Gwynedd's decision was to implement a small cut in percentage terms, with the intention of reviewing the procedure as the Service stabilised itself.

 

During the ensuing discussion, the following observations were made by members:

·         ⁠Welcomed an invitation for the workshops to share information - this had been beneficial

·         The financial deficit had reduced, but the reserves were reducing.

·         Welcomed the fact that a public consultation had been held - why were the public not asked about their views on the Council Tax rate?

·         Had those proposals that were refused been considered in full? Were there further details? Had the Cabinet obtained clear guidance on those proposals?

·         Despite the saving of £519k, only £100k could be implemented in 2025/26.

·         Welcomed a medium-term financial plan - this gave departments time to adapt

 

In response to an observation regarding the public consultation, it was noted that the public consultation had taken many forms over the years, and certainly the procedure was to be reviewed again in the future. It was noted that it would be difficult for the public to make a decision on the Council Tax - if the tax reduced, then this would lead to further cuts.

 

In response to a question as to whether the cuts panel was confident that everything had been sieved through thoroughly, considering that a period of approximately 5-6 months had passed without any Member input, the Leader of the Council noted, whilst acknowledging that the process had been long, that she was happy with the information submitted and that the Members had been given an opportunity to provide input. The Chief Executive reiterated that the settlement confirmation slowed down the process, and despite the ability to theorise and have a range of options, additional matters arose from the settlement.

 

The Leader reiterated that it was disheartening to have to implement cuts annually, despite the aspiration to sustain quality services and offer a low Council Tax. The vision was to work cross-departmentally - one Council, one Team.

 

RESOLVED:

 

·         That reasonable steps, under challenging circumstances, had been taken to draw up the Savings Plan

·         That the savings proposed were reasonable and achievable

·         That the risks and implications of the decision were clear

·         ⁠That the report was adequate to enable the Cabinet to make a decision on the Savings Plan

·         To submit observations from the discussion on the report to the Cabinet for their consideration when discussing the 2025/26 Savings Plan at its meeting on 11/02/25

·         ⁠Welcomed an invitation for the workshops to share information

 

Note:

·         To consider reviewing the public consultation in the future to seek the views of residents about the council tax level. 

·         To encourage more effort to rationalise services