To submit the report of the Head of Finance.
Minutes:
Submitted – the report of the Cabinet Member
for Resources on the budget, providing an opportunity
for the Audit Committee to scrutinise the financial propriety and associated risks of the information prior to
the report being submitted to the Cabinet on 14 February.
The Cabinet Member for Resources set out the background and context of
the report. He referred to the four budget seminars held during
January/February to obtain members' input, and noted his disappointment at the
number that didn’t attend. He noted that it was difficult to predict the future
but that the Council had made future projections and the financial arrangements
implemented by the Council had been approved by the Wales Audit Office.
The Head of Finance Department
elaborated on the content of the report and noted that the Council would
receive an increase of 1.1% to its grant, which compared with a Wales average
of 0.3%. It was noted that officers from Gwynedd had taken a leading role in
providing the evidence to justify changing the distribution formula to reflect
the true cost of care in rural areas. Attention was drawn to Appendix 1 of the
report submitted to the Cabinet, which detailed the unavoidable bids to respond
to the pressures on services.
It was noted, in general, that there
was support in the finance seminars for a 2.8% increase in Council Tax. It was
explained that a comprehensive review of the Council's assets would be
conducted under the guidance of the Chief Executive, and an Assets Strategy would
be drawn up and enforced from 2018/19 for a period of 10 years.
Members were given an opportunity
to ask questions and make observations.
During the discussion, the following main points were highlighted:-
·
What would
the people of Gwynedd gain from the apprenticeship levy?
·
There was a substantial
rise in the North Wales
Fire and Rescue Service Levy. What was the Council's input to the process?
·
In relation to further efficiency savings, there was concern that the Full Council did not partake in decisions
which impacted the people of Gwynedd.
·
Doubtful that
it would be possible to find further efficiency savings.
·
That the finance
seminars held were beneficial. The recommendation was balanced and thorough.
·
Should the Westminster
Government and Welsh Government be persuaded to adopt the English form of business taxes in Wales in order to allow
the Council to make use of business rates?
·
The Council
collected funds on behalf of the Fire Service and the Snowdonia National Park through the Council Tax arrangement. Would it be possible
to present a more detailed breakdown on the Council Tax form?
·
It would be better to include a more detailed breakdown on the Council Tax form rather than in Newyddion Gwynedd.
·
The level
of small business tax relief scheme
was lower in Wales than in England. What
was the impact?
A response was given to the questions and observations as follows:-
·
The apprenticeship
levy was almost the equivalent of a 1% increase to Council Tax. The levy was a plan by the Westminster Government to boost the number of apprentices, most of the funds generated in Wales would not be spent in Wales. It was noted that the Cabinet Member for Resources
had sent correspondence to the Cabinet Secretary in the Welsh Government about opportunities for the region and the possibility of using the funds for training
schemes rather than on employment costs. This would not take place this
year, but future opportunities would be sought.
·
It was the Council that financed the Fire Service levy, but it
was the Fire Service's independent
decision to set the levy.
The Council’s representatives
on the Fire Authority were entrusted.
·
Further efficiency
savings plans had been submitted to Cabinet for approval. Each
savings plan was likely to affect someone somewhere, but an attempt was made to mitigate that impact by
delivering services for the people of Gwynedd by alternative means. The other option was cuts which would mean
abolishing some services entirely. Members were reminded
of the Calling In Procedure where a decision made by
the Cabinet could be called
in for scrutiny.
·
Further savings
opportunities would be sought rather than imposing a further increase in Council Tax
or further cuts which would
have a direct impact on the people
of Gwynedd. It was a difficult
task to deliver on behalf of the people of Gwynedd given the financial situation, and sympathy was extended to members.
·
Under the current
business rates arrangements in England, the grant received from the Government was amended when regions
received the business tax. If the arrangement
were to be adopted in Wales, It would
likely lead to a cut in grant money and a higher financial
risk for the Council.
·
The Council
Tax bill was statutory with a separate leaflet listing expenditure. Newyddion Gwynedd would
be distributed in the near future and
it would be verified whether it would be possible
to mention the situation therein.
·
As a source of information, Newyddion Gwynedd had been
ranked higher than a number of other sources by the people of Gwynedd in a survey held in
2009.
·
Extending the tax
relief plan for small businesses would help businesses, and the Gwynedd economy, and the Council would support the Welsh Government should it choose to extend
it.
RESOLVED to note and
accept the report and the associated risks, and recommend that the Cabinet:
(i) recommend that the Council (at its meeting on 2 March 2017):
1. set
a budget of £231,299,720 for 2017/18 to be funded by £168,963,540 of Government
Grants and £62,336,180 of Council Tax income, which will have been increased by
2.8% (or an amended combination of figures after the Cabinet has considered the
options).
2. Establish a capital
programme of £12.015m in 2017/18 and £6.410m in 2018/19 to be funded from
sources noted in clause 9.3 of the report.
(ii) note
the Medium Term Financial Plan in Appendix 4, and adopt the strategy in part
15-17 of the Plan.
Supporting documents: