Agenda item

A Presentation by the Chief Executive

Councillor Peredur Jenkins, Cabinet Member for Finance stated that the Council still faced challenging times. He reminded the Council that the Gwynedd Challenge savings were nearing completion and that the scheme had been successful in finding the necessary savings. However, it had become apparent that Gwynedd needed a new savings scheme for the future

A presentation was given by the Chief Executive. He stated that the Council had been finding savings since 2006 in order to address the impact of inflation and pressures on services. With the impact of UK Government cuts continuing, as well as the uncertainty of Brexit, it had become increasingly clear that it was necessary to start planning savings to be implemented from 2019/20 onward.

The Finance Department had made projections for a number of financial scenarios, and the Cabinet would decide on differential savings targets for the departments in order to address the most likely situations. The Heads of Department would then present the possible savings to meet those targets to the Scrutiny Committees to challenge the plans on behalf of the people of Gwynedd. After the Members had had the opportunity to express their opinions, a public consultation would be held, before going ahead with deciding and implementing the final savings schemes.

After the presentation, members were given an opportunity to ask questions and make observations:

It was stated that the picture appeared to be very serious and that it was a collective responsibility to make the most of the situation and take part.

It was stated that it appeared that the Assembly had capped the increase in Council Tax at 5%.  An enquiry was made as to whether such a cap would continue, and what would an increase of 5% in Council Tax mean. If the Council were to adopt a Scandinavian model, how much would the tax need to be raised to improve services?

In response, the Head of Finance Department stated that he had not scrutinised Scandinavian models, and whilst a 5% increase would result in an increase of approximately £3.5 million to the Council's coffers, it would not meet inflation. The Chief Executive stated that a formal cap had never been imposed, and he suspected that there would be a local authority somewhere facing pressure to cross the 5% threshold before Gwynedd had to do so, as the situation had become especially precarious in several places.

It was noted that some services were already under enormous pressure and the question was asked as to where the line was, beyond which no further cuts could be made.

In response, the Chief Executive stated that it was not yet clear where that line was, but it that it was necessary to ensure that every waste and every other option had been explored before reaching a decision.

It was noted that discussions had taken place in order to collaborate with Town and Community councils in order to maintain services, but that the resources available to Community Councils were scarce and that taking the burden off the Council would result in further increase in their precepts.

In discussing collaboration, the Chief Executive stated that financial planning and prioritising was a matter for the Councils themselves, but that the Council would encourage collaboration and would consider every option to protect services.