To receive a verbal report on the above by the Head of Finance.
Minutes:
Welsh Government Settlement for Local
Government 2018/19
The Head of Finance reported that approximately a year ago the Welsh
Government mentioned that there was an 'additional' allocation of £58m, however,
it was not additional as the grants to local authorities would significantly
reduce.
This year it was noted that the Cabinet Secretary's statements mentioned
£104m which was not really 'additional', as the Local Government allocation was
down 0.5% in 'money' terms, without any addition towards inflation or
inevitable higher requirements. £62m of
the 'additional' allocation was for schools, but there was no 'money'. It was also said that some grants would
transfer to the settlement but again there was no additional 'money'.
It was proposed to hold Partnership Council meetings and the Local
Government Committee in Cardiff Bay last week but due to tragic circumstances
the Welsh Government closed for a week.
It was trusted that some clarity could be received about the grants as
soon as possible.
It was understood that the Welsh Government had additional money but this
had been prioritised for the health sector.
Gwynedd Council Settlement 2018/19
Welsh local authorities had received a cut of 0.5% on average, with Gwynedd
Council receiving a cut of 0.1% in a range between 0 and 1%. It was noted that
there was a difference between the 0.5% and the 0.1% that had already been
committed by the Council in order to address expenditure requirements on social
care in a rural area.
It was noted that this year's settlement was again difficult for Welsh
local authorities, which was a continuation of the impact of the Westminster
Government's 'austerity' policy that will have an impact on services and
residents across Wales.
It was stressed that there would be more bad news in the future with
inflation at around 2%, it was noted that the draft settlement of 0.1% (to be
confirmed in December) was a real cut of 2%, with nothing to meet the
additional pressures on social care services to a higher number of older
residents etc.
Potential Situation 2019/20
By 2019/20 it was noted that the Welsh Government had announced an
'indicative' settlement of -1.5%. At the
same time significant pay inflation was expected to address the 'living wage'
target for Council staff and supplier staff.
This could mean a real cut impact of approximately 5% by 2019/20.
(ch) Corporate Financial Requirements and the impact on
school budgets by 2018/19
By 2018/19, it was noted that there would be no additional savings target
for schools, like the rest of the Council's services, BUT:
·
Historical
savings plans had to be implemented, this included the remainder of the £4.3m,
where there was approximately £200,000 to come from additional organisation of
schools by 2018/19
·
As this was not
on track, no doubt the quantum would have to be reduced appropriately, this was
equivalent to around 0.3%.
Departmental Financial
Requirements and the impact on school budgets by 2018/19
It was reported that there was a significant overspend (£260,000) on
transport for pupils, mainly taxis for children with additional learning needs.
It was noted that the Head of Education had submitted a bid to the Council to
fund this inevitable pressure in the future, and retrospectively, however it
was unlikely that the Council would approve the application. As this had to be funded from somewhere, no doubt the quantum would have
to be reduced for this as well.
Therefore, this could mean that schools would face a reduction of half a
million in their allocations, equivalent to around an extra 0.7%.
However, in accordance with the usual procedure in Gwynedd Council,
inflation in school budgets would be funded, therefore there would be a net
growth in real terms and any cut would be transparent.
(dd) Corporate Financial Requirements and the impact on
school budgets by 2019/20 and beyond
It was reported that it would be a huge financial challenge for the Council
to find up to £30m of savings over three years.
Therefore, between now and October 2019 all Council services, including
Education in terms of schools, would have to explain the likely impact of
significant cuts in their budgets.
Having considered all the options, and having had confirmation of the
settlement in a year's time, the Council will consult with the public on the
options between October and November 2019.
These options meant including reducing the
schools quantum by 2019/20.
Requirements of
Departmental Finance and the impact on schools' budgets by 2019/20
It was reported that the Education Department had established an
administrative structure in the three areas at an additional cost of £275,000,
conditional to introducing savings for a similar sum within three years from
September 2016. It was noted that a
portion of these savings would be required by 2019.
Resolved: To
accept and note the above.