Agenda item

REVENUE BUDGET STRATEGY CONSULTATION 2019/20 to 2021/22.

Minutes:

The Committee considered the Revenue Budget Strategy 2018/20 to 2021/22 which had been considered by the Executive Board as its meeting on the 19th November, 2018.  It was also noted that members of the Committee had recently attended consultation events on the budget which had provided them with an opportunity to ask questions and seek clarification on various aspects of the budget.

 

The report provided Members with the current view of the Revenue Budget for 2019/20 together with indicative figures for the 2021/22 financial years. The impact on departmental spending will be dependent upon the final settlement from Welsh Government and the resultant final Budget adopted by County Council.

 

The Committee considered the following detailed budget information appended to the Strategy relevant to its remit.

 

·         Appendix A – Corporate Budget Strategy 2019/20 to 2021/22

·         Appendix A(i) – Efficiency summary for the Social Care & Health Service

·         Appendix A(ii) – Growth Pressures summary for the Social Care & Health Service

·         Appendix B – Budget extracts for the Social Care & Health Service

·         Appendix C – Charging Digest for the Social Care & Health Service

 

The Head of Financial Services provided an overview of the report.   Key points covered included:

 

·         The provisional settlement was announced on Tuesday 9th October 2018. Indicative figures for individual Local Authorities were provided for one financial year only, 2019/20, with no further information about future years’ settlements.

·         The main points of the Provisional Settlement 2019/2020 on an all Wales basis are as follows:

o   Local government revenue funding for 2019-20 set at £4.214 billion, a reduction of 0.3% (£12.3 million) compared to 2018-19

o   Welsh Government stated £13.7 million has been included towards the cost of the September 2018 Teachers pay award, yet only £8.1 million has been provided.

o   There was reference to £7m of additional funding to meet Local Authorities costs arising from WG’s approach to free school meals. On this, it is clear that only £4m has been provided

·         After adjustments for Welsh Government identified transfers, the reduction in the provisional settlement is 0.5% (£1.343m). The Aggregate External Finance (AEF) therefore reduces to £258,831k in 2019/20.

·         Taking into account new responsibilities and transfers in, the reduction for Carmarthenshire is 0.7% (£1.873m).

·         There is a new social services grant of £30m across Wales but the details of this grant is not yet known.

·         There is significant pressure on the Council’s pay bill due to the teachers’ pay award 2018 and the implementation of the nationally agreed pay spine. The draft budget also considers the effect of the increase in Teachers Pensions Employer contributions c£4.5m full year effect.

·         The “Earmarked Reserves” held by the Authority is declining due to the reduction of capital programme support as agreed by Council.

·         The Authority is proposing a council tax increase of 4.89% for the next 3 years.

 

The Head of Financial Services provided an update and advised the Committee that since the despatch of the agenda the Cabinet Secretary for Finance had announced an additional funding package of £13m for the Revenue Support Grant across Wales and an additional £7.5m for Teachers’ Pay.  It was estimated that this would provide the Authority with an additional £1.3m. The final settlement figure was expected on Wednesday of this week.

 

The following questions/issues were raised on the report:

 

·         Reference was made to the efficiency proposals and concern was expressed that managerial efficiencies may affect the quality of service provided.  Officers were asked what services will be impacted?

 

The Head of Financial Services advised that customer services should not be impacted as it was mainly administrative functions that efficiencies would impact upon.  He added that he did not have all the information with him and would provide a full response via e-mail following the meeting.

 

·         Concerns were raised regarding the monies that Welsh Government announced the Authority would be receiving, but then the funding did not materialise. An example of this was the £20m that was allegedly earmarked specifically for social care.

 

The Head of Financial Services explained that there was a formal consultation process via WLGA and a collective response had been submitted to Welsh Government.  . The figure is to do with the standard spending assessment and the 0.5% reduction in spending.  If there is any reduction then it is contained in that 0.5% and is not over and above.  He added that there is a new social services specific grant.

 

·         Asked if there was any way the Committee could relay its concerns to the WG regarding the money which was promised but not delivered,

 

The Committee was advised that in terms of the consultation process, comments have been fed into that by the Authority, the Leader has written to them and the Director of Social Services has also responded to the consultation in this regard;

 

·         A question was asked regarding how the Authority is doing with regards to re-enablement.

 

It was stated that good progress is being made.  A review of intermediate care is currently being undertaken which includes re-enablement, following the conclusion of which a report could be presented to Committee for consideration.

 

·         An update was requested on the progress on Continuing Health Care.

 

The Head of Mental Health and Learning Disabilities stated that this area continues to be challenging but progress is being made.  A Summit with the NHS is being scheduled in the New Year.  The outcome of this Summit will be fed back to the Committee.

 

·         Clarification was asked regarding Appendix C of the report.  It states that Respite Care Charge to Clients for 2019/20 is for the full cost of placement. 

 

It was confirmed that the client contribution will not change as this is capped by Welsh Government currently at £80 per week with an expected increase to £90 per week next year.

 

·         Clarification was asked about the spend on IT and what it included.

 

The Committee was advised that this relates to department use and includes the purchase of new kit including phones for care workers.  There is also cost attributed to the introduction of CM2000 software which will provide savings efficiencies through improved rostering planning.

 

·         Clarification was sought on what “Other” referred to in the earmarked reserves table.

 

The Head of Financial Services advised that he did not have the information to hand but would be able to provide the details following the meeting.

 

UNANIMOUSLY RESOLVED that:

 

4.1

The 2019/20 – 2021/22 Revenue Budget Strategy Consultation be received;

4.2

The Charging Digest for the Social Care & Health Service, as detailed in Appendix C to the report, be endorsed.

 

Supporting documents:

 

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