Issue - meetings

(NOTE:

1.     The Monitoring Officer advised Councillors that if they had declared an earlier interest by virtue of being LA School Governor’s they need not declare that interest again as the report related to the Council’s general Revenue Budget

2.     Councillors D. C Evans, E. Dole, T. Higgins, K. Madge, B.A.L Roberts, A.G. Morgan,  and J. Edmunds, repeated their earlier declarations

3.     Councillors L.R. Bowen, A. Vaughan Owen, G. Jones, P. Hughes and R. Evans declared an interest at the start of this item as they had family members employed by the Authority)

Council was informed that the Executive Board, at its meeting held on the 22^nd February 2020 (Minute 6 refers) had considered the Revenue Budget Strategy 2021/22 to 2023/24 and made a number of recommendations, as detailed within the report of the Director of Corporate Services, for Council’s consideration.

Council received a presentation by the Executive Board Member for Resources, on behalf of the Executive Board, in which he set out the background to the budget proposals being presented to the Council for consideration together with the responses received to the budget consultation.

The Executive Board Member for Resources informed Council that the report brought together the latest position on the Revenue Budget Strategy and detailed the Executive Board recommendations on concluding the Medium Term Financial Plan for 2021/22 to 2023/24. He added that the Welsh Government’s budget process had been much later than normal for 2021/22 with the final settlement figures having been published the previous day (2^nd March) and its final budget not being debating until the 9^th March.

The Executive Board Member advised that the final settlement confirmed the Council’s revenue and capital allocations had been unchanged in line with the provisional figures along with some changes to specific grants. The Welsh Government had also confirmed the sum of £206m for the Covid 19 Hardship Fund to support additional costs and loss of income relating to the pandemic for the first 6 months of the next financial year (2021/22).

The Executive Board Member advised that a review undertaken of the key components of the budget assumptions and allocations had provided some increased budget headroom, when compared with the original budget proposal, resulting in some of the proposals being revisited and further options considered.

The Executive Board Member for Resources reported that full details of the provisional settlement were detailed within the report (which had been confirmed unchanged in the final settlement). The headline was on all Wales basis with the average funding for Local Government having increased by 3.8%, with Carmarthenshire also receiving 3.8%. Whilst this had enabled the authority to allocate funding in the budget for a significant amount of inflationary and unavoidable pressures, it still required savings to be made despite the welcomed funding increase, as the plan included a significant value of savings deferred into future years, due to the impact of covid. Whilst those changes had been accommodated within next year’s budget, there would still be a  ...  view the full minutes text for item 5

The Executive Board considered a report which brought together the latest proposals for the Revenue Budget 2021/2022, provided indicative figures for the 2022/2023 and 2023/2024 financial years and summarised the latest budgetary position giving an update on the budget validation, spending pressures, the Welsh Government provisional settlement and responses received to the budget consultation.

The Executive Board Member for Resources outlined to the Board a number of factors influencing the budget, including the fact the final settlement from the Welsh Government would not be received until the 2^nd March 2021. Whilst having regard to the late announcement of the final settlement, he advised that key components of the budget assumptions and allocations had been reviewed and had provided some increased headroom to enable the authority to revisit some of the original budget proposals. 

The Executive Board Member for Resources advised that full details of the provisional settlement, included within the report, detailed that Local Government funding on an all Wales basis had increased by an average of 3.8% on the 2020/21 settlement, with Carmarthenshire’s allocation being 3.8% (£10.466m). Although that settlement had enabled the authority to allocate funding in its budget for a significant amount of inflationary and unavoidable pressures, it still required savings to be made and while the initial draft budget had included a significant value of savings to be deferred for future years, due to the impact of covid, it had accommodated the changes within the 2021/22 budget, but there would still be a need to continue to deliver further significant changes over future years 

The Executive Board Member referred to the final settlement from Welsh government, due to be announced on the 2^nd March 2021, and advised that the report sought authority for the Director of Corporate Services in liaison with the Leader, Chief Executive and the Executive Board Member for Resources to make any necessary adjustments to the Budget Strategy prior to County Council on the 3^rd March 2020. The Director of Corporate Services had however, made some adjustments to some of the other figures within the report, as part of the normal routine as clearer information became available, with current total validation adding some £10m to the budget. The most significant validation related to pay, which had allowed for 2.5% each year.  That, however, did not apply to teachers, which were covered by separate pay arrangements within the Welsh Government’s remit with the 2020 award representing a 3.1% increase, with the part year effect being a consistent assumption of 2.5% for any future awards, which was recognised as a key risk to the budget

The Executive Board Member reminded the Board that based on the provisional budget settlement, changes to some of the key assumptions around future pay awards and the impact of delays in the capital programme there was some scope to make changes to the strategy, and it had previously agreed to reduce the Council tax increase for 2021/22 to 4.48%, thereby providing a sum of £958k to respond  ...  view the full minutes text for item 6