Agenda item

The Executive Board considered a report which brought together the latest proposals for the Revenue Budget 2019/2020, provided indicative figures for the 2021/2022 and 2022/2023 financial years and summarised the latest budgetary position giving an update on the budget validation, spending pressures, the Welsh Government final settlement and the responses from the budget consultation.

The Executive Board Member for Resources outlined to the Board a number of factors influencing the budget, including the fact that the final settlement from the Welsh Government would not be received until the 25^th February 2020.  The updated information in respect of grants and assumptions had provided additional funding compared to the provisional budget that was agreed on the 6^th January 2020.

The Executive Board Member for Resources advised that full details of the provisional settlement was included within the report; the Local Government funding on an all Wales basis had increased by 4.3% with Carmarthenshire receiving 4.4%.  This reflected the recognition of the unprecedented level of financial pressures facing Local Authorities.  Despite the increased funding, savings were still required.

With the final settlement from Welsh government due on the 25^th February 2020, 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 Executive Board was advised that as and when information had been made available the report had been adjusted accordingly. Excluding teachers pensions cost the total validation added approximately £11.8m onto the budget. The report highlighted the high level of uncertainty around pay, however the budget had allowed for 2.75% increase each year. This pay offer did not apply to teachers who were covered by a separate National pay arrangement. The September 2019 award was set at 2.75% and this level was assumed for future years, however this was recognised as a key budget risk.

The Executive Board Member for Resources advised the Executive Board that a further £311K had been added to the schools budget, taking the overall increase in schools delegated budgets to £10.1m demonstrating significant support to schools and providing the same spending power as the current year.

Reference was made to the compressed budget timetable and that despite this the consultation process had been a success with over 2,000 responses received. The consultation had allowed for debate on the budget and provided significant feedback. Taking into account the outcome of the consultation and the budget adjustment the following proposals had been removed:

• The closure of Whitland Household Waste Recycling Centre.
• Closure of public toilets.
• Reduction of the Youth Support Services budget.
• Increase to cemetery charges.

Additionally, the proposed increased charges in respect of leisure services would now be met through increased usage, negating the need for increased charges.

The Executive Board Member for Resources advised that the proposed efficiency on the ALN budget be deferred to year 3 along with the proposed administration fee for self-funded residential placements.  He also proposed that due to service pressures the following should be applied:

• £128K additional Social Care workforce grant be applied to Social Services.
• £140K provided towards highways budgets to improve roads and capacity.
• £140k delegated to the Director of Education to prioritise according to departmental requirements.

It was proposed to the Executive Board that a Council Tax increase of 4.89% be implemented to enable delivery of the Strategy.

UNANIMOUSLY RESOLVED TO RECOMMEND TO COUNCIL:-