Agenda item

REVENUE BUDGET STRATEGY 2022/23 TO 2024/25

Minutes:

[NOTE:

1.    The Monitoring Officer advised Councillors that if they had declared an earlier interest, they need not declare that interest again at this point as the report related to the Council’s general Revenue Budget, and that they can remain in the meeting unless the discussion turns directly and specifically towards the matter of interest.

2.    Councillors C. Campbell, J.A. Davies, E. Dole, J.S. Edmunds, L.D. Evans, S.J.G. Gilasbey, P.M. Hughes, B.W. Jones, B.A.L. Roberts, T. Higgins, A. Vaughan Owen and R. James earlier declared an interest that they had family members employed by the Authority.

3.    Councillor K. Madge, repeated his earlier declaration.]

 

Council was informed that the Cabinet, at its meeting held on the 21st February, 2022 (Minute 5 refers) had considered the Revenue Budget Strategy 2022/23 to 2024/25 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 Cabinet Member for Resources, on behalf of the Cabinet, 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 full details of the provisional settlement were included within the report, but the headline was on all Wales basis, the funding for Local Government had increased by 9.4% on the 2021/22 settlement, with Carmarthenshire’s allocation being 9.2% (£311.597m).

 

It was explained that with the Welsh Governments budget process being much later than normal, with the final settlement figures only being published the previous day (1st March).  Members were able to view the latest summary of the budget which had been updated with the WG final settlement figures and had been published as an addition to the agenda as ‘updated Table 1.  It was reported that the final settlement figures provided an increase of £5,905 for Carmarthenshire which was as a result of a technical adjustment to the formula, it was proposed that the sum be added to the contingency in respect of COVID that had already been set aside. 

 

It was noted that the Director of Corporate Services had made some adjustments to some of the other figures within the report, as part of the normal routine as clearer information had become available, with current total validation adding some £16.2m to the budget.


It was advised that the budget maintained the pay assumption of 4% allowance for 2022/23 for both NJC as well as teaching staff, and that this remained the most significant validation included within the assumptions, however it was in line with the general expectations of Authorities and acknowledged that inflation was escalating well above 5%.

It was reported that the original budget proposals consulted upon throughout January 2022 assumed validation of confirmed pay and inflationary pressures to schools, and that this remained the case for the final proposals. Furthermore, there were no savings allocated to delegated school budgets for 2022/23, enabling headteachers and all schools staff to continue to place a focus into helping Carmarthenshire’s learners get back on track after what has been a disruptive 2 years.

It was advised that changes to some of the key assumptions such as energy price increases, and the release of last year’s economic development capital contribution provided scope to make some changes with the following highlighted:

 

·       an additional £50k to fund additional capacity in the public rights section

·       an additional £190k for school meal costs, in response to a recent notification of supplier price increases.

It was reported that the following adjustments thereto, had been recommended by Cabinet and took into account the outcome of the consultation process and responding to the feedback from both public and councillors:

·       removal of the proposed £15k reduction to 3rd sector grants,

·       removal of the £95k staffing reduction to ICT,

·       halt the plans introducing charges to additional car parks.

It was reported that with those changes sufficient funding would be available to cap the council tax increase at 2.5% for 2022/23.  It was highlighted that the public’s response had clearly indicated a majority favoured the lowest increase possible, and in recognising that the cost of living was rising rapidly, it was important to do as much as reasonably possible to support the residents of Carmarthenshire. Furthermore, it was highlighted that to set a Council Tax increase as low as 2.5%, was a great achievement considering that the many financial risks and pressures within the budget, including the recognition that inflation was running well in excess of 5%.


It was advised that should the budget proposals be adopted, it would allow the Council to set a fair and balanced budget which not only responded to the major concerns fed back from the consultation, but also recognised the significant inflationary pressures and the financial risks of any future response to Covid 19.

 

RESOLVED that the following recommendations of the Cabinet be adopted:

 

5.1.1

That the Budget Strategy including the updated Table 1 for 2022/23, be approved;

 

5.1.2

That the Band D Council Tax for 2022/23 be set at £1,396.04 (an increase of 2.50% for 2022/23);

 

5.1.3

The removal of specific savings proposals as identified in paragraph 3.2.5 of the report and detailed above;

 

5.1.4

That the budget amendments as summarised in paragraph 4.1.4 of the report taking into account the range of responses received during the consultation process and the additional pressures as identified in the report be approved;

 

5.1.5

That the provisional Medium Term Financial Plan be approved as a basis for future years financial planning;

 

5.1.6

That the Director of Corporate Services, in consultation with the Chief Executive, Leader and Cabinet Member for Resources, be delegated authority to make any amendment necessary as a consequence of the Welsh Government final settlement due on the 1st March 2022.

 

Supporting documents:

 

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