Agenda item

The Committee considered the Council’s Revenue Budget Strategy 2024/25 to 2026/27 which provided a current view of the revenue budget for 2024/25 together with indicative figures for the 2025/26 and 2026/27 financial years. The report was based on officers’ projections of spending requirements and took account of the provisional settlement issued by Welsh Government on 20th December 2023 - the latest date this had ever been provided.

It was emphasised that whilst significant work had already been undertaken in preparing the budget, the report represented an initial position statement which would be updated following the consultation process. Accordingly, Members were reminded that the report had been considered by the Cabinet at its meeting on 15th January 2024 and members of the Committee had attended recent consultation events which had provided an opportunity to analyse and seek clarification on various aspects of the budget.

The Committee was advised that the final settlement was expected to be published by Welsh Government on 27^th February 2024 alongside the Welsh Government budget, the day before full council meets to agree the final budget.

The report indicated that no funding had been allocated for either Teachers’ or Firefighters’ pension increases, as this mechanism had not yet been worked through between Westminster and Welsh Government. Whilst this was assumed to be a nil impact on the funding position, this was considered a significant risk until formally confirmed, with a value of c. £4m.

The Ministers letter stated that all available funding had been provided, and Local Authorities “must therefore accommodate” costs such as the September 2024 Teachers pay deal, although there was no clarity on what has been assumed.

Members were reminded that no additional funding had been provided to meet the budget shortfall going forward as a result of either the uplift in Teachers pay (set by Welsh Government), nor the 2023 NJC pay award (set by national pay bargaining). Welsh Government recognised that this was the most challenging settlement since devolution.

The Cabinet Member for Resources advised that Wales was to receive an extra £25m for public services off the back of the boost received by English councils aimed to tackle their cash crisis. It was hoped that some of this additional funding would be distributed to Local Authorities.

The Committee thereupon considered the following detailed budget information appended to the Strategy, relevant to its remit:-

·         Appendix A(i) – Efficiency summary for Health and Social Services

·         Appendix A(ii) – Growth Pressures summary for Health & Social Services

·         Appendix B – Budget monitoring report for Health and Social Services

·         Appendix C – Charging Digest for Health and Social Services

Several questions were raised to which officers responded. The main matters were as follows:

• In response to a query regarding the £2m drawn from reserves for Children Services, assurance was provided that it was correct to apply this funding and that it was anticipated that the introduction of in-house facilities would result in the reduction for the need to go market for 3^rd party placements. On this basis it was expected that there would be no recurrent need for this draw down facility.
• In reference to the Charging Digest officers confirmed that the average increase in charges had been calculated to be around 10% uplift that took into account the cost of providing home care had increased substantially.

UNANIMOUSLY RESOLVED that: