Agenda item

Cabinet considered a report which brought together the latest proposals for the Revenue Budget 2024/25 with indicative figures for the 2025/26 and 2026/27 financial years.  The report summarised the latest budgetary position, providing an update on the budget validation, spending pressures, the Welsh Government final settlement and the responses from the budget consultation.

In presenting the report, the Cabinet Member for Resources stated that adopting the proposals detailed in the report would allow the Cabinet to present a fair and balanced budget to County Council, which responded to the views fed back from the consultation process. However, he felt it was incumbent upon him to point out the inherent risks within the strategy in addition to the uncertainties over future pay awards and inflation which we must accept as a normal part of our budget setting. The report identified a number of risks as a consequence of the unresolved funding of both teachers’ and firefighters’ pensions, the delivery risk of our investment into Children’s Services and the delivery risk of the budget reductions across all areas of council services.

He confirmed that, if all the proposals outlined in the report are implemented, we can still provide a Budget Strategy which:-

·        responds to the consultation;

·        ensures, as far as possible, that service levels and standards are maintained;

·        recognises that the people of Carmarthenshire are finding it hard in the current  climate and so ensures that core services are protected; and

·        as far as possible, prepares the Authority for the uncertainties that may lieahead.

Reference was made to the seriousness of the situation that the Authority is facing and to the fact that we are trying to do our very best for the residents of Carmarthenshire during a very challenging period.  The Education Department is facing the biggest hit ever as it used to be protected in the past but we are unable to do that any longer and it is facing cuts like all other departments. Disappoint-ment was again expressed that teachers’ salaries have not been fully funded for the next two years which has had a major impact on the budget. 

The Chair thanked officers and the Cabinet Member for Resources for their work on the budget over the past few months.  He voiced his concern that it is a very challenging time with Local Authorities being put in the impossible position of trying to deliver frontline services whilst continuing to put up with cuts from central government.  He felt that there comes a point when some fundamental questions have to asked about the future of public services in this country. He added that there was a duty on us all over the next few months to make the case about the importance of local government and public services generally and the need for additional investment because what we have at the moment is just not sustainable. He pointed out that, in setting the budget, we have tried to protect front line services whilst trying to keep any Council Tax increase to a minimum and whilst 7.5% was higher than desired it was much better than some other Local Authorities who are facing double digit rises in council tax and some are facing bankruptcy.

UNANIMOUSLY RESOLVED TO RECOMMEND TO COUNCIL 

6.1      that the Budget Strategy for 2024/25, which includes the amendments at paragraph 4.1.5, be approved;

6.2      to approve the Band D Council Tax for 2024/25 of £1,602.80 (an           increase of            7.5%);

6.3      to approve the removal of specific savings proposals as identified in paragraph 3.2.7;

6.4      to approve the use of £3m from the RSG reserve, being £2m to            support temporary costs of commissioned residential children’s placements and £1m to support the delegated schools budget, as   outlined in paragraph 5.2.3;

6.5      to approve the Medium Term Financial Plan which will form the basis           of future years’ planning;

6.6      that authority be delegated to the Director of Corporate Services, in   consultation with the Chief Executive, Leader and Cabinet Member   for Resources, to make any amendments necessary as a       consequence of the WG final settlement due on 27th February 2024.