Agenda item

Cllr Simon Knoyle, Cabinet Member for Finance, Performance and Social Justice introduced the report which had been commended to Council from Cabinet on 6^th March 2024.

 

The Chief Finance Officer, the Finance Team, the Chief Executive and the Corporate Directors were thanked for all the work that has been undertaken in developing the budget being considered at Council.

 

The proposed 7.9% increase to Council Tax was explained and the detail broken down against the percentage uplift received from the Welsh Government. 

 

It was stated that the Barnett formula is inadequate and does not allow Local Government to deliver its services, meaning that the Council has to make very difficult choices.

 

It was explained that this balanced budget sets out to protect jobs and services and the assumptions on pay awards, inflation and energy were explained.

 

One off contributions were explained, including £720,000 to schools to assist with their end of year energy costs and £780,000 to the Environment Directorate to fund in year energy costs. It was stated that £700,000 will be added to the reserve balance to fund lighting replacement programmes.

 

The Social Services and Community Safety budget will increase by 7.7% but it was reiterated that the services is still using £6 million of reserves to fund a number of invest to save proposals in order to provide a new direction for the service.

 

It was explained that it is estimated that the cost of providing Council services will increase by £128 million by 2028/29 which leaves a budget gap of £48 million after assumed Welsh Government funding, with the likelihood that the gap could increase further. The Medium Term Financial Plan is reviewed and updated regularly.

 

The level of specific reserves was explained, and Council was informed that the level of these are now well above pre pandemic levels. The forecast budget for specific reserves is £58 million which is being used to meet specific spend to save projects. This provided the Council with good resilience and potential useage over the upcoming years.

 

The level of general reserves was explained, as per the levels agreed in the Medium Term Financial Plan set and agreed in January 2022 and currently set to reduce to £15 million which is approximately 4% of the Council’s net revenue budget (a level recommended by the Chief Finance Officer.) Last year, the level of general reserves was £20 million and approximately 5.7% of the Council’s net revenue budget.  The correlation between the cost increases and the reserves decreases at the same cash level was explained. Members heard how the Chief Finance Officer intends to survey other Welsh Councils on their reserves position to ascertain the reasonableness of this Council’s reserve position. 

 

It was suggested that due to the ongoing severity of the Cost of Living crisis, the proposed Council Tax increase should be reduced and the use of reserves should be maximised.

Questions were raised on the robustness of the income generation targets incoudeded.

 

There was concern about the position of the schools budgets, with and their defecit position, ongoing pay awards and energy costs.

 

There followed a request for a recorded vote on the recommendation contained in the circulated report, which received the requisite support in accordance with the requirements of Section 14.5 of Part 4 of the Council’s Constitution- Rules of Procedure.

 

For the recommendation:

 

Councillors: A, Aubrey, T. Bowe, W. Carpenter, H.Clarke,A. Dacey, Hayley Davies.Heath Davies, R.Davies, N,Goldup John, W.Griffiths, J.Hale S.Harris, J. Henton, S.Hunt. J.Hurley. N.Jenkins. J.Jones S.Jones. C.Jordan S.Knoyle. C.Lewis, D.Lewis, A.Llewellyn, A, Lodwig, K.Morris, M. Peters,C.Phillips. R.Phillips. A Richards, P.Rogers. B.Woolford.

 

Against the recommendation:

 

Councillors: C.Clement Williams, O Davies, S. Freeguard, C.Galsworthy, M.Harvey, C.James L.Jones. R.Jones. EV.Latham.A.Lockyer R.Mizen S.Paddison S.Pursey S.Rahaman P.Rees.S.Renkes. S.Reynolds. G.Rice P. Richards S.Thomas. D.Whitelock,L Williams R.Wood.

 

Abstention: Cllr C Williams, Cllr M Crowley

         

 

RESOLVED:

 

Having given due regard to the Integrated Impact Assessment:

 

1.    That the revenue budget proposals and arrangements as per appendix 1 of the report for 2024/2025 be APPROVE.

 

2.    a) The following matters be delegated to the appropriate Corporate Director following consultation with the Council Leader, relevant Cabinet Member and Chair of the relevant Scrutiny Committee:-

 

-Fees and Charges (Executive Functions) applicable for the financial year 2024/2025

 

-Fees and Charges (Executive Functions) which are applicable in any subsequent financial year and which, in the opinion of the relevant Corporate Director, need to be set in advance of the financial year for operational reasons.

 

b)   The following matters be delegated to the appropriate Corporate Director following consultation with the Council Leader, Deputy Leader and relevant non-executive committee

 

 

-        Fees and Charges (Non Executive Functions) applicable in 2024/25

 

-        Fees and charges applicable in any subsequent financial year and   which, in the opinion of the Corporate Director, need to be set in advance of that financial year for operational reasons

 

 

3.    That authority be delegated to the Chief Finance Officer, in consultation with the Chief Executive, Leader and Cabinet Member for Finance Performance and Social Justice to make any amendment necessary through the use of general reserves as a consequence of any variation between the Welsh Government Final Settlement and the provisional settlement.

 

4.    That the Council Tax 2024/2025 will increase by 7.9% and the Band D equivalent for Neath Port Talbot County Borough Council will be ££1,871.76