Notice
of Motion
Proposed
by: Councillor Simon Knoyle
Seconded
by: Councillor Sarah Thomas
It
is noted that:
Recent
years have been characterised by considerable volatility as a result of world
and domestic events.
Specifically:
• The pandemic period has left a
significant legacy with high numbers of people requiring support from social
services, homelessness services and more young people presenting with
additional learning needs and more young people needing additional help to
attend school and participate in their education;
• Energy prices, general inflation and
interest rates have sharply increased. Although inflation has now returned to
2%, many goods and services remain more costly and energy prices and interest
rates remain high;
• The cost of living crisis continues
with many of our residents and local businesses experiencing financial
hardship;
• Whilst there has been a small increase
in the number of people unemployed, the labour market remains very competitive
and this is reflected in higher prices for services. The council is also
continuing to experience difficulty filling some roles in our organisation. A
worrying large number of people of working age are economically inactive and
not looking for work;
• Capital projects have become more
challenging to deliver as a consequence of a number of factors identified
above; and
• Whilst the Council is engaged in a
range of significant economic development opportunities and is also a key
partner in responding to the challenging and complex changes at Tata Steel UK
Ltd, the cumulative impact of these developments is challenging to resource
whilst uncertainty remains.
The
revenue settlements from Welsh Government in the last two financial years –
2023/4 and 2004/5 fell substantially short of what the Council needed to
deliver its services and functions. Additional pressures of some £70 million
were identified for the two year period with Welsh Government providing some
£26.9 million funding. Budget cuts, additional income, including council tax
increases have been necessary to balance the budget – the associated change
management activity has increased workloads, placing further pressure across the
organisation
The
Cabinet Secretary for Finance, Constitution and Cabinet Office in her statement
of 11th June 2024 recognises the challenging context and makes clear that we
must prepare for difficult decisions and trade-offs in our planning. A Welsh Spending
Review is to be undertaken and this will drive the Welsh Government’s future
annual budgets. The statement makes clear that there will be an emphasis on key
priorities for Wales – reducing NHS waiting lists; support for children in
early years; educational excellence in our schools; better, greener jobs;
secure homes; and improved transport links across the country.
The
incoming Labour Government following the General Election held on 4th July 2024
is yet to signal whether it will adjust current spending plans. Welsh
Government advise, for 2025-26, we should base our
planning on NO uplift to the Revenue Support Grant.
The
scale of the challenge a cash flat Settlement presents for Neath Port Talbot
County Borough Council is serious. Work has already started to identify the
measures that will need to be considered to achieve a balanced budget for the
next financial year. The many years of austerity, coupled with the series of
economic shocks in recent years and the prospect of further significant reductions
to the Council’s funding base, will have very negative overall consequences for
the services and functions we operate, the number of people we will be able to
employ and rates of council tax, fees and charges.
Accordingly,
it is resolved that:
• Members note the serious implications
that will stem from no increases to the Revenue Support Grant in 2025-2026 on
services, jobs, fees and charges and council tax levels.
• The Leader of Neath Port Talbot County
Borough Council, on behalf of all elected members, write to UK and Welsh
Government highlighting the pressures which are identified in this motion and
expressing serious concern over the potential for no uplift to the revenue
support grant and to call on UK and Welsh Government to provide adequate
funding to enable the sustainability of councils.