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 26^th February 2025.

 

Officers were thanked for their work and support in producing a balanced budget for 2025/2026.

 

It was explained that the budget setting process had been difficult for the last three years relying heavily on savings and income generation. It was further explained that the budget had been set against a backdrop of difficult circumstances including inflation and the cost-of-living crisis.

 

The importance of scrutiny towards the budget was highlighted, outlining the input from various sources including members, trade unions, external organisations and residents. As a result of the consultation members stated several items had been removed from the original proposals, which are summarised on page 2 of this report. 

 

It was explained that the balanced budget sets out to further protect jobs and services within the Council for the good of the people in Neath Port Talbot.

 

Increased funding can be seen in the report towards schools from delegated budgets. Concerns were raised for the Social Services Directorate particularly due to the closure of Tata Steel and the loss of jobs within communities.

 

It was noted that although the budget may not be the best due to a lack of funding, it is however a balanced budget, and one Officers have worked hard to develop and achieve.  

 

Details of the total budget requirements were presented to Council. The Cabinet Member explained £414m was required. Council was informed there had been various sources in obtaining funding, namely Council Tax Base 24/25, second and long-term properties, Welsh Government funding and discretionary rate relief, leaving a budget gap of approximately £15m. Savings and income generation amounts to £8.2m, whilst the use of reserves provides Home to School Transport with £500k. Concerns were raised in terms of the withdrawal of Home to School Transport in specific communities.

 

The Director of Finance drew Councils attention to typo errors contained within the report. Found at pages, 64 and 65 of the agenda pack, where it states ‘2023/24’ it should read ‘2024/25’.

 

Following the Cabinet Members statement members proceeded to raise several concerns regarding the revenue budget. Areas brought to attention were the rise in Council Tax, market trends relating to Gas and Electricity, reductions in bridge assessments, financial reserves which currently stand below 4%, a 5% cut to all Directorates and food poverty experienced by residents. Schools and their ongoing deficit were mentioned with members outlining the expected costs, standing at around £700m. Concerns were raised in terms of school staff cuts due to the amount of deficit, along with the decision not to build a new school and the effects this will have on school budgets. It was mentioned that there is no alternative plan to combat this issue. Members responded stating there had been an additional £1.5m given to secondary schools, £750k to Teaching Assistants and £350k to Welsh Medium Schools. It was noted that due to the increase in ALN pupils this contributes to high costs. The rise in teachers’ pay was also mentioned as a contributing factor to deficits.

 

Officers stated that a detailed report would be brought to the attention of members in scrutiny committees highlighting factors as to why schools are in the position they are. It was also mentioned that a comparison would be summarised on schools across Wales on their specific deficit and surplus.

 

Members went on to express their concerns to the Council Tax increase due to many years of underfunding received from the Welsh and UK Government. Despite this, members went on to thank officers in supporting residents experiencing Council tax debt.

 

Members stated that the funding received from Welsh Government was nowhere near enough to fund essential services, therefore balancing the budget for 2025/26 was with extreme pressures. It was noted that Directorates faced a difficult task to produce savings and devise income generation.

 

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. Bowen, H. Clarke, A. Dacey, Hayley Davies, Heath Davies, R. Davies, 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, D. Thomas, C. Williams, B. Woolford.

 

Against the recommendation:

 

Councillors: C. Clement-Williams, O. Davies, C. Galsworthy, S. Grimshaw, M. Harvey, L. Jones, R. Jones, D. Keough, E. Latham, A. Lockyer, R. Mizen, S. Paddison, S. Pursey, S. Rahaman, P. Rees, S. Renkes, S. Reynolds, P. Richards, S. Thomas, D. Whitelock, L. Williams, R. Wood.

 

Abstention:

Councillors M. Crowley, W. Carpenter.    

 

Resolved:

 

That having due regard to the integrated impact assessment information set out in appendix 8 Council approved the following recommendations.

 

Recommendation 1 - In relation to the proposed revenue budget for 2025/26 approve the revenue budget as set out in appendix 5 of the report.

 

Recommendation 2 - In relation to the setting of Council Tax levels for 2025/26 Council approve that Council Tax in 2025/26 will increase by 7%. The 2025/26 Band D equivalent for Neath Port Talbot County Borough Council will be £2,002.78