Minutes:
Councillor Caryl
Roberts, Committee Chair, outlined the meeting procedure and welcomed the
Leader of the Council, Councillor Bryan Davies, Councillor Gareth Davies, Cabinet Member for
Finance and Procurement Services, Committee Members, the remaining Cabinet
Members, non-Committee Members and Officers to the meeting.
The Leader of the Council, Councillor Bryan
Davies, presented the report on the draft budget for 2023/2024 including an
updated multi-year capital programme, outlining that this is based on the WG
provisional settlement, and that the WG final settlement is due on the 28
February 2023.
The
Leader advised the Committee Members that the higher than expected Provisional
settlement increase from Welsh Government for 2023/2024 of 8.1% (on a cash
basis) is welcomed. This should ensure that for the 2023/2024 financial year,
services to residents in Ceredigion can be protected as much as possible,
whilst acknowledging this is still an extremely challenging Budget. Key points
from this report are as follows:
·
The cost
pressures being faced by the Council total an unprecedented £22m, equivalent to
a Ceredigion specific inflation factor of over 13%. This compares with general
inflation running at 10.5% (December 2022 CPI figure). A budget shortfall of
£12m therefore needs to be found from a combination of Budget Savings and
Council Tax increase considerations.
·
He said that the
areas where cost pressures are being seen are generally not unique to
Ceredigion. There are recurring themes similar to those referenced in the
national press, which are affecting a range of public and private sector
organisations, as well as individual household finances. They range from energy
and fuel costs, to higher than projected Staff Pay awards, to contracts with
inflation linked clauses.
·
There is also a
proposed increase from the Mid & West Wales Fire Authority on their levy,
which is at a level not seen before. A 13% proposed increase in their Budget is
leading in turn to a significant cost pressure, in relative terms, on the
Council’s own budget.
·
Demands on Social
Care related budgets continue to increase, plus there is over £1.7m of funding
within the Provisional Settlement (1.5% of the 8.1% increase) that needs to be
passported to Externally Commissioned services in Ceredigion to ensure
registered Social Care workers continue to be paid at least the Real Living
Wage (which has risen from £9.90 to £10.90 per hour – a 10.1% increase).
·
Despite operational
challenges at times in some Services, Ceredigion County Council continues to
deliver high quality services that has been recognised by external regulators.
The Council is assessed by Audit Wales as remaining financially stable, albeit
recognising that financial challenges do lie ahead creating ongoing financial
risks, which is not unique to Ceredigion.
·
The current
2022/2023 Band D Council Tax level in Ceredigion (for all components) is
£1,777.27 which is in line with on the average Band D Council Tax in Wales at
£1,777.18. Average Council Tax levels in Wales are also considerably lower than
the equivalent average for English Unitary Authorities of £2,034 for 2022/2023.
The County Council element of the current 2022/2023 Band D Council Tax is currently
£1,447.90.
·
The Leader stated
that he, and the Cabinet are, as are all Councillors, acutely aware of the
impact that the Cost of Living is having on household personal finances. It is
proposed that Council Tax increases for 2023/2024 are kept below the current
rate of inflation and limited to no more than an additional £10.02 per month
for the County Council element.
·
The Leader and
the Cabinet’s preferred Council Tax increase option is a 7.3% proposed Council
Tax increase, which includes a 1.3% element in relation to the proposed Fire
Authority levy increase and which equates to an additional £8.81 per month for
the County Council element.
The
Leader stressed that there are challenging and difficult times ahead - with an
indicative Welsh Government Settlement average increase for 2024/2025 of only
+3.1%. The extent of the challenge will be focussed on as part of presenting an
updated Medium Term Financial Strategy in due course. One of the initial
guiding principles from the new political administration was (as far as
possible) to avoid cuts in Service provision, to minimise Redundancies and to
not go down a salami slicing savings route and to continue to take a corporate
and transformational approach to medium term savings.
Given
the scale of the financial challenge there is a limit to how far all aspects of
this approach can be achieved in full and on Delegated School Budgets proactive
decisions will be needed by individual Schools as their level of School
Balances and available grant funding declines.
Councillor Gareth
Davies, Cabinet Member for
Finance and Procurement Services, referred to the key outcomes for Ceredigion from the
23/24 Provisional Settlement shown on page 3 of 42 of the report, stating that
the WG Aggregate External Finance (AEF) allocated to Ceredigion is £129.050m
for 2023/24 compared with £119.419m for 2022/23. This is a cash increase of
£9.6m (8.1%) with Ceredigion ranked 9th.
He also referred to the Fire Authority Levy stating that following dialogue with Mid & West Wales Fire Authority, the relevant sum for Ceredigion would be an increase of £519k under their 13% Budget Option, which equates to a 1.3% Council Tax increase on a Band D property. There is also an additional Fire related grant of £143k that is to be transferred into the WG Final Settlement and this sum is therefore built into the Budget workings and will need to be passported through to the Fire Levy budget heading to ensure this element remains cost neutral. It is disappointing that this change is being done late in the Budget process with no prior consultation.
Ceredigion’s Settlement outcome reflects a
range of factors, but the main driver is the overall level of additional
funding that Welsh Government have put into the Settlement. Other pertinent
factors to note relate to Population data changes which account for a £54k
increase and Pupil Numbers data changes which account for a £70k decrease.
Councillor Davies stated that the gain on
Population could have been higher (c£350k) as the 2021 Census recorded the
Ceredigion population as 71,468, whereas the population dataset used for the
2023/2024 Settlement was a combined average of the 2021 Census population data
and the 2018 based population projections for 2023 which is 71,188. In addition,
at least the previous 2 Settlements (2021/2022 & 2022/2023) have used
understated population data.
On pupil numbers, Nursery & Primary numbers
have declined by 2.7% to 4,951, whereas Secondary numbers (years 7-11) have
increased by 2.5% to 3,599. This reflects a national trend of increasing
Secondary pupil numbers and decreasing Nursery & Primary pupil numbers,
when comparing data used for 2022/2023 and 2023/2024 Settlements.
£70m across Wales was included in the
Settlement for the continuation of WG’s commitment to ensure registered Social
Care Workers in Wales are paid at least the level of the Real Living Wage which
is now rising to £10.90 per hour.
Duncan Hall,
Corporate Lead Officer, Finance and Procurement, then provided a brief update
on the current situation and in particular the Authority’s Cost pressures. Detailed iterative work has been carried out to
identify and assess the unavoidable cost pressures faced by all Services, plus
the aspects considered as corporate items. This work has identified c£22m of
cost pressures, which equates to 13.4% of the 2022/2023 Budget. This level of
cost pressures is extraordinary and exceeds the £13m seen in the 2022/2023
budget. Prior to COVID and the current high levels of inflation in the UK
economy, cost pressures were typically around £8m and c.6% of net budget. He proceeded to give an overview of the Cost
Pressures that are affecting all services as well as the items that are treated
as Corporate in nature and the saving in the Employers Pension Fund
Contribution rate which benefits all Services.
The relevant Cabinet Member presented the information relevant to their
Service Area.
Committee Members considered the Cost
Pressures for those service areas that are within the Committee’s remit; namely:
·
Porth
Cynnal;
·
Porth
Gofal;
·
Policy,
Performance and Public Protection (Public Protection element only); and;
·
Porth
Cymorth Cynnar.
And:
Committee Members considered the proposed
Fees and Charges under the
Committee’s remit in Enclosure C, Appendix 1,
pages 1 to 15 of 57, of the agenda papers.
Members were then given an opportunity to ask
questions which were answered in turn by the Leader, the Cabinet Member or the
relevant Officer. Main points arising as
follows:
·
In
response to a question regarding how much money to date (including that
proposed in the budget) has been allocated to pump prime the Pyrth Service, it
was confirmed that the information is available on page 2, Appendix 3 of
Enclosure A.
·
Responding
to a question regarding the number and associated cost of agency staff working
in Children and Adults Services, it was confirmed that this information is
commercially sensitive and could be added to the Committee’s Forward Work
Programme for further consideration, including the steps being taken to recruit
staff
·
In
response to a question regarding whether sufficient funding is allocated to the
Pyrth services, it was confirmed that current performance of the services
suggests that this is the case. It was acknowledged, however, that an increase
in the number of referrals, a growing ageing
population and increased poverty in the County, will place increasing demand on
these services, albeit assurance was given that the Pyrth’s budgets are closely
monitored throughout the year.
·
A
question was raised regarding out of county placements and the plans in place
to ensure that there are in-County placements for children. Councillor Alun
Williams outlined the benefits of ensuring that, where possible children can
stay in their own communities, with their friends etc. The financial savings
for this model was also outlined.
·
Members
were concerned to learn that 2 grant funding schemes will end, which will
impact on the Public Protection Service.
In addition concern was raised regarding the loss of funding for a part
time Natural Resources & Well-being Coordinator due the project shortly
coming to a planned closure.
·
It
was agreed that resources allocated to food standard inspections and farm
inspections, will be considered at a future meeting to ensure that relevant
statutory requirements are satisfactorily being met.
·
Reference
was made to the fees and charges linked to the Wellbeing Centres. It was noted
that the aim was to keep prices low to attract service users, but that there
was a need to reflect increased costs. The Committee discussed the delegation
currently in place to allow the service to run short term / time limited
promotional offers and voted to recommend to Cabinet that this is extended to
2023/24.
·
Members
of the committee also requested that a future workshop be held for all Members
to provide an update on the progress and latest plans under the Through Age
& Wellbeing Strategy.
Recommendations:
The Committee agreed that:
1.
It had considered the overall Budget position
as shown in the Budget report in Enclosure A.
2.
It
had considered the relevant elements of the Budget Cost pressures falling under this Scrutiny Committee.
3.
It
had considered the relevant elements of the Budget Savings proposals falling
under this
Scrutiny Committee.
4.
It
had considered the relevant elements of the Fees & Charges
proposals falling under this Scrutiny Committee, save that the Scrutiny Committee recommended that Cabinet agree to
extend the previous Cabinet decision of 22nd February 2022, for another year
for the 2023/2024 period, as follows:
·
To delegate authority to
the CLO Porth Cymorth Cynnar,
in consultation with the Cabinet Member with responsibility for the
Leisure and Wellbeing Centres, to vary the Fees & Charges for the Wellbeing
Centres for 2023/2024, to run short term/time limited promotional offers.
5. The majority of Committee Members voted in
favour of a 7.3% increase for Council Tax levels. The Committee is therefore recommending an
increase of 7.3% in Council Tax for 2023/2024, which is option 3b) of the
recommendations, as follows:
3b) A 7.3% Council Tax increase (including 1.3%
in relation to the proposed Fire Authority Levy increase) and a 23/24 Budget
requirement of £180.101m).
Supporting documents: