Agenda item

Councillor Bryan Davies, Leader of the Council presented the report to Council noting that the information and proposals contained in the report had been considered by Cabinet and all Overview and Scrutiny Committees.

 

He emphasised that difficult decisions would have to be made and that there had been no change to the financial situation since receiving the draft budget in December of last year.  He noted that 70 saving areas had been identified which may affect some Members more than others, however the overall savings would benefit all residents by ensuring that the increase to Council Tax remain as low as possible. He thanked the Overview and Scrutiny Members for their input, noting that Cabinet agreed to the recommendation presented before them which related to maintaining the Absorbent Hygiene waste collection.

 

He noted that members of the public are expecting a gold standard service, without an increase in Council Tax; however, we must make the most from the Settlement received from Welsh Government. He confirmed that Rebecca Evans MS. Minister for Finance and Local Government had agreed to meet with him on a one-to-one basis, however the time proposed coincided with today’s Council meeting; this meeting will be rescheduled.  He also noted that during a recent WLGA meeting, the Leader of the Flintshire Council, raised the same concerns as those which affect Ceredigion in that rural areas have lost out to the more urban areas in terms of the Settlement. 

 

Councillor Bryan Davies noted that Cabinet had set a mandate to officers to ensure that the Council Tax is kept as its lowest possible level.  In order to achieve this, cuts have to be made.  Initial estimates suggested that Council Tax may have to increase by 20% however this has now been reduced to 10% for Council services, plus the Fire authority levy which equates to a further 1.1%.

 

Councillor Gareth Davies, Cabinet Member for Finance and Procurement noted that 4 Members’ budget workshops have been held in addition to all the work carried out by the Overview and Scrutiny Committees. He re-iterated the Leader’s comments, thanking the Chairs of the Overview and Scrutiny Committees for guiding the discussions relating to the budget.  He noted that the Welsh Government has openly stated that their 2024/25 Draft Budget is ‘the starkest and most painful since devolution’, and that the draft budget had now been finalised, giving a 2.9% increase to RSG.  This core funding increase places Ceredigion at 14^th out of 22 Local Authorities; however, when considering the funding per head of population, Ceredigion receives the lowest amount.

 

He noted that the estimated revenue cost pressures being faced by the Council for 2024/25 total £18m, equivalent to a Ceredigion specific inflation factor of 10% which leaves Ceredigion with a budget shortfall of £14m, to be found from a combination of budget reductions and Council Tax increases. He noted that 70 budget reduction proposals contained within the report are required to produce a balanced budget.

 

He also noted cost pressure from employee related costs totalling £6.1m, partly due to national pay awards (which are outside of the control of the Council), demands and pressures on Social Care related budgets at £8.6m over and above the employee pay awards relating to funding basic inflation uplifts for externally commissioned services such as domiciliary Care, Direct Payments and Older Person residential placements and ensuring that registered Social Care workers in Ceredigion continue to be pad at least the Real Living Wage which has risen from £10.90 to £12 per hour. 

 

He noted that it had not been possible to fully fund all cost pressures being experienced by schools; however, Cabinet had agreed to an average increase of 3.1% despite the Settlement from the Welsh Government being lower than this at 2.9%.  The increase from the Mid & West Wales Fire Authority also corresponds to a 12% increase in the Fire levy, which is equivalent to 1.1% as a Council Tax burden for all Ceredigion residents.

 

Councillor Gareth Davies explained that the Overview and Scrutiny committee had recommended that Cabinet did not place a cap of £2m on the income generated from the 25% of the Council Tax premium for second homes and long term empty properties; however Cabinet had decided to recommend that a cap is included in order to avoid any risk of excessive funds being inadvertently built up and in order to utilise the funding to offset pressures from all Council services, and avoid the need to increase the Council Tax even further.

 

He noted that despite operational challenges, Ceredigion County Council continues to deliver a high quality of services which meets external regulators’ satisfaction such as the Care Inspectorate for Wales, Estyn and Audit Wales. 

 

He noted that the current 2023/24 Band D Council Tax level in Ceredigion is £1,908 which is lower than the equivalent English Authorities average of £2,139.  He also referred to the 4 specific grants to be transferred into the Final Settlement totalling £2.228m and confirmed that the Final Settlement announced on Tuesday (27/03/24) was in line with the figures in the report.

 

Councillor Gareth Davies noted that in total, 70 budget reduction proposals were recommended by Cabinet during their meeting on 20 February 2024, totalling £5.819m.  He also noted that 75% of the Council’s budget would be spent on Schools and Lifelong Learning, Through Age Social care and Wellbeing and Highways and Environmental Services, and that after providing for other largely fixed costs, such as Members’ Allowances, the Fire Authority Levy, Capital Financing Costs and the Council Tax Reduction Scheme, this only leave 14% for all other Council Services.

 

Councillor Gareth Davies then gave an overview of the range of Services that Council Tax pays for with Ceredigion County Council providing over 100 services to its residents and employing 3,600 employees (2,614 FTEs).  Residents access these services at different points in their lives from registering a birth to being transported to and accessing Nursery, Primary and Secondary School education through to Post 16 education, be that 6^th form or vocational training, to accessing music and youth services, using a Sports centre, libraries or the Ceredigion Coastal path, registering to vote at an Election, planning and building regulation applications, eating in a safe and regulated food establishment, visiting the Ceredigion Museum or Theatre, having your waste collected and disposed or recycled, using household waste sites, driving on maintained roads and bridges, and gritting, using public bus services, having streetlights lit, and being able to call the Fire and Rescue Services in emergencies and in later years, benefitting from concessionary fares on public transport, care and support services such as equipment to enable independent living through to a placement in a Residential Care Come, and ultimately the involvement of the Coroner Service and registration of a death. Many of these services are not always appreciated, and that there is a considerable gap between what we may desire and what we are able to achieve and that in the future it may not be possible to maintain the current level of services.

 

He noted that there had been no changes to the proposed Capital Strategy or the Multi-Year Capital Programme, and also referred to the Prudential Indicators for Capital and Treasury Management included within the report.

 

Finally, he thanked his fellow Cabinet members for all their hard work in ensuring that the proposals reflected with the aims of a balanced budget, and thanked Duncan Hall and his team who have faced exceptional challenges during the year, especially with the delay to the Statement of Accounts for 2022/23 coinciding with demands of setting an exceptionally challenging budget.

 

The Corporate Lead Officer for Finance and Procurement confirmed his opinion on the Budget as Section 151 Officer, noting that if he was looking at the budget from a purely accountant’s lens, he would just be considering whether the figures add up, however the Section 151 role required a much wider view than this including having to consider the deliverability and achievability of the proposals.  He also noted that the Leadership Group have been reviewing the Budget on a weekly basis. 

 

He confirmed that the proposed reductions had been risk assessed using a BRAG status format and that just under half of the items were rated Blue or Green (being either already achieved or fully on track), whereas the higher risk assessed savings (red items - which relate to circa 4 or 5 items) amounted to c£1.2m. Other savings will be partly met during the year as they are implemented and achieved in fullness during the following years.  This will be monitored on a regular basis.   There is no such thing as a perfect budget unless all cost pressures are fully funded and there are no savings to be found.   Therefore, the Council has to operate on various tolerances and the red assessed items equated to 0.6% of the proposed £193.6m budget, which is deemed to be an acceptable level.  

 

He confirmed that in his opinion the Budget estimates were therefore sufficiently robust and that the level of reserves and balances were adequate, whilst accepting that reserves were declining but in a managed and controlled way (for example due to matched funding commitments on major capital schemes).

 

He concluded by highlighting that in terms of the medium-term outlook there are significant challenges, and many more difficult decisions lie ahead for the Council. 

 

Councillor Gareth Lloyd, Leader of the Independent Group noted that the Fire Authority Levy was substantially higher than initially expected, and that Ceredigion County Council has lost out based on estimated population figures both before and after the National Census in 2021, and that the increase of 12% includes an element of pension increases which will be partly refunded as a grant from the Welsh Government.

 

He noted that the Cabinet has a huge job ahead in bringing a balanced before us.  Last year, the Independent Group agreed to the budget as there was no alternative available; however, the pressure placed on Local Authorities by the Welsh Government has now made it nearly impossible to operate.  The Welsh Government has the power to increase taxes, however they choose not to do so, whilst funding a free bridge crossing and universal free prescription services and expecting us to raise taxes and to deal with the complaints received from the general public.

 

He noted that he was disappointed that the Cabinet had agreed to recommend a cap on the funding from the premium on second and empty homes, emphasising the importance of protecting the Community Housing Scheme.  He also asked what the implications on consulting with residents on the various reduction proposals would be if the financial details are approved today. 

 

Finally, he noted that the funding formula for the settlement is not fair, and that all councils should band together in objection to this. He also agreed to speak to the Fire Authority regarding the unfair funding system.  He noted that he would not be able to support the recommendations relating to the budget for the above-mentioned reasons.

 

Councillor Elizabeth Evans, Leader of the Liberal Democrats Group, noted that the residents of Ceredigion will focus on one fact above all others - the fact that the Council Tax is increasing and that services are diminishing.  She notes that being in opposition is difficult, and that as part of the opposition, it’s about holding the administration to account whilst finding ways to work together to achieve the best outcomes for our local communities and ensuring good governance.  She noted that she welcomed the information and communication received from Officers and the Leader of the Council as well as the readiness of Officers to be challenged, and that nobody should underestimate the desire of qualified people in their field to deliver services.

 

She noted that all Members have been through a series of budget workshops and meetings, and undertaken the process of scrutinising budget proposals, analysing the different possible scenarios whilst waiting for amendments to the settlement from the Welsh Government. It is apparent that budgets are at best aspirational, and at worst undeliverable.  The Settlement from the Welsh Government is overbearingly poor, and Westminster have simply devolved austerity to local governments since 2008, washing their hands from any responsibility.   We are now at the point where delivering the most basic service is becoming a daily challenge, and residents in rural Wales deserve a parity of service with the most urban towns and cities. There are residents today who have only known austerity, and to live in a time of prosperity is alien to them. Yet the crux of the issue is the projected in-year savings and proposed income generation, many of which are subject to consultation, and others will probably prove unachievable.  Much of the focus has been on reducing the initial council tax percentage, balanced against projected income and cuts to service, a balancing act that nobody is going to win.  The contingency and budget management reserve is empty, and if we were to access general balances, then we are immediately postponing issues for future Ceredigion taxpayers. 

 

She noted that if projected savings are treated corporately, then we are going into this budget blindfolded, and any shortfall will be subject to new in-year cuts which do not form part of this budget, and as such the Liberal Democrat Group is unable to support this budget.

 

Councillor Bryan Davies noted that the take-up for the Community Housing Scheme, launched in October had been relatively low, and that the scheme would need to be reviewed by an Overview and Scrutiny Committee over the coming months. He also asked that Members consider alternative proposals for savings if they are not happy with the current proposals. 

 

Eifion Evans, Chief Executive also confirmed that any decision not to progress with a budget saving would create further challenges during the financial year, requiring further democratic discussion as well as demonstrating financial agility.

 

Several Members noted that the options for budget savings were far-reaching and questioned whether they were achievable.   The Corporate Lead Officer: Finance & Procurement confirmed that he had formally given his professional opinion on the Budget in Recommendation 1 of the report, which is a legal requirement.   He confirmed that if Members don’t have faith and confidence in the figures presented then it reflected upon him professionally and ultimately would mean that Members don’t have faith in him as Section 151 officer. 

 

Councillor Hugh Hughes noted that he had absolute faith in the figures being presented, however he had to make a judgement call based upon his own experience and that he was not as convinced that this would be achievable despite the hard work by Officers and Members of the Cabinet.  Several other members including Cllr Rhodri Evans, Cllr Elizabeth Evans and Cllr Gareth Lloyd made similar comments.  Members applauded Duncan Hall for his work.

 

Members also referred to the future impact upon residents that are already struggling financially, and whether savings could be identified from working with other authorities.  They also asked whether the Council had considered job reductions.

 

Councillor Bryan Davies confirmed that there had been significant reductions to posts over the year, and that the current staff are already taking on additional responsibilities and that further reductions would not be sustainable.  He noted that there’s a conflict between not placing an additional burden on tax payers and not reducing the services provided. If Members are not willing to support the proposed cuts then they would have no option but to raise their hands and vote for a higher increase to the Council Tax.

 

 

The Chief Executive noted that Senior Management roles had been reduced from 29 to 15 over recent years, and that the Senior Management structure is similar to other comparative authorities such as Gwynedd County Council. 

 

Councillor Keith Henson noted that these decisions have been extremely difficult, and that rural areas are being targeted constantly.  Several authorities already have a limit on 3 black bags, and that Ceredigion County Council is within the top three authorities in Wales for recycling, and that there are more recycling centres per head of the population in Ceredigion than any other authority.  However, cuts have to be identified, and we will have to address issues such as 50% of the contents of the black bin bags being recyclable.

 

Councillor Gareth Lloyd proposed a recorded vote on all individual proposals with the exceptions of the proposals that were for noting. This was seconded by Councillor Gareth Davies and agreed by a majority vote. 

 

Following a vote, the following were RESOLVED:

 

1.     To note that in the opinion of the CLO: Finance & Procurement (Section 151 Officer):

•     the Budget estimates have been prepared in a sufficiently robust manner.

•     the proposed level of Earmarked Reserves and General Balances is adequate in respect of the forthcoming financial year.

 

2.   To approve the following in relation to Council Tax Premiums:

a)   That from 01/04/24, 25% of all monies raised from the Council Tax Premiums on Second Homes and Long-Term Empty Properties (net of Council Tax refunds / costs) should be ringfenced and used to support the Community Housing Scheme, subject at all times that the total level of funding held in the Community Housing Scheme shall not exceed £2.0m and that any funding beyond this level in any given year shall be used to support the general budget position.

 

A recorded vote was taken, as agreed and in accordance with Rule 14.5 of the Council Procedures Rules contained in the Council’s Constitution on item 2.a).

 

For: Shelley Childs, Bryan Davies, Catrin M S Davies, Clive Davies, Gareth Davies, Gethin Davies, Meirion Davies, Rhodri Davies, Amanda Edwards, Endaf Edwards, Elaine Evans, Elizabeth Evans, Eryl Evans, Raymond Evans, Keith Henson, Paul Hinge, Hugh Hughes, Chris James, Ceris Jones, Ann Bowen Morgan, Caryl Roberts, John Roberts, Mark Strong, Wyn Thomas, Matthew Vaux, Alun Williams, Carl Worrall, Maldwyn Lewis (28)

 

Against: Ifan Davies, Marc Davies, Gwyn Wigley Evans, Keith Evans, Rhodri Evans, Wyn Evans, Gwyn James, Gareth Lloyd (8)

 

Abstain: (0)

 

b)   That from 01/04/24, 75% of all monies raised from the Council Tax Premiums on Second Homes and Long-Term Empty Properties (net of Council Tax refunds / costs) shall be retained and used to support the general budget position, in order to reduce the Council Tax burden on Ceredigion residents.

 

A recorded vote was taken, as agreed and in accordance with Rule 14.5 of the Council Procedures Rules contained in the Council’s Constitution on item 2.b).

 

For: Shelley Childs, Bryan Davies, Catrin M S Davies, Clive Davies, Gareth Davies, Gethin Davies, Meirion Davies, Rhodri Davies, Amanda Edwards, Endaf Edwards, Elaine Evans, Elizabeth Evans, Eryl Evans, Raymond Evans, Keith Henson, Paul Hinge, Chris James, Ceris Jones, Ann Bowen Morgan, Caryl Roberts, John Roberts, Mark Strong, Wyn Thomas, Matthew Vaux, Alun Williams, Carl Worrall, Maldwyn Lewis (27)

 

Against: Ifan Davies, Marc Davies, Gwyn Wigley Evans, Keith Evans, Rhodri Evans, Wyn Evans, Hugh Hughes, Gwyn James, Gareth Lloyd (9)

 

Abstain: (0)

 

 

3.   To approve the following in relation to the Revenue Budget:

a)   The Revenue Budget Requirement for 24/25 of £193.572m, as set out in Appendix 1, which includes the Budget Reduction Proposals outlined in Appendix 2.

 

A recorded vote was taken, as agreed and in accordance with Rule 14.5 of the Council Procedures Rules contained in the Council’s Constitution on item 3.a).

 

For: Shelley Childs, Bryan Davies, Catrin M S Davies, Clive Davies, Gareth Davies, Gethin Davies, Rhodri Davies, Amanda Edwards, Endaf Edwards, Eryl Evans, Keith Henson, Chris James, Ceris Jones, Ann Bowen Morgan, Caryl Roberts, Mark Strong, Wyn Thomas, Matthew Vaux, Alun Williams, Maldwyn Lewis (20)

 

Against: Ifan Davies, Marc Davies, Meirion Davies, Elaine Evans, Elizabeth Evans, Gwyn Wigley Evans, Keith Evans, Raymond Evans, Rhodri Evans, Wyn Evans, Paul Hinge, Hugh Hughes, Gwyn James, Gareth Lloyd, John Roberts, Carl Worrall (16)

 

Abstain: (0)

 

b)   The detailed Updated 23/24 Budgets and Forecast 24/25 Budgets, as set out in Appendix 3.

 

A recorded vote was taken, as agreed and in accordance with Rule 14.5 of the Council Procedures Rules contained in the Council’s Constitution on item 3.b).

 

For: Shelley Childs, Bryan Davies, Catrin M S Davies, Clive Davies, Gareth Davies, Gethin Davies, Rhodri Davies, Amanda Edwards, Endaf Edwards, Eryl Evans, Keith Henson, Chris James, Ceris Jones, Ann Bowen Morgan, Caryl Roberts, Mark Strong, Wyn Thomas, Matthew Vaux, Alun Williams, Maldwyn Lewis (20)

 

Against: Ifan Davies, Marc Davies, Meirion Davies, Elaine Evans, Elizabeth Evans, Gwyn Wigley Evans, Keith Evans, Raymond Evans, Rhodri Evans, Wyn Evans, Paul Hinge, Hugh Hughes, Gwyn James, Gareth Lloyd, John Roberts, Carl Worrall (16)

 

Abstain: (0)

 

 

4.   To approve the following in relation to Capital and Prudential Indicators:

a)   The Capital Strategy, as set out in Appendix 4.

b)   The Multi-year Capital Programme, as set out in Appendix 5.

c)   The Prudential Indicators, as set out in the Appendix 6.

d)   To delegate authority to the CLO: Finance & Procurement to effect movement within the total of the Authorised limit of external borrowing, and the Operational boundary.

 

A recorded vote was taken, as agreed and in accordance with Rule 14.5 of the Council Procedures Rules contained in the Council’s Constitution on items 4 a), b), c) and d).

 

For: Shelley Childs, Bryan Davies, Catrin M S Davies, Clive Davies, Gareth Davies, Gethin Davies, Meirion Davies, Rhodri Davies, Amanda Edwards, Endaf Edwards, Elaine Evans, Elizabeth Evans, Eryl Evans, Raymond Evans, Keith Henson, Paul Hinge, Hugh Hughes, Chris James, Ceris Jones, Ann Bowen Morgan, Caryl Roberts, John Roberts, Mark Strong, Wyn Thomas, Matthew Vaux, Alun Williams, Carl Worrall, Maldwyn Lewis (28)

 

Against: Ifan Davies, Marc Davies, Gwyn Wigley Evans, Keith Evans, Rhodri Evans, Wyn Evans, Gwyn James, Gareth Lloyd (8)

 

Abstain: (0)

 

 

Following a vote it was RESOLVED:

 

5.   To note that in relation to the proposed Council Tax increase:

a)   Mid & West Wales Fire Authority’s approved 24/25 Fire levy for Ceredigion County Council is £5.440m, being an increase of £584k (12%).   After allowing for assumed Pension costs funding from WG, this equates to a 1.1% Council Tax increase.

b)   The proposed Council Tax increase for Council Services (excluding the Fire Levy) equates to 10.0%.

 

 

6.   To levy a Band D Council Tax of £1,726.05 for 24/25 for Ceredigion County Council purposes, representing an increase of £172.45 or 11.10%.

 

A recorded vote was taken, as agreed and in accordance with Rule 14.5 of the Council Procedures Rules contained in the Council’s Constitution on item 6.

 

For: Shelley Childs, Bryan Davies, Catrin M S Davies, Clive Davies, Gareth Davies, Gethin Davies, Rhodri Davies, Amanda Edwards, Endaf Edwards, Eryl Evans, Keith Henson, Chris James, Ceris Jones, Ann Bowen Morgan, Caryl Roberts, Mark Strong, Wyn Thomas, Matthew Vaux, Alun Williams, Maldwyn Lewis (20)

 

Against: Ifan Davies, Marc Davies, Meirion Davies, Elaine Evans, Elizabeth Evans, Gwyn Wigley Evans, Keith Evans, Raymond Evans, Rhodri Evans, Wyn Evans, Paul Hinge, Hugh Hughes, Gwyn James, Gareth Lloyd, John Roberts, Carl Worrall (16)

 

Abstain: (0)