Agenda item

Councillor Bryan Davies, Leader of the Council presented the report to Council thanking Officers, Members and Chairs of the Scrutiny Committees for their input. He noted that the initial draft settlement from the Welsh Government was 3.6% and that the Cabinet along with Plaid Cymru and Independent members of the WLGA had been lobbying for 7%. The Welsh Government had settled for a funding floor of 3.8%, and as a result the situation had not changed significantly, resulting in a proposed decrease to the Council Tax increase from 9.9% to 9.3%. He noted that the core Council Tax increase equated to 4.3%, with an additional 0.6% resulting from the increase to the Mid and West Wales Fire Authority levy, 2.9% resulting from changes to the employers’ National Insurance contributions, and 1.5% resulting from a recommendation from Scrutiny to invest in waste collection and planning enforcement services.  He also noted an increase of 8.3% to the delegated schools’ budget, including grant funding. He acknowledged that a 9.3% increase was significant, emphasising that the Cabinet were eager not to cut services or staffing during 2025/26.

 

Councillor Gareth Davies, Cabinet Member for Finance and Procurement thanked Officers for preparing the budget and Members of the Scrutiny Committees for their consideration of the reports.  He noted that Cabinet had received a letter from the Independent Group, stating that they were unable to support the budget for 2024/25 as they felt that some of the savings were unachievable. He acknowledged that not all of the savings had been achieved, noting 3 items that were still in a red status, however no further reductions had been proposed for the 2025/26 budget.  He also noted the Independent Group’s recommendation to review all posts with a salary exceeding £45k with the exception of education and frontline services.  Councillor Gareth Davies noted that 72% of such posts are employed within Education (mainly within Schools), 6% are corporate manager roles, and 2% relate to the Leadership Group (with several posts being statutory posts).  Of the remaining 20%, 13% are posts within frontline services and 1% relate to work such as Growing Mid Wales. The remaining 6% (40 posts) are professional roles within support services such as legal, human resources, ICT and finance.  Having considered these in detail, the Cabinet concluded that any reduction to these services would impact directly upon the frontline services. He also noted the Independent Group’s recommendation in relation to agency staff, noting that this had started to reduce; however the majority of these roles relate to statutory services such as social care.

 

Councillor Gareth Davies provided an outline of the proposed budget as outlined in the report, which included the revenue budget, a breakdown of expenditure and what the council tax pays for, the council tax reduction scheme, the capital strategy and multi-year capital programme and the prudential indicators for capital and treasury management.

 

Members noted that they appreciated the work and the commitment of all employees stating that it was not the intention of the Independent Group to undermine the credibility of employees, but rather to look at rationalisation, job-sharing with other authorities and not re-appointing upon vacancies due to retirement. Members highlighted their concern in terms of the cost of living and a potential increase to the Council Tax.  Members also noted the importance of investing in the waste collection service and planning enforcement, noting that they anticipated that the enforcement element could be self-funding in a number of years, possibly a 3 to 4 year period.

 

Members also noted that they did not wish to see any further cuts to Council Services due to the impact that this has upon the most vulnerable residents. Members suggested that Overview and Scrutiny Committees could look at more Services during the year as part of their Forward Work Programme. Reference was also made to the Welsh Government funding formula which benefitted urban areas at the expense of rural areas, and a call for Welsh Government to review the Fire Service’s levy to move it to a Precept.

 

The Corporate Lead Officer for Finance and Procurement and the Section 151 Officer noted that the medium-term financial outlook remains poor and that both the revenue and capital budgets remain under considerable pressure and that the corporate risk register recognises this with the financial risk remaining at 25.  He noted that notwithstanding this, it is possible to produce a balanced budget, accepting that there are still some risks particularly in relation to pay awards and Employers National Insurance. He confirmed that in his opinion the Budget estimates have been prepared in a sufficiently robust manner and that the level of Reserves and General Balances were adequate.

 

Councillor Rhodri Evans proposed a recorded vote on items 2, 3 and 5.  This was seconded by Councillor Keith Evans and agreed following a 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 the Revenue Budget:

a)    The Revenue Budget Requirement for 25/26 of £209.164m, as set out in Appendix 1, which includes the Budget Reduction Proposals outlined in Appendix 2.

b)    The detailed Updated 24/25 Budgets and Forecast 25/26 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 2.

 

For: Shelley Childs, Bryan Davies, Catrin M S Davies, Clive Davies, Euros Davies, Gareth Davies, Gethin Davies, Ifan Davies, Marc Davies, Meirion Davies, Rhodri Davies, Amanda Edwards, Endaf Edwards, Elaine Evans, Elizabeth Evans, Eryl Evans, Gwyn Wigley Evans, Raymond Evans, Rhodri Evans, Wyn Evans, Keith Henson, Hugh Hughes, Chris James, Gwyn James, Gareth Lewis, Maldwyn Lewis, Gareth Lloyd, Sian Maehrlein, Ann Bowen Morgan, Caryl Roberts, John Roberts, Mark Strong, Wyn Thomas, Matthew Vaux, Alun Williams, Carl Worrall, Keith Evans (37)

 

Against: (0)

 

Abstain: (0)

 

3.       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 item 3.

 

For: Shelley Childs, Bryan Davies, Catrin M S Davies, Clive Davies, Euros Davies, Gareth Davies, Gethin Davies, Ifan Davies, Marc Davies, Meirion Davies, Rhodri Davies, Amanda Edwards, Endaf Edwards, Elaine Evans, Elizabeth Evans, Eryl Evans, Gwyn Wigley Evans, Raymond Evans, Rhodri Evans, Wyn Evans, Keith Henson, Hugh Hughes, Chris James, Gwyn James, Gareth Lewis, Maldwyn Lewis, Gareth Lloyd, Sian Maehrlein, Ann Bowen Morgan, Caryl Roberts, John Roberts, Mark Strong, Wyn Thomas, Matthew Vaux, Alun Williams, Carl Worrall, Keith Evans (37)

 

Against: (0)

 

Abstain: (0)

 

4.       To note that in relation to the proposed Council Tax increase for the Ceredigion County Council component:

a)    The core Council Tax increase for Council Services is 4.3%.

b)    The Mid & West Wales Fire Authority’s approved 25/26 Fire levy for Ceredigion County Council is £5.836m (being an increase of 7.3%).   This results in a £301k cost pressure on the Council’s 25/26 Budget and is equivalent to a 0.6% Council Tax increase.

c)     The impact of the Chancellor’s decisions on Employers National insurance is equivalent to a 2.9% Council Tax increase.

d)    Investment in the Waste Collection & Planning Enforcement Services is equivalent to a 1.5% Council Tax increase.

 

5.       To levy a Band D Council Tax of £1,886.57 for 25/26 for Ceredigion County Council purposes, representing an increase of £160.52 (£13.38 per month) or 9.3%.

 

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 5.

 

For: Shelley Childs, Bryan Davies, Catrin M S Davies, Clive Davies, Gareth Davies, Gethin Davies, Rhodri Davies, Amanda Edwards, Endaf Edwards, Elizabeth Evans, Eryl Evans, Keith Henson, Chris James, Maldwyn Lewis, Ann Bowen Morgan, Caryl Roberts, John Roberts, Mark Strong, Wyn Thomas, Matthew Vaux, Alun Williams, (21)

 

Against: Euros Davies, Ifan Davies, Marc Davies, Meirion Davies, Elaine Evans, Gwyn Wigley Evans, Raymond Evans, Rhodri Evans, Wyn Evans, Hugh Hughes, Gwyn James, Gareth Lewis, Gareth Lloyd, Sian Maehrlein, Carl Worrall, Keith Evans

 (16)

 

Abstain: (0)