Agenda item

To adopt the Schemes in appendices 1 to 6, subject to the results of the consultation, as the ones which the Council will have to deliver to ensure a balanced budget in 2019/20, with a consultation on the schemes in appendices 3 to 6 to be held in January.

The item was submitted by Cllr Peredur Jenkins

RESOLVED

To adopt the Schemes in appendices 1 to 6, subject to the results of the consultation, as the ones which the Council would have to deliver to ensure a balanced budget in 2019/20, with a consultation on the schemes in appendices 3 to 6 to be held in January.

DISCUSSION

The report was submitted, noting that there was an annual requirement to balance the Council's budget. It was added that this year, the Council anticipated a significant financial deficit for 2019/20.

Since the beginning of the summer, it was expressed that the Cabinet Members, the Directors and the Heads of Departments had been considering what would need to be done in order to address the financial deficit. Every department noted how it would find 20% from its budget if there was a need to do so. It was expressed that this process had been difficult but thorough, and that it had forced every Department to dig deep for possible savings. In addition to this, it was noted that the Council had been in consultation with Gwynedd residents, to ask of the things the Council did which were most important to them.

The financial context was provided, noting that the Head of Finance Department was continuing to attempt to establish a balanced budget for 2019/20 and four workshops were held for elected members to provide an understanding of their situation now. It was explained that the Council had received another disappointing settlement from Welsh Government where the grant given to Local Government remained the same. It was added that despite this, the Council was facing enormous pressure in the fields of Education and Care and that there was a significant inflation to salaries and matters such as energy. Consequently, it was explained that this meant that the Council would be facing a funding deficit that was likely to be around £12.9m. The steps that could be taken in order to reduce the gap were explained, and it was noted that in doing so, the latest estimation brought the deficit down to approximately £6.8m.

The Chief Executive added that filling the remaining financial deficit was a mathematical process.  The only other thing to do was to find more savings or increase Council Tax. It was noted, as part of the process of looking at possibilities during the period since the end of the summer, that Departments had identified further efficiency savings and that these could be seen in appendices 1 and 2 of the report. It was expressed that the efficiency savings proposed here would be savings where there would be very little change to the service to Gwynedd residents, and that a percentage of them would be back office savings. Appendices 3 to 6 then outlined the savings that were likely to have a greater impact on Gwynedd residents, but not to the same degree as many other plans that were considered.

He added that these savings would come to £2.5 million which would bring the deficit down to approximately £4.3 million. He added that if a further £0.5 could be found, this would bring the deficit down to £3.8 million, which was equivalent to a Council Tax increase of 5.5%.

It was explained that a consultation on the plans in appendices 3 to 6 would be held in January. Following this, it was added that a workshop would be held for all members so that they could give their opinion about a specific Council Tax level, the responses received through the consultation, and consider the need to bring greater savings into the equation, the impact of which would be much worse. 

Observations arising from the discussion

-        It was noted that the First Minister, during his time as Finance Minister, created this budget. It was expressed that the Leader had stated his disappointment and anger about the budget to Welsh Government. It was added that Welsh Government had a choice as nearly an additional billion in funding was available, but that the Government had prioritised every other department, and he added that some departments had seen an increase of nearly 14%. 

-        It was expressed that the settlement had been described by the Chief Executive of the Welsh Local Government Association as 'brutal', but it was added that the settlement was seriously poor and diabolical. It was expressed that every local authority had noted that there would be substantial cuts to their core services. It was noted that Welsh Government would be responsible for this following a vote that would be held this week to determine its budget. It was also noted that it was the responsibility of all Assembly Member who had voted in favour of this settlement to ultimately face their constituents. 

-        It was expressed that the Council wanted to squeeze every last penny out of services through efficiency savings in order to minimise the impact on residents. It was noted that back office savings were the first steps, but that these had an impact on jobs.

-        It was noted that although the Council had safeguarded school budgets and added inflation for teachers' salaries etc., Welsh Government had cut its grants for schools in 'real' terms, by failing to add any inflation. It was added that the Council was attempting to safeguard education and care services, but if things continued in this way, then these departments would need to be revisited and this could undermine the safety and lives of children and young people.

-        It was noted that the Council needed to find a way of informing residents that these were Welsh Government cuts, and that Gwynedd Council was responding to the challenge it was facing.

-        A question was raised about the Barmouth Bridge scheme, and the Cabinet member had noted for the Highways and Municipal that discussions were under-way to see whether this saving could be realised, ensuring that the path would remain open.  It was noted that this scheme was expected to be completed in April 2020, and therefore there was time to continue with discussions.