To submit
the report of the Cabinet Member for Finance
(attached).
Minutes:
The Cabinet Member for Finance submitted:
·
A report recommending a
budget for the Council's approval for 2019/20;
·
The draft decision on the
Council Tax based on the Cabinet's recommendation to the Council (based on an increase
of 5.8%), along with tables showing the Council Tax level and the increase per
community.
Further to the
content of the report, the Cabinet Member for Finance noted that the Welsh
Government's announcement on funding the £1.6m increase in employment
contributions to the teachers' pension scheme was expected today. The Head of Finance Department explained that
it was anticipated that the Council would receive a grant sum close to fully
funding the requirement, as the English Government had pledged to schools
there. The exact sum for Wales had not
yet been confirmed, but according to advice given, it would be between 80% and
100% of the total.
During
the ensuing discussion, some members noted that they could not support the
recommendation to increase the tax by 5.8%, due to the impact of this on the
residents of a poor county such as Gwynedd.
Many other members stated that, although they were utterly dissatisfied
with the situation, they believed that the Council had no choice but to accept
the budget given the circumstances.
The following matters were raised by individual members:
·
Concern was expressed
regarding the impact of the tax increase on the people who were on low wages,
but were slightly above the threshold for claiming Council Tax Reduction, and
it was proposed that a group of members from every political party in the
Council should go down to Cardiff to support the Leader in his efforts to lobby
the Government for additional funding.
·
In response to an enquiry
regarding funding three presumptions in the report, the Cabinet Member for
Finance explained that:
Ø
That he was confident that
the deficit between the grant expected from the Government and the employer’s
contribution towards teachers’ pensions was attainable, and if not, that further
discussions would take place with the schools.
Ø
That the £2.7m additional
tax from the second homes and empty homes premium had been earmarked in a fund
towards the Housing Strategy, and that the budget was balanced without
diversifying the premium product.
Ø
In terms of funding any
inflation as a result of Brexit, that the Council was on firm ground as it was
building flexibility into its budget, and should the requirement go beyond
this, using some of the balances could be considered.
·
It was noted that placing
pressure on the county's residents, who were facing daily challenges was not
desirable, but that the Council was facing its own increasing challenges as
well, as a result of the brutal Welsh Government and Westminster Government
policies.
·
With the Governments letting
people down with insufficient grant to meet inflation, let alone the increase
in demand for local authority services, safeguarding those services, especially
Education and Social Care, was more important than ever.
·
The importance of ensuring
that support was available for individuals who applied for support was
emphasised. In response, the Cabinet Member for Finance gave his assurance that
Finance officers would be very willing to help anyone who was struggling to pay
the tax.
·
Disappointment was expressed
that so many of the services now relied upon the voluntary sector, and it was
believed that the only solution to this was to merge Councils. In response, the Cabinet Member for Finance
assured that significant disappointment had been expressed in discussions with
Government Ministers at the way the settlement had been announced. He also referred to work that was ongoing
across Wales to show the impact of cuts on the bottom line, and it was hoped
that a degree of influence could be placed on the new Minister for Finance.
·
Reference was made to the
increasing practice of converting summer homes into businesses to avoid paying
council tax, and steps already being taken to lobby the Government to end this
inequality were noted.
·
In response to an
observation that this Council had loaned £91m of taxpayers' money to other
councils, the Head of Finance Department explained that the sum quoted in the
press was the total of a number of smaller loans over three years. No more than £12m had been loaned to other
councils at any one time, and no more than £3m with one individual Council. He
explained that the Councils were paying higher rates of interest than the banks
and that the funds deposited there were also safer than in the banks, and
credit assessments had been carried out for them.
·
It was suggested that the
Council should use its reserve funds to give the young people of the county
loans to enable them to buy their own houses. In response, the Head of Finance
Department noted that the proposed Housing Strategy would include various
schemes to help young people.
·
It was suggested that the
free parking scheme over the Christmas period at Council car parks should be
adjusted slightly in order to prevent workers from parking there all day. In response, the Head of Finance Department
explained that the Cabinet had asked the Environment Department to look into
the free parking arrangements, and show some flexibility and imagination.
·
It was suggested that as the
Council had collected 97.3% of the Council Tax, and therefore, £4,189m had not
been collected, and that Gwynedd was the fifth lowest in Wales for collecting
the money. In response, the Head of
Finance Department explained that the 97.3% referred to the sum collected
within that financial year only. For any
year, around 99.5% was collected eventually, after collecting sensitively and
giving some of Gwynedd’s needy residents an extended period, but that it was
the percentage within the year that was compared in the national statistics.
·
It was noted that, although
some Councils had a higher tax increase than Gwynedd, their baseline on Band D
was lower than this Council, and Gwynedd was the sixth most expensive in Wales
for taxes on Band D. In response, the
Head of Finance Department noted that 60% of Gwynedd housing were in Band C and
lower. He explained that the tax level
in Gwynedd was higher due to the way the historic grant funding was allocated
at the time of the local government restructuring in 1996 and the tax increase
voted on since then was lower than the Wales average.
·
It was asked that the
Council representatives on the Fire Authority and the Police Authority to
challenge the increase in the precepts and levies of these authorities.
·
It was noted that the
average 6.5% increase in the Community Council's precepts was understandable,
as they were undertaking additional responsibilities such as youth clubs,
public toilets, grass cutting and picking up litter on roadsides.
·
It was noted that it was
important to emphasise that this budget was not the one the Council would have
wished to impose on the residents of Gwynedd, and that the Council recognised
the implications and the frustration it caused for the residents of
Gwynedd.
·
It was noted that the
Council was subject to decisions that were made far away from Gwynedd, and as
everyone grew tired of seeing rounds upon rounds of cuts and constraints, it
was important to remind people that the Council's hands were tied, and that
this financial austerity had been imposed from London to Cardiff, and from
Cardiff to us here in Gwynedd.
·
It was noted that, during
the past nine years, the value of the grants to the 22 Councils in Wales had
been reduced by over £1b, which was a reduction of over 20% in real terms. In
the midst of all this, it was appreciated that the Council continued to
safeguard important services and kept the tax increase as low as possible.
·
It was noted that the Welsh
Local Government Association needed to be challenged, as it had been
ineffective in its efforts to lobby the Government on this matter.
·
Reference was made to the
saving schemes that were part of the public consultation, but that the Cabinet
had resolved not to implement (Appendix 3 of the report). It was noted that
this was extremely positive news, and that the 5.8% Council Tax increase would
continue to fund some valuable services.
·
It was noted that the report
submitted to the Audit and Governance Committee referred to the 5.5% tax
increase, rather than 5.8%. The Cabinet
Member for Finance confirmed that this was the figure submitted to the
Committee, but that a Governance and Audit Committee had been held prior to the
Cabinet's recommendation of the exact tax.
He added that the change from 5.5% to 5.8% was in order to address the
matters that had been part of the public consultation, but which the Cabinet
had resolved not to implement.
·
It was noted that the
Council was in an impossible situation. Although people within the county
relied upon food banks, the Council was increasing the tax by approximately £70
per house. In response, the Cabinet Member for Finance noted that all members
had a duty to write to their Parliamentary and Assembly Members to pressure
them for a better settlement for the Council.
·
Disappointment was expressed
that so many questions had been asked at the Council meeting, despite the fact
that everyone had received an opportunity to raise these questions at the
series of member workshops on the budget.
·
It was asked whether the
Government intended to bleed the county councils dry in order to get rid of
them, and the Leader was encouraged to raise this question to the Welsh Local
Government Association, on behalf of the Councillors.
RESOLVED:
1. To approve the
recommendations of the Cabinet, namely:-
(a) A budget of £248,013,890
should be established for 2019/20, funded by a £176,551,790 Government Grant
and £71,462,100 Council Tax income, that has been increased by 5.8%.
(b) £18,316,130 should be added to the capital
programme for spending in 2019/20 in order to establish a capital programme
with a value of £34,991,250 by 2019/20 to be funded from the sources noted in
Appendix 4 of the report.
2. That
it be noted that the Cabinet Member for Finance, in a decision notice dated 19
November 2018, approved the calculation of the following amounts for 2019/20 in
accordance with Regulations made under Section 33 (5) of the Local Government
Finance Act 1992 (“The Act”):
(a) 51,926.38 being the amount calculated as Gwynedd's
Tax Base in accordance with the Local Authorities (Calculation of Council Tax Base)
(Wales) Regulations 1995 as amended, as its Council Tax base for the year.
(b) Part of the Council’s Area - Community Tax Base -
Aberdaron |
553.03 |
|
Llanddeiniolen |
1,836.69 |
Aberdyfi |
977.73 |
|
Llandderfel |
497.72 |
Abergwyngregyn |
118.92 |
|
Llanegryn |
159.72 |
Abermaw
(Barmouth) |
1,154.94 |
|
Llanelltyd |
288.42 |
Arthog |
617.35 |
|
Llanengan |
2,119.89 |
Bala |
774.71 |
|
Llanfair |
309.59 |
Bangor |
3,885.63 |
|
Llanfihangel-y-pennant |
216.38 |
Beddgelert |
316.54 |
|
Llanfrothen |
221.28 |
Betws Garmon |
138.73 |
|
Llangelynnin |
409.42 |
Bethesda |
1,674.96 |
|
Llangywer |
137.30 |
Bontnewydd |
432.27 |
|
Llanllechid |
340.89 |
Botwnnog |
447.42 |
|
Llanllyfni |
1,411.04 |
Brithdir and
Llanfachreth |
424.51 |
|
Llannor |
901.93 |
Bryncrug |
341.95 |
|
Llanrug |
1,135.80 |
Buan |
228.88 |
|
Llanuwchllyn |
312.51 |
Caernarfon |
3,543.60 |
|
Llanwnda |
783.86 |
Clynnog Fawr |
447.08 |
|
Llanycil |
200.54 |
Corris |
303.66 |
|
Llanystumdwy |
866.24 |
Cricieth |
944.01 |
|
Maentwrog |
280.90 |
Dolbenmaen |
606.10 |
|
Mawddwy |
350.59 |
Dolgellau |
1,228.41 |
|
Nefyn |
1,474.65 |
Dyffryn Ardudwy |
812.10 |
|
Pennal |
220.86 |
Y Felinheli |
1,157.21 |
|
Penrhyndeudraeth |
772.99 |
Ffestiniog |
1,745.06 |
|
Pentir |
1,188.82 |
Y Ganllwyd |
86.50 |
|
Pistyll |
252.01 |
Harlech |
791.40 |
|
Porthmadog |
2,014.59 |
Llanaelhaearn |
443.57 |
|
Pwllheli |
1,753.45 |
Llanbedr |
322.90 |
|
Talsarnau |
321.85 |
Llanbedrog |
713.19 |
|
Trawsfynydd |
507.98 |
Llanberis |
759.06 |
|
Tudweiliog |
461.40 |
Llandwrog |
1,029.14 |
|
Tywyn |
1,605.03 |
Llandygai |
990.62 |
|
Waunfawr |
560.86 |
namely
the amounts calculated as the Council Tax Base amounts for the year for
dwellings in those parts of its area to which one or more special items relate.
3. That
the following amounts now be calculated by the Council for the year 2019/20 in
accordance with Sections 32 to 36 of the Act:
(a)
£380,182,830 |
Being the aggregate of the amounts which the
Council estimates for the items set out in Section 32(2)(a) to (e) of the Act
(gross expenditure). |
(b)
£130,295,020 |
Being the aggregate of the amounts which the
Council estimates for the items set out in Section 32 (3)(a) to (c) of the
Act (income). |
(c)
£249,887,810 |
Being the sum that corresponds with the
difference between the above aggregate 3 (a) and the above aggregate 3 (b)
calculated by the Council, in accordance with Section 32(4) of the Act, as
its budgetary requirements for the year (net budget). |
(ch)
£176,081,773 |
Being the aggregate of the sums which the Council
estimates will be payable for the year into its fund in respect of
redistributed Non-domestic Rates and Revenue Support Grant, less the
estimated cost to the Council of discretionary Non-domestic rate relief
granted. |
(d)
£1,421.36 |
Being the amount in 3(c) above, less the sum in
3(ch) above, all divided by the sum noted in 2(a) above, that was calculated
by the Council in accordance with 33(1) of the Act, which is the basic amount
of Council Tax for the year (Gwynedd Council tax and the average community
council tax). |
(dd)
£2,343,940 |
Being the aggregate amount of all special items
referred to in Section 34 (1) of the Act (community council precepts). |
(e)
£1,376.22 |
Being the sum in 3 (d) above, less the result of
dividing the amount in 3(dd) above divided by the amount in 2(a) above, that
was calculated by the Council in in accordance with Section 34 (2) of the
Act, as the basic amount of its Council Tax for the year for dwellings in
those parts of its area to which no special item relates (Band D for Gwynedd
Council Tax only). |
(f)
For parts of the
Council’s area -
Aberdaron |
1,403.34 |
|
Llanddeiniolen |
1,393.53
|
Aberdyfi |
1,412.87 |
|
Llandderfel |
1,394.30 |
Abergwyngregyn |
1,401.45 |
|
Llanegryn |
1,407.52 |
Abermaw
(Barmouth) |
1,425.83 |
|
Llanelltyd |
1,402.22 |
Arthog |
1,395.66 |
|
Llanengan |
1,399.81 |
Bala |
1,407.20 |
|
Llanfair |
1,418.21 |
Bangor |
1,475.36 |
|
Llanfihangel-y-pennant |
1,427.42 |
Beddgelert |
1,406.23 |
|
Llanfrothen |
1,409.21 |
Betws Garmon |
1,394.96 |
|
Llangelynnin |
1,400.16 |
Bethesda |
1,431.42 |
|
Llangywer |
1,405.35 |
Bontnewydd |
1,419.02 |
|
Llanllechid |
1,399.69 |
Botwnnog |
1,388.51 |
|
Llanllyfni |
1,410.82 |
Brithdir and
Llanfachreth |
1,390.35 |
|
Llannor |
1,396.35 |
Bryncrug |
1,412.37 |
|
Llanrug |
1,420.24 |
Buan |
1,392.60 |
|
Llanuwchllyn |
1,408.22 |
Caernarfon |
1,432.23 |
|
Llanwnda |
1,411.94 |
Clynnog Fawr |
1,409.77 |
|
Llanycil |
1,396.17 |
Corris |
1,403.96 |
|
Llanystumdwy |
1,393.54 |
Cricieth |
1,420.71 |
|
Maentwrog |
1,397.76 |
Dolbenmaen |
1,405.92 |
|
Mawddwy |
1,401.38 |
Dolgellau |
1,425.06 |
|
Nefyn |
1,420.30 |
Dyffryn Ardudwy |
1,419.32 |
|
Pennal |
1,403.39 |
Y Felinheli |
1,410.79 |
|
Penrhyndeudraeth |
1,425.64 |
Ffestiniog |
1,499.42 |
|
Pentir |
1,418.28 |
Y Ganllwyd |
1,410.90 |
|
Pistyll |
1,415.90 |
Harlech |
1,464.67 |
|
Porthmadog |
1,406.38 |
Llanaelhaearn |
1,432.58 |
|
Pwllheli |
1,417.85 |
Llanbedr |
1,420.17 |
|
Talsarnau |
1,438.36 |
Llanbedrog |
1,402.86 |
|
Trawsfynydd |
1,411.65 |
Llanberis |
1,413.11 |
|
Tudweiliog |
1,391.39 |
Llandwrog |
1,429.66 |
|
Tywyn |
1,431.13 |
Llandygai |
1,397.83 |
|
Waunfawr |
1,397.62 |
being the amounts given by adding the
amounts of the item or special items relating to dwellings in those parts of
the Council’s area mentioned above, to the sum given in 3(e) above, divided in
each case by the amount of 2(b) above, calculated by the Council, in accordance
with Section 34(3) of the Act, as the basic amounts of its Council Tax for the
year for dwellings in those parts of its area to which one or more special
items relate.
(ff) In respect of part of the Council’s area, the
figures noted in Appendix 1, being the amounts given by multiplying the sums
specified in 3(f) above by the number which, in the proportion set out in
Section 5 (1) of the Act, is applicable to dwellings listed in a particular
valuation band divided by the number which in that proportion is applicable to
dwellings listed in valuation band D, calculated by the Council, in accordance
with Section 36 (1) of the Act, as the amounts to be taken into account for the
year in respect of categories of dwellings listed in different valuation bands.
4.
That it be noted
that for the year 2019/20 the North Wales Police and Crime Commissioner has
stated the following amounts in a precept issued to the Council, in accordance
with Section 40 of the Act, for each of the categories of dwellings shown
below:
|
Band
A |
Band B |
Band C |
Band D |
Band E |
Band F |
Band G |
Band H |
Band I |
|
185.40 |
216.30 |
247.20 |
278.10 |
339.90 |
401.70 |
463.50 |
556.20 |
648.90 |
5.
Having calculated
the aggregate in each case of the amounts at 3 (ff) and 4 above, the Council,
in accordance with Section 30 (2) of the Act, hereby sets the amounts noted in
Appendix 2 as the amounts of Council Tax for the year 2019/20 for each of the
categories of dwellings shown in the Appendix.
Supporting documents: