Agenda item

To consider the report of the Chief Officer Resources.

Consideration was given to the report of the Chief Officer Resources.

The Chief Officer Resources spoke briefly to the report which provided an update on the Medium Term Financial Strategy (MTFS) and the latest assessment of the Council’s financial position over the next 5 years.

The MTFS brought together all known factors affecting the Council’s financial position and formed the basis for decision making and included a forward look over the next five years to assess the spending requirements the Council was likely to face to deliver the priorities set out in the Corporate Plan and highlighted the level of cuts (reducing or stopping services) that would need to be made to ensure the Council could set a balanced budget each year.

The proposed MTFS was an iterative process and approach, one that would develop and be refined as the funding position from Welsh Government became clearer and strategic business reviews were further developed and implemented. 

It was noted that based upon the assumptions in the MTFS and the cost pressures identified in Appendix 2 of the report, a budget gap of £21m over the next 5 years was forecast and based on the current estimated achievement from the Strategic Business Reviews compared to the budget gap identified in the MTFS, there was a residual funding gap of £4m in 2022/23 and this ranged between £2.3m and £2.7m in subsequent years.

The Council’s current MTFS contained a number of assumptions which impact on the level of its income and expenditure. Changes in these assumptions could have a fundamental effect on the budget gap over the next 5 years. The impact of a 1% change on the main assumptions had been calculated and were detailed in paragraph 5.2.2 of the report.

The Chief Officer concluded by stating that the MTFS was used by the Council for planning purposes to provide an indication of the financial assessments for the next 5 years and formed part of the Council’s financial management framework.  This would be followed by the development and agreement of the annual budget which would commence following confirmation of the provisional Local Government Settlement which was expected from Welsh Government settlement on 22^nd December, 2021.

A Member referred to the spending requirements over the next 5 years and asked whether financial provisions had been made within the MTFS regarding CCTV and for the health, safety and equality works that had been identified at Cwmcelyn Nature Reserve.  These were both areas that would require financial investment in the next 5 years.

The Chief Officer Resources advised that the draft budget had included provision for CCTV based on the current funding provision which had been increased incrementally by a 2% inflationary uplift.  It was noted that a report would be submitted via the democratic process in the next few months regarding CCTV provision and if there were further requirements that needed to be considered, this would be built into the cost pressures and budget once the announcement from Welsh Government had been received.  With regard to Cwmcelyn Nature Reserve the officer was unaware of any specific allocation that had been set aside for these works.

The Member said she had been informed that the works relating to the Cwmcelyn Nature Reserve had been considered by CLT and a sum of £70-80,000 had been quoted as being required to repair the bridge.  However, if the health, safety and equality issues needed to be addressed in terms of the pathways, this would significantly increase the monies required to bring the Nature Reserve up to standard.

The Chief Officer Resources advised that this would be iterative process and if new or additional cost pressures were identified these would be considered as part of the budget setting process going forward.

In reply to a question, the Chief Officer said she was not expecting Council to agree any council tax increase at this meeting, this would be for a future meeting to determine but advised for planning purposes only, the MTFS had assumed an annual 4% increase in the level of council tax.

The Leader of the Labour Group said whilst this was an important report it contained assumptive information at this stage due to the pending announcement on the provisional Local Government Settlement on 22^nd December.  He, thereupon, proposed that Option 1 be endorsed.

The Leader of the Council commenced by stating that this was an assumptive document that was used for modelling proposals only   by the accountants and senior officers to calculate a baseline figure.  It was also a key document for financial planning and the strategic framework which, was revised on a regular basis and the assumptions contained therein were based on a cash flat budget. A final budget would be produced once the settlement had been received from Welsh Government on 22^nd December.  The Leader concluded by proposing that Option 1 be endorsed.  This proposal was seconded.

It was unanimously,

RESOLVED, subject to the foregoing, that the report be accepted and Option 1 be endorsed, namely that:

-      the MTFS be approved and the following be noted:

-      the forecast funding gap for the period of the MTFS;

-      the cost pressures identified at Appendix 1 of the MTFS; and

-      the forecast financial achievement for the Strategic Business Reviews attached at Appendix 2 of the MTFS.