Agenda item

The Cabinet Member for Finance and Resources presented a report, which allowed Members to:

• Consider the budget reductions proposed by services;
• Consider the options to apply the Minimum Revenue Provision (MRP) saving to the overall budget and Council Tax increase; and
• Allow Members to recommend a balanced budget and Council Tax increase for 2017/2018 to Council on 2 March 2017.

The report was also supported by appendices, which included information required to enable Members to make informed recommendations to Council.

The Principal Overview and Scrutiny Committee had considered the report in detail at its meeting on 6 February 2017 and had supported the recommendations within the report and had recommended a Council Tax increase of 5%.

Whilst the report provided options for Council Tax increases, having regard to the proposals to reduce budget reductions in Social Services, Education and Environment, Roads and Facilities, further information had since come to light relating to an additional pressure in the Domiciliary Care sector.

Therefore, the Cabinet Member for Finance and Resources proposed that some of the MRP savings be used to address this pressure and that payments to the Domiciliary Care providers be increased to £15.80 per hour and that Council Tax be increased by 4.6%.

There were some concerns raised by Scrutiny Members present regarding the rationale for funding the additional pressure and the proposals to increase Council Tax by 4.6% and not 5%, as recommended by the Principal Overview and Scrutiny Committee. It was felt that by not maximising the Council Tax increase, Council Services were being put at risk.

In response, the Strategic Director (Finance and Efficiencies) advised Members of a meeting on Friday, 10 February 2017, when Domiciliary Care providers raised concerns in relation to the level of fees proposed to be paid in 2017/18.  It was originally proposed to increase the payments from £15 to £15.40, however the Cabinet Member for Finance and Resources was now proposing a further increase to £15.80.  Whilst this increase would assist care providers, payments were still not at a level that could prevent future pressures in that sector.

The Strategic Director referred to table 7 within the report, which identified an amount of £416k, which was potentially available (from savings from the MRP) to aid the budgetary process and help with any emerging pressures.

Whilst the report identified options to increase Council Tax by either 5% or 4.22%, it was felt by the Cabinet Member that the additional domiciliary pressures should be funded from the savings available (approximately £204k) and that the remaining £212k be used to support a reduced Council Tax increase.  The current Administration had been working to lower the average Council Tax increase over recent years, but due to reduced settlements from the Welsh Government and the increasing crisis in Social Care, this had not been possible.  However, due to the changes to the MRP policy, there was an opportunity to provide an alternative to a 5% increase to acknowledge the pressure on households.

The Chief Executive clarified that he favours supporting the sustainability of services, in preference to agreeing a smaller increase in Council Tax, but fully understood that Members would wish to have regard to the amount of Council Tax paid by Conwy's households.  Ultimately, it would be a decision for Council on 2 March 2017, to agree the level of Council Tax increase for 2017/18.

Cabinet Members welcomed the proposal, particularly as it would also reduce the financial burden on residents.  However, there was concern expressed that when the UK or Welsh Government introduced new policies, such as the National Minimum Wage and the Apprenticeship Levy then appropriate funding should be included within Local Government settlements.

RESOLVED-

That it be recommended to Council:

(a)  That the proposal to reduce the budget reduction target for schools from £2m to £1.7m be confirmed (Appendix 1, paragraph 7.7).

(b)  That the proposal to reduce the budget reduction target for Social Services from £2.7m to £2.4m be confirmed (Appendix 1, paragraph 8.6).

(c)  That the proposal to reduce the budget reduction target for Environment, Roads and Facilities from £1.224m to £694k be confirmed (Appendix 1, paragraph 9.7).

(d)  That the proposal to apply £115k to increase the capital programme by £2m for 2017/2018 be confirmed (Appendix 1, paragraph 11.3 and the separate draft capital programme report).

(e)  That payments to the Domiciliary Care Sector be increased to £15.80 and that this be funded from the available savings from the MRP policy.

(f)   That Council Tax be increased by 4.6% for 2017/2018, having considered the proposals above and the effect they may have on the options (Appendix 1, Table 9).