Agenda item

Budget for 2018-19, Medium Term Financial Strategy 2018-2023 and Capital Programme for 2018-2023

To consider the budget for 2018-19, Medium Term Financial Strategy 2018-23 and Capital Programme for 2018-2023.

Minutes:

Council considered the budget for 2018/19 the Medium Term Financial Strategy 2018 - 2023 and Capital Programme 2018 - 2023. (Copy filed with the signed minutes).

 

The Portfolio Holder for Finance outlined the Cabinet’s budget strategy which included substantial investment in Children’s and Adult Services and in the capital programme. He acknowledged the risk in 2019/20 if the Council was to meet the savings required and warned that the Council could not continue in its current form and that significant transformation was required. He advised that this work was already underway. A Council Tax rise of 5% was proposed which would raise £3.5m and which was equivalent to £56 extra per annum for a Band D property. He proposed the recommendations in the budget report, seconded by County Councillor Myfanwy Alexander.

 

Councillor L Corfield arrived at 11.40.

Councillor Michael J Jones arrived at 11.45.

 

County Councillor James Gibson-Watt proposed an amendment, seconded by County Councillor David Selby changing recommendation 2 in the report to:

 

“That the proposed Revenue Budget for 2018/19 be amended as follows-

1.    That the requirement to save £220,000 from the Youth Service budget in 2018/19 be reduced to nil

2.    That the uplift to schools delegated budgets be increased from £1m to £2m

3.    That the Living Wage level be increased for all county council employees who receive it in line with recommendations issued by the Living Wage Foundation

4.    That the total increased funding set aside for social care in 2018/19 be changed from the proposed £10.76m to £8.36m

 

and changing recommendation 5 to:

 

“That a Council Tax increase of 3.75% is included in the budget and approved.”

 

The proposer argued that this was a modest adjustment to the budget to assist services such as schools and the youth service that supported social services through early intervention. He argued that action needed to be taken on schools budgets straight away and noted that members still did not have budget information for individual schools. Council debated the amendment which was lost upon being put to the vote by 12 votes to 53 with 2 abstentions.

 

Council then debated the recommendations in the report. In response to a Member’s question it was confirmed that one other Welsh authority and a number of English authorities had adopted the same approach on Minimum Revenue Provision. A number of members indicated that they could not support the budget. The Leader of the Labour group criticised proposals to make cuts to public services and not to increase the Living Wage in line with the Living Wage Foundation recommendations.

 

Council voted on the recommendations proposed by County Councillor Aled Davies and seconded by County Councillor Myfanwy Alexander.

 

Recommendation 1: by 46 votes to 22 it was 

 

RESOLVED

Reason for Decision

1.  That the Medium Term Financial Strategy for 2018 to 2023 as set out in Appendix 1 to the report be agreed in principle.

To aid business planning and development of the budget over a three year period

 

Recommendation 2: by 46 votes to 22 it was

 

RESOLVED

Reason for Decision

2.    That the proposed Revenue Budget for 2018/19 shown in the Financial Resource Model in Appendix 2 is approved.

 

Statutory Requirement

 

Recommendation 3: by 45 votes to 22 it was

 

RESOLVED

Reason for Decision

3.    That the Fees and Charges proposed within the Fees and Charges Register are approved. (Appendix 4 and 5)

To comply with Powys County Council Income Policy

 

Recommendation 4: by 53 votes to 14 it was

 

RESOLVED

Reason for Decision

4.    The proposed Capital Strategy for 2018/19 shown in Appendix 6 approved.

 

Statutory Requirement

 

Recommendation 5: by 44 votes to 22 with 1 abstention it was

 

RESOLVED

Reason for Decision

5.    That a Council Tax increase of 5% is included in the budget and approved.

There is a Statutory Requirement to set Council Tax but the level is a matter for local determination.

 

Recommendation 6: by 50 votes to 14 it was

 

RESOLVED

Reason for Decision

6.    The authorised borrowing limit for 2018/19 as required under section 3(1) of the Local Government Act 2003 be approved at £400.0m as set out in section 10 of the report.

 

Statutory Requirement

 

Recommendation 7: by 54 votes to 13 it was

 

RESOLVED

Reason for Decision

7.    The Prudential Indicators for 2018/19 are approved as set out in section 10 of the report and Appendix 7.

 

Statutory Requirement

 

Recommendation 8: by 54 votes to 12 it was

 

 

RESOLVED

Reason for Decision

8.    That revised Medium Term Financial Strategy is brought forward by the end of May 2018.

To ensure the Council operates within its means in future years.

 

Council adjourned from 12.58 to 13.50.

 

 

 

 

PRESENT

County Councillor D E Davies (Chair)

 

County Councillors MC Alexander, M Barnes, B Baynham, G Breeze, J Charlton, L V Corfield, K W Curry, A W Davies, B Davies, P Davies, S C Davies, M J Dorrance, D O Evans, J Evans, L Fitzpatrick, L George, J Gibson-Watt, M R Harris, S M Hayes, H Hulme, E A Jones, D R Jones, E Jones, G Jones, J R Jones, E M Jones, M J Jones, D Jones-Poston, F H Jump, K Laurie-Parry, H Lewis, K Lewis, MC Mackenzie, I McIntosh, S McNicholas, D Meredith, C Mills, G Morgan, R Powell, WD Powell, D R Price, GD Price, P C Pritchard, G Pugh, J Pugh, G W Ratcliffe, L Roberts, P Roberts, K M Roberts-Jones, E Roderick, D Rowlands, D Selby, D A Thomas, R G Thomas, E Vaughan, M Weale, J Wilkinson, A Williams, D H Williams, J Williams, J M Williams, R Williams and S L Williams

 

Supporting documents: