To consider the budget for 2016/17, the Medium Term Financial Strategy and the Capital Programme for 2016-2021.
Minutes:
Council considered the budget for 2016/17, the Medium Term Financial Strategy 2016/2019 and Capital Programme 2016/2021. (Copy filed with the signed minutes).
The Portfolio Holder for Finance explained that in addition to presenting a balanced budget for 2016/17, the Medium Term Financial Strategy set out provisional proposals up to 31st March 2019, giving a balanced three year position. In presenting the report the Portfolio Holder thanked his colleagues on the Cabinet, members of Scrutiny and officers for their work in shaping the budget. He also acknowledged the additional funding made available by Welsh Government and the support of Assembly Members in lobbying for this which meant that the Cabinet did not have to bring forward a number of cuts to services that had been under consideration. The Portfolio Holder for Finance reminded Council of the savings already achieved and of the savings still to be made up to 2020. Despite the need to make savings the Cabinet were recommending protection for the schools budget of £1.273m and additional 2% funding for the Adult Social Care budget as there had been clear public support for this in the consultation. The Portfolio Holder for Finance explained that the approach taken by the Cabinet was to deliver a budget for change which kept front line services intact by supporting the transformation agenda. Cabinet was recommending a 4.25% rise in Council Tax and the Portfolio Holder for Finance explained that £500,000 had been taken from reserves to reduce the recommended rise from 5%.
Portfolio Holders answered questions from Members. In response to comments about the Single Integrated Impact Assessments, the Portfolio Holder for Finance agreed that they needed to be more consistently and accurately completed and he advised that training and guidance would be provided for officers completing them. Training would also be provided for portfolio holders who were required to sign them off. Work on next year’s SIIAs would start in April and May.
A number of Members expressed concerns about some of the savings proposed and challenged Portfolio Holders on the impact of savings on services. The Portfolio Holder for Finance explained that cuts of the scale the Council had to deliver required a rethink on how services were delivered including transferring services to communities as an alternative to withdrawing them. A number of members argued that the level of Council Tax proposed was unaffordable and that the funding formula was unfair. The Portfolio Holder for Finance advised that to set the Council Tax lower would be to risk any future support from Welsh Government and that he understood that the funding formula was under review.
County Councillor P Harris left at 11.58 a.m.
County Councillor WD Powell arrived at 12.35 p.m.
It was moved by County Councillor DR Price and seconded by County Councillor AG Thomas that the matter be put.
RESOLVED that the matter be put.
The Portfolio Holder for Finance moved the recommendations in the report, duly seconded and it was
RESOLVED |
Reason for Decision:
|
1. To approve the proposed Revenue Budget for 2016/17 shown in the Financial Resource Model in Appendix 2 to the report. |
Statutory Requirement |
2. That a Council Tax increase of 4.25% is included in the budget that goes to full council on the 9th March 2016. |
There is a Statutory Requirement to set Council Tax but the level is a matter for local determination. |
3. That the Medium Term Financial Strategy for 2016 to 2019 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 |
4. The authorised borrowing limit for 2016/17 as required under section 3(1) of the Local Government Act 2003 be approved as set out in paragraph 9.9 of the report. |
Statutory Requirement |
5. The Prudential Indicators for 2016/17 are approved as set out in section 9 of the report. |
Statutory Requirement |
Capital Budget 2016/17 to 2019/20
The Portfolio Holder for Finance presented the Capital budget. The Capital Programme for the next 4 years totalled £163m which represented a significant regeneration impact for the economy of Powys alongside the effect of better infrastructure to deliver services. Capital investment also had a significant input into the delivery of revenue savings.
Council discussed the County Farms Estate and maximising the return on the Council’s investment. County Councillor TJ Van Rees declared a personal and prejudicial interest and left the meeting during the discussion. The Portfolio Holder for Environment and Sustainability agreed on the need to maximise the return and advised that there would be a report on the County Farms Estate going to the Cabinet in May.
In response to a question on the capital budget for special schools, the Portfolio Holder for Education advised that there would be a report coming to Cabinet and he undertook to keep County Councillor JR Jones and the governors of Ysgol Cedewain informed.
County Councillor AW Davies proposed and County Councillor GD Price seconded amendments to the Capital Programme.
Council adjourned at 13.45 and reconvened at 14.15.
PRESENT
County Councillor PJ Ashton (Chair)
County Councillors M C Alexander, D Bailey, GR Banks, R G Brown, J H Brunt, LV Corfield, A W Davies, D E Davies, E R Davies, L R E Davies, S C Davies, S Davies, M J Dorrance, V E Evans, R I George, MR Harris, S M Hayes, A Holloway, J C Holmes, E A Jones, D C Jones, D R Jones, M J Jones, E M Jones, G M Jones, J R Jones, W T Jones, F H Jump, H Lewis, DJ Mayor, S McNicholas, P J Medlicott, G Morgan, W J T Powell, W D Powell, G D Price, P C Pritchard, K M Roberts-Jones, K S Silk, D A Thomas, W B Thomas, D G Thomas, R G Thomas, TG Turner, T J Van-Rees, G P Vaughan, D H Williams, S L Williams, J M Williams, G I S Williams and E A York
County Councillor AW Davies proposed and County Councillor GD Price seconded two amendments to the Capital Programme.
1. That an additional £1 m of capital be allocated to the School Major Improvements Capital Programme each year from 2017/18 to 2019/20.
2. That Cabinet consider putting in place a £500,000 fund for 2017/18 to support capital improvements for assets transferred to communities.
Council voted on the first amendment
RESOLVED that an additional £1 m of capital be allocated to the School Major Improvements Capital Programme each year from 2017/18 to 2019/20.
Council voted on the second amendment. The amendment was lost upon being put to the vote.
The Capital Strategy was moved by the Portfolio Holder for Finance and duly seconded and put to the vote.
RESOLVED |
Reason for Decision |
Subject to the amendment passed above, the proposed Capital Strategy for 2016/17 shown in Appendix 4 to the report be approved. |
Statutory Requirement |
The Leader thanked the Portfolio Holder for Finance, the other Cabinet members, officers and Scrutiny members for their work on the budget.
Supporting documents: