Decision details

CAB 68/17 

Revenue Budget and Medium Term Financial Plan 2018-19: Draft Proposals

Options Considered/Reasons for Decision

The Leader of the Council presented the report, which outlined the draft proposals to form the basis of the budget consultation process for 2018-19. 

The final settlement, received shortly before the meeting, confirmed the ongoing challenge the Council was facing, to continue providing over 800 services to Newport’s growing population on an ever decreasing budget.  Over the last five years, the council had made savings of £41m, but ongoing austerity, coupled with ongoing financial pressures and demands meant that even more savings had to still be found – at least £30m by 2022.  It was too early to provide a full analysis of the final settlement, but this would be included in the final report to Cabinet in February.

The Leader noted that, in response to feedback from opposition members, the format of the budget report had been updated to make it easier to read and understand. 

Some budget decisions were due to be made under “delegated authority”, meaning that officers were authorised to make these decisions without Cabinet or Council approval.  These proposals would not be part of the public consultation.  However, as part of the commitment to openness and transparency, details of all these proposals had been published in the background papers to this report, so the public could see all the steps being taken to address the budget deficit.

Once approved today, the budget proposals in appendix 2 and 6 of the report would be subject to public consultation, together with the fees and charges listed in appendix 7.  Our residents and other key stakeholders will be able to feed back their views on these proposals, and we will receive the results of the consultation process in February, when we will agree the final budget proposals to be recommended to Cabinet.

Cabinet spoke in support of the proposals, including comments on:

·         The intensive and detailed process undertaken to identify, develop and review the budget proposals this year.

·         Recognition that these were the “least worst options” – Cabinet understood that the public were unlikely to be happy with these options, but the Council were required to set a balanced budget, and reductions in funding meant that budget savings had to be found.

·         The low proportion of revenue from council tax in Newport, compared with other authorities.

·         The ongoing austerity and difficult choices ahead in future years.

·         Protection of the education budget, which had been achieved for many years, and recognition of the hard work by school management teams to manage their budgets appropriately.

·         Ongoing lobbying of national governments, on the education budget and generally, about the levels of local government funding.

·         The importance of the consultation process – although the challenge was great, the options were limited, and there was therefore very scope for flexibility, results of the consultation would be considered carefully, and all opportunities to reduce the impact of funding reductions would be looked at seriously.

Decision:

1.    To agree the following draft proposals for public consultation:

i)              Budget savings proposals in Appendix 2 (summary table) and Appendix 6 (detailed business cases).

ii)             Proposed increases to fees and charges in Appendix 7.

iii)            The position regarding the proposed school funding for 2018-19 in paragraphs 5.1-5.6.

2.    To note:

i)              The position on developing a balanced budget for 2018-19, acknowledging that the position will be subject to ongoing review and updates.

ii)             And agree that the Head of Service decisions in Appendix 3 be implemented with immediate effect.

iii)            That Fairness and Equality Impact Assessments have been completed for all propsals requiring one. 

Consultation

Directors; Head of Law and Regulation; Head of People and Business Change.

Implemented By:  Directors and Heads of Service