Agenda item

The Leader presented the report, which outlined the draft budget proposals for 2021/22.  It was the subject of significant work over the last few months; much of it was done within a challenging context of very little or no information from UK or Welsh Government (WG) regarding core and short term Covid-19 related funding for 2021/22 and uncertainty coming out of Brexit. The Council only received details of its draft ‘Revenue Support Grant’ (RSG) on 22 December 2020 and given the significant uncertainties mentioned above, finalised proposals after that.  More work was still required, given the much higher than expected grant settlement, although a lot of work was done after the settlement so that the draft budget was as comprehensive as possible.

As a result of this the budget consultation started slightly later than usual but the remaining budget-setting timetable was adjusted to maximise the time available for consultation.  This meant that residents, service users and stakeholders; such as the independent Fairness Commission, would have four full weeks to take part in the consultation.  The consultation had commenced and the Leader asked that residents, partners and all parties engaged fully.  The Leader was committed to a full and comprehensive engagement on this, including with internal processes such as scrutiny committees.

As always, all individual proposals, both investments and savings, were listed in the appendixes to the report. The budget savings with service impact were included in detail and the report provided links to the detail of other budget savings. We were specifically consulting on those with service impact and would take comments received into consideration before finalizing any decisions in February. Others proposals with no impact were being agreed today for implementation by Heads of Service.

Turning to some of the detail:

§  Inflationary costs increased the amount to just over £5m next year and was around this level each year, based on planning assumptions. There was significant uncertainty on pay inflation next year with both the UK Chancellor announcing a one year pay freeze, excluding the lowest paid and that Local Government determined its own pay arrangement.  In addition, teacher’s pay was determined by the relevant Welsh Government Minister.  As this was a high risk budget area, the Council had provided for inflationary increases here, as noted in the report

§  For 2021/22 specifically, the council was currently planning to invest almost £8m in the draft budget over and above an allowance for pay and pricing inflation.  More details on proposed investments were included in appendix 1 and some of the key items included:

• £1.8m investment in school budgets
• £2.6m investment in the capital programme, to facilitate both the Councils and City Deal aspirations for the city and region
• £1.5m for increasing demand in social care demand for both children and adult services
• £305k investment to deliver the promises set out within the Corporate Plan such as the delivery of digital aspirations and a new household waste recycling centre.

§  In terms of savings, the quantum for 2021/22 was £3.3m of which just over £600k had already been agreed in previous budget decisions and £2.7m were new proposals.  Of this, the Council identified just under £1 million for consultation but we had also worked hard to identify as many savings with little or no impact and these amounted to £1.7 million.

The Council was consulting and agreeing on all budget savings set out in the report for this year and including a small amount of nearly £260k which was identified for future years.

There was also a proposed Council tax increase of 5%.  The Leader appreciated that this was larger than inflation increase but as the report highlighted, Newport had a low Council Tax and even with a good WG financial settlement, we needed to be mindful of this to ensure support our most vulnerable residents, invest in our infrastructure and support our ambition for the city regeneration.  Even with the good additional funding the WG settlement would bring, our need to invest in services and the city meant we needed to increase Council Tax and find savings.  The budget was not about the Council Tax increase only; it was balanced by savings also being made and the investment in the city and services, which came with it.

Comments from Cabinet:

Councillor Rahman referred to the £35M savings and noted that since 2012 there had already been £74.8M worth of savings and cuts but that services were still running well, which was thanks to the staff delivering the services of a caring Council supporting residents.

Councillor Truman noted that these were challenging times but that the Council and residents would get through this.  The budget demonstrated that the Council was investing in services and staff working were working hard, it was therefore important to invest in services where we could.  This was a listening budget, which would welcome comments from members of the public.  It was also mentioned that some councils had gone bankrupt but that Newport City Council were not in this position and  was still managing to maintain services which was positive.

Councillor Jeavons referred to page 42 of the Agenda papers; waste enforcement officers still needed to continue to improve the recycling needs and he thanked residents for their recycling efforts.  This essential service provision was still in place, which was good for Newport.

Councillor Davies commended the budget proposal, and echoed previous comments that this was a listening budget and that it was a key priority that residents responded.  One of many investments which was to be praised, was the empty properties fund.

Councillor Harvey mentioned that we were in the worst situation since World War Two and that staff on ground were continuing to pick up waste/refuse whilst putting themselves at risk.  Newport City Council delivered a first class service ran by first class staff.

Councillor Giles noted that the Council always and remained committed to ensure residents had everything they needed.  This was a difficult time for parents/cares and teachers alike.  Education Services had a demand on the budget, giving vital provision and commitment to new school builds, including Welsh Medium schools.

Councillor Mayer wanted to remind members of the public that there were different ways of commenting on consultation, via mail, the website; My Newport and Newport Matters.  It was hoped that the residents would engage with the Council and give their feedback.

The Leader invited the Cabinet Member for Social Services, Councillor Cockeram to say a few words regarding the budget proposals and how it would impact on his portfolio/service area.  It was explained how the council was making positive strides to improve social care for children by investing in accommodation such as Rose Cottage which cut down on out of County placements. There was huge savings being made by reducing Out of County placements.  Rose cottage was a total success and was nominated for the Social Care Awards and although we did not win, were highly commended.  Social Services gave an excellent All Wales presentation on Rose Cottage, giving an example of a local child, returned from Out of County Placement in Scotland, where they thrived at Rose cottage and eventually returned to their birth mother.  Savings of  around £8K per week was also being made.  Another home was being refurbished and would be ready by February and Windmill Farm, with three houses, it was therefore justified to close Cambridge House. 

The Leader reflected on the comments that colleagues made and it reiterated that it was their job as a Cabinet to consider the proposals that would go out to the public, which was an important decision to make.  The Leader thanked Cabinet Members for their valued comments and experience in their portfolios, in particular Councillor Cockeram and Truman and the commitment of officers.  The Council continued to modernise Newport without having a negative impact on the economy.

This was also about investing in the service areas as requested by the Wels Government and these were evidence based decisions on how services had been maintained throughout the pandemic, by comparison to other councils.  These decisions were not taken lightly and the Council had a moral and ethical duty.  The information was all there and the Cabinet welcomed comments from the public.

Careful consideration had been taken not to consult on the refurbishment of View Point Car Park with both   Councillors Harvey and Giles supporting this decision.  The Leader thanked Councillors Mayer and Whitehead for their input.

Agreed:

1.         Cabinet considered very carefully all the proposals put forward by officers and

            agreed to the following draft proposals for public consultation:

i)              Budget savings proposals in appendix 2 (summary table) and appendix 5 (detailed proposals), including the decision making point (either full Cabinet or Head of Service) for each one. This was with the exception not to proceed with the savings proposal for introducing  parking charges to three park and countryside car parks - Glebelands, Christchurch (Local Nature Reserve) viewing point and Morgan’s Pond (off Bettws Lane) (proposal No STR2122/07).

ii)             Approved implementation of the delegated decisions in appendix 3 by Heads of Service with immediate effect, following the usual Council decision-making processes.

iii)           A council tax increase of 5%, a weekly increase of £0.77 - £1.02 for properties in Band A to C, the most common bands in Newport, as set out in paragraphs 3.21 – 3.24.

iv)           Proposed fees and charges in appendix 7, there were no increase in car parking fees in this Appendix.

v)            The budget investments shown in appendix 1.

vi)           The budget investment provision in schools of up to £4,937k, which was based on an assumed teachers/ NJC pay increase and provided for a fully funded increased funding requirement, based on that, plus the cost of new/ expanding school provision as noted in paragraph 3.14 – 3.20. Specifically here, Cabinet agreed to confirm and finalise this when there was certainty on Teacher’s pay from September 2021 with the intention of retaining the objective described above, within the funding provision available.

2.    Cabinet noted

i)              The position on developing a balanced budget for 2021/22, acknowledging that the position was subject to ongoing review and updates especially in light of the late announcement from WG in respect of the final 2021/22 funding.

ii)             The medium term financial projections, assumptions contained within and that the projections contained investments required to implement the Corporate Plan promises.

iii)           That initial Fairness and Equality Impact Assessments were completed for all those requiring one.

iv)           The need to prioritise the development of a ‘strategic change programme’ in order to develop a long-term sustainable financial footing for services.