Finance and Business

How will the Council Budget for 2019 2020 be agreed

WHY ARE WE HAVING TO REDUCE COSTS AND MAKE EFFICIENCY SAVINGS? 

The amount of grant we receive from Welsh Government has been cut and we have the lowest Council Tax in Wales

Government grant and Council Tax is where all the money for local services comes from

Welsh Government determine how much Councils need to spend to provide their services

Welsh Government grant assumes all Councils generate Council Tax income at an “average level” but in Pembrokeshire, we don’t!

Our neighbouring Council’s Carmarthenshire and Ceredigion are able to generate substantially more Council Tax income than Pembrokeshire due to higher tax rates

The Council provides the same services as all other Councils in Wales at significantly less cost, which must make us the most efficient in Wales

Workforce costs are rising

This is because of increases in national minimum and living wages, and significant increases in pay awards and employers contributions to teachers’ pensions

An increase in the number of people needing our help

The number of older people in our population is increasing, which is increasing the demand on our adult social services

Non-Workforce costs are rising

Inflation and contractual costs are increasing at more than the Bank of England’s 2% target

Forecasters also think that inflation will increase further after Brexit in March 2019

They think that the biggest impact of an increase in inflation will be on areas outside of London, including Wales

WHAT IS THE REVENUE BUDGET SPENT ON?

In 2018-19 our total net revenue budget was £215.5m

 

PEMBROKESHIRE COUNTY COUNCIL
REVENUE BUDGET

2018/19
Net Expenditure

£'000

 Education Services

 Social Care - Children

 Social Care - Adult Services

 Housing Services

 Council Housing

 Highways & Transport Services

 Culture & Related Services

 Planning

 Environmental Services

 Other Central, Corporate & Democratic Services

87,439

13,455

51,587

1,138

0

8,233

5,961

1,597

13,702

5,719

 Council Tax Reduction Scheme

 Court Services

 Transformation

 Second Homes Council Tax (Community)

8,713

267

0

0

 Total Service Budgets

197,811

 Levies

 Net Investment Income / Capital Financing Costs

7,397

10,331

 COUNCIL BUDGET REQUIREMENT

215,539

 

WHAT HAVE WE ACHIEVED SO FAR?

Over the last five years we have already bridged a funding gap of £68.6m

The funding gap was bridged by a combination of £14.7m additional income from Council Tax increases, £52.6m in cost reductions/efficiencies, a £0.6m contribution from the Council Tax 2nd homes income (community element) and a £0.7m one-off contribution from reserves

We have endeavoured to ensure that cost reductions/efficiencies have been made within the Council wherever possible, in order to minimise the impact on services to our customers, particularly those which impact upon the most vulnerable in our communities

We introduced a Council Tax premium for second homes in 2017-18 and will be introducing a Council Tax premium for long-term empty properties in 2019-20

Since the introduction of the premium we have:

Agreed to progress with a target of 10 affordable homes each year, with Solva, Llangwm and Fishguard/Goodwick being identified as priority areas for building

Established the Enhancing Pembrokeshire Grant fund, which provides resources to support local organisations to offset the impact of second homes within their communities

WHAT WILL HAPPEN NEXT?

We will develop a set of budget proposals for 2019-20.

These will include options for Council Tax increases for 2019- 20.

They will also include options around changes to some local community services.

 

Activity

Date

Time and Venue

Draft Budget to Cabinet

Monday 3rd December

10am, County Hall

Facebook Live Session 1

Tuesday 4th December

7pm

Draft Budget to Council

Thursday 13th December

10am, County Hall

Start of Budget Consultation

Monday 17th December

www.pembrokeshire.gov.uk/haveyoursay

Drop in session

Monday 17th December

2 - 4pm, County Library & Gallery

Facebook Live Session 2

Monday 7th January

7pm

Drop in session

Wednesday 9th January

3 - 5pm, County Library & Gallery

Public Question & Answer Session

Wednesday 9th January

7 – 8.30pm, Pembrokeshire Archives

Facebook Live Session 3

Wednesday 16th January

7pm

Drop in session

Thursday 17th January

2 - 4pm, County Library & Gallery

End of Budget Consultation

Friday 18th January

 

Final Budget to Cabinet

Monday 11th February

10am, County Hall

Final Budget to Council

Thursday 21st February

10am, County Hall

We will post details of our consultation for the Council Budget 2019 - 2020 on this page in due course

You can view webcasts of Cabinet and Council meetings 

We welcome questions and responses in Welsh.

You will be able to request hard copy consultation documents via our Customer Contact Centre on 01437 764551, from Monday 17th December. 

ID: 4336, revised 10/12/2018