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 most of the money for local services comes from

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

Welsh Government assumes all Councils generate Council Tax income at an “average level” but in Pembrokeshire, we don’t! For 2018-19 the "average level" was £1,170.48 but our Band D Council Tax was £993.54

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, to you, the Council Tax payer, 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 is increasing, as well as contractual costs, at more than the Bank of England’s 2% target

 

 

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

 

HOW WILL COSTS BE REDUCED AND EFFICIENCY SAVINGS MADE?

The proposed Council Budget Requirement for 2019-20 is £220.49m.

Cost reductions / efficiencies and additional income from a Council Tax increase are required to bridge the £19.6m funding gap for 2019-20.

A total of £15.5m cost reduction and efficiency savings have been identified.

Individual School Budgets and Children and Adults Social Care will receive no increase in their revenue budget for 2019-20, meaning that they will have to identify cost reductions and efficiency savings to meet all inflationary, demographic and other pressures. 

All other Council services have been asked to identify cost reductions and efficiency savings of 8% (of their controllable net expenditure budget for 2019-20).

 

THANK YOU

Thank you to everyone who took the time and trouble to contribute to our Budget Consultation for 2019-20.

Your responses will be compiled into a report, which will be considered by Cabinet at its meeting on 11th February 2019 and by Council on 21st February 2019. A final decision on the Council Budget for 2019-20 will be made by Council at its meeting on 21st February 2019.

 

 

ID: 4336, revised 29/01/2019