Have your say

Council Budget 2019 2020

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 Council Tax rates

The Council provides the same services as all other Council’s 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 HAS BEEN ACHIEVED SO FAR?

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

The funding gap has been 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 minimise the impact that cost reductions and efficiencies have on services for 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 (after the inclusion of a contingency and additional cost reduction / efficiency slippage from 2018-19 – see table below).

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).

WHAT IS THE REVENUE BUDGET SPENT ON?

PEMBROKESHIRE COUNTY COUNCIL
REVENUE BUDGET

2019-20
Estimate Net Expenditure

£’000

Education Services

87,424

Social Care - Children

13,412

Social Care - Adult Services

51,584

Housing Services

1,105

Council Housing

(Housing Revenue Account, ring fenced)

0

Highways & Transport Services

7,947

Culture & Related Services

5,948

Planning & Development Services

1,581

Environmental Services

13,945

Council Tax Reduction Scheme

9,500

Central, Corporate & Democratic Services

6,704

Court Services

334

Transformation

346

Strategic Workforce Planning

335

Contingency

1,000

Additional cost reductions/efficiency slippage 2018-19

300

Total Service Budgets

201,465

Levies

7,556

Net Investment Income

(205)

Capital Financing Costs

11,669

Council Budget Requirement 2019-20

220,485

    Provisional Aggregate External Finance (AEF)

(161,656)

    Flat-line Council Tax (base change only)

(53,693)

    Additional Funding Requirement

5,136

 

IMPACT ON CUSTOMER FACING SERVICES

A number of the cost reductions and efficiency savings that have been identified will impact on customer facing services.

We welcome your feedback on these proposals, together with options we are presenting for Council Tax increases for 2019-20.

Your Views

You can give your views by completing our online response form

Alternatively you can complete a hard copy and return it to surveys@pembrokeshire.gov.uk or post to: Pembrokeshire County Council, Policy, 2D County Hall, Haverfordwest, SA61 1TP.

Please return by Friday 18th January 2019

 

ID: 4539, revised 17/12/2018