Agenda item

Context:

To scrutinise detailed draft proposals on the budget savings required to meet the gap between available resources and need to spend in 2017/18. Also, to consider the 2017/18 budget within the context of the 4 year Medium Term Financial Plan (MTFP) and the emergence of priorities to guide forward activities through Future Monmouthshire.

Key Issues:

The Select Committee scrutinised the Enterprise budget proposals, as outlined in Appendix 3c of the report, which related to the following departments within the Enterprise Directorate:

·         Tourism, Leisure and Culture.

·         Planning.

·         Housing.

·         Economic Development.

Member Scrutiny:

·         In response to a Select Committee Member’s question regarding the mandate for markets being undeliverable, it was noted that an opportunity has arisen to re-set the Budget.  Therefore, this year, the opportunity was taken to redress and re-balance the pressure points within the Budget and lessen the impact on services.  The markets budget falls into the issue of being able to re-set the budget.  It is recognised within markets that there was an issue with a recurrent overspend as a result of a shortfall in income.  An ambitious mandate had been brought through to generate further incomes.  The opportunity has been taken this year to not over extend this service whilst bringing down the over spend.  This allows for the markets and its budget to be taken forward in a sustainable way.

·         Apprenticeship Levy – It was noted that with regard to money coming in, this matter is being worked through.  Whitehall is looking to pass money across to Welsh Government with regard to monies being collected through the Apprenticeship Levy.  We will see how this money gets re-patriated back into the business community and to local authorities. This is actively being discussed in the City Deal discussions.

·         Rate Revaluations – It was noted that increases across the board in Monmouthshire have been higher for businesses than in other authorities in Wales.  Within Monmouthshire there is an 11% increase.  Across Wales there has mainly been a decrease in rate revaluations.  There are areas in Monmouthshire that are being hit hard, namely, in hospitality and retailing industries.  The Welsh Government has brought forward a fund of £10,000,000 to help alleviate these pressures.  However, this is only a one off grant to be spread across Wales and does not address the long term problem of rates.  Details of how the grant is to be allocated is not yet available.  The Select Committee will receive an update regarding the allocation of the £10,000,000 grant.

·         Superannuation 21.1% employer’s rate - It was noted that other authorities pay less than the 21.1% paid by Monmouthshire.  It was noted that the Local Government Pension Scheme is a national scheme so it was not within Monmouthshire County Council’s gift to unilaterally change the national scheme.  It was considered that this matter should be referred to the Audit Committee to investigate why Monmouthshire County Council is having to carry a higher superannuation rate compared to other local authorities.

·         The Enterprise Directorate’s income generation proposals equate to £9,000.  The Directorate has done its utmost to generate income in previous years. Alternative delivery models and different ways of working are now required and are being investigated.

·         Legal Services Income Target Mandate undeliverable – The Head of Finance would contact the Head of Legal Services to ascertain the latest position with regard to this matter.