Budget Strategy 2017/18

The City of Cardiff Council will need to find more than £24m to balance the books next year it has been revealed. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

The figure, which was released in the City Council’s Budget Strategy report 2017/18, comes on top of £200m which the authority has already had to find over the past 10 years. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

Council Tax is planned to be set at 3.7% the same level it was increased by in 2016. This increase was lower than the majority of increases which were set by other Welsh authorities. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

Cabinet member for Corporate Resources, Cllr Graham Hinchey, said: “We are working our way through an incredibly challenging time financially. Our population continues to grow and demand for the services we deliver is on the rise, but we are getting less money from Government to deliver the services our citizens expect. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“You don’t watch the sort of money walk out the door, which the City Council has seen recently, without having to endure some pretty fundamental changes to your lifestyle. Moving forward this is all about modernisation, collaboration and rationalisation as we do our utmost to combat these severe cuts. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“The pressures being placed on the City Council and its staff are huge, but we have to balance the books. This means we have to look at everything we do to see if we can do it more efficiently. Unfortunately we have no choice but to take a long, hard look at those nice to have services, the ones we take for granted but which the authority does not have a strict legal responsibility to provide (Statutory Services). I do believe people are beginning to understand the seriousness of the situation. We are stretched across the piece. The impacts of these cuts can now be seen, but I want everyone to know our staff are working incredibly hard to deliver for citizens despite the cuts. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“We need our residents to engage with us. It’s terribly important they make clear to us the services that really matter to them, as there is no doubt some services will have to go or, at the very least, the way they are delivered will fundamentally have to change. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“A case in point is our new partnership arrangement with Greenwich Leisure Limited (GLL) which will see them take over the running of most our leisure centres. Quite simply we can’t afford to run our leisure centres anymore, but teaming up with leisure experts GLL (a not-for-profit charitable enterprise) means that residents will still be able to enjoy our leisure facilities for many years, and jobs have been safeguarded for the future.” ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

The Council has five ways of making up the £24m budget gap for 2017/18. These are:
• Make savings
• Grow revenues
• Use reserves
• Increase Council Tax
• Limit non-demographic schools growth (this is the money schools receive above money allocated per pupil) ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

Setting a budget strategy involves finding a combination of these that is realistic, protects the Council’s financial interests and recognises the Council’s service priorities. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

The Council is proposing to make up the budget shortfall by finding £15.2m in savings; using up £1.5m in earmarked reserves; limiting growth on non-demographic schools’ budgets by 30% saving £1.2m; raising £4.4m in Council Tax charges; with the remainder made up through new initiatives around income generation. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

Cllr Hinchey said: “At this moment in time, with all the uncertainty surrounding Brexit, we are proposing to leave the Council Tax increase at 3.7% as a planning assumption. This is the same level it was increased by in 2015/16 when we were below the average Council Tax increase set by the majority of Welsh councils. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“School budgets are not being cut, quite the contrary. In fact they are growing. We are investing more money in education than ever before, improving schools, building new schools and we are seeing the fruits of our efforts with much improved exam results. However, we are asking schools to find some money from their delegated budgets to go towards things like pay increases or utility bills. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“We are using some Council reserves, but using reserves to fund the budget is not a long-term solution. A bit like using your savings to buy groceries – once they dry up you have a problem feeding yourself. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“The council has plans to grow revenues in the future bringing more money into the organisation to offset budget shortfalls and to help us deliver even better services for our residents. We are developing business plans which will see us work in collaboration with neighbouring authorities, creating efficiencies and generating cash. In recent years we have had success in this area delivering trading standards with the Vale and Bridgend, sharing of health and safety responsibilities with Caerphilly and working with five local authorities on waste disposal. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“We will continue to concentrate on our priorities of delivering better education and skills for all; supporting the vulnerable; creating more and better paid jobs; and working with our partners to transform the way services are delivered. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“We are being open and upfront about the difficult choices we have to make. That’s why we want our residents to have their say. Over the summer citizens can complete the Ask Cardiff survey which will have questions around some of the savings we are looking to make. This will be followed up with more detailed consultation in the autumn.” ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​