Anglesey’s Executive has proposed a ‘prudent Budget’ in the face of continuing financial challenges and cost-of-living crisis.
Its members today (Thursday 2 March) recommended a 5% Council Tax increase as part of proposals to protect vital front-line services over the coming 12 months. Final Budget proposals for 2023/24 also include services cuts of more than £700,000 and using more than £3.7m in reserve balances.
Rising energy costs and inflation; greater service demands; a potential pay increase for staff agreed nationally and less funding from Welsh Government in years to come have all been important factors in preparing a balanced Budget for 2023/24.
Ensuring that current cost-of-living crisis is not compounded for residents has also been at the forefront of the Executive’s thinking. Its proposed 5% increase would keep Anglesey’s Council Tax as the lowest in North Wales and amongst the lowest in Wales. This would mean a weekly increase of £1.31 on an average Band D bill.
Council leader, Councillor Llinos Medi, explained, “We have already spent a decade trying to defend local residents and communities in the face of severe funding cuts.”
“We face significant financial challenges in both 2023/24 and 2024/25, with costs still expected to rise due to inflation and increased service demand. Unfortunately, there is little prospect that the funding we receive from Welsh Government, via the UK Government, will be enough to cover all of these increases in costs.”
“My Executive believes that this is a Budget which will allow us to protect front-line services; as well as meet the growing demand on adults’ and children’s services and homelessness prevention.”
She added, “As council leader, I lead our response to the cost-of-living crisis and am well aware of the impact the increase in inflation, interest and borrowing rates, and mortgage costs are having on the people of Anglesey, communities, organisations and businesses.”
“In response, our proposed increase would ensure our Council Tax bill remains the lowest in North Wales and one of the lowest throughout Wales. We have used more of our reserves to ensure that the Council Tax increase is kept as low as possible. Our Budget will also continue to protect front-line services, which are delivered by our dedicated staff, to safeguard some of the most vulnerable people in our communities.”
The Executive will recommend that funding from the council’s general reserves be used to meet a possible pay increase for council staff in 2023/24 – rather than having to find more efficiency savings, which would impact services, or raising Council Tax above 5%.
It will also ask the Full Council to back proposals to raise second home Council Tax premium to 75% and the empty property Council Tax premium to 100%.
Finance portfolio holder, Councillor Robin Williams, explained that the local government still faced significant financial challenges and these were far from over.
Councillor Williams said, “Sadly, there is no magic hat we can use to pull more money out of. It is only through prudent and careful financial management we can ensure a balanced Budget this year. With our financial position unlikely to improve next year either, we face even greater challenges ahead.”
“We will continue the approach of utilising a sensible mix of efficiency savings, careful use of reserves and small increases in Council Tax. This is the correct and proper way to ensure that the county council continues to deliver vital front-line services and that burden of delivering a balanced Budget does not weigh too heavily on the Island’s residents.”
Councillor Llinos Medi thanked the council’s Corporate Scrutiny Committee for its valuable input into the lengthy Budget deliberation process.
The Full Council, on Thursday 9 March 2023, will be asked to adopt the proposed final budget of £172.548m and an increase of 5% in the Council Tax. The Council Tax proposal will also include the North Wales Police and Community Council precepts.
Ends 2 March 2023