Rhondda Cynon Taf is planning a council tax rise of 1%, freezes to some fees and charges and spending on things like carbon reduction, public health and the minimum wage.
These are some of the proposals that are included in the council’s proposed budget strategy for 2022/2023 which will be considered by cabinet on Thursday, January 27.
The provisional funding settlement from Welsh Government includes an 8.4% increase for RCT which would total more than £441m if confirmed in the final settlement in early March.
The report said that the cost of reducing the level of increase to 1% from the 2.65% previously modelled would be £1.55m.
Read more: You can find more stories from across RCT here.
On schools, the report said the schools budget (ISB) will increase by £11.2m
from £163.8m to £175m which represents an increase of 6.8%.
It is being increased to cover, in full, all pay and non pay inflationary costs, including increased national insurance costs associated with the Health and Social Care Levy.
Pupil number pressures, Non-Domestic Rates increased costs, energy increases and Additional Learning Need (ALN) delegated funding increases are also included.
There is no efficiency target or expectation but the report said schools “may need to take local action to absorb the financial implications of decisions taken locally.”
In terms of efficiency cuts, the council said it has identified £4.9m worth for next year without adversely impacting on front-line services although the report said this is getting more difficult year on year.
Here are some of the main areas where the council is planning to spend next year:
Business rates relief scheme
The council is proposing an extra £100,000 is added to the budget bringing the level of support available to businesses to £300,000.
Cabinet decided in February 2020 to implement a local business rate reduction scheme for 2020/21 providing relief of £300 per qualifying business, which would supplement the Welsh Government High Street and Retail Rate Relief Scheme.
This local relief was increased to £350 per qualifying business for the 2021/22 financial year.
Welsh Government then provided more support to the retail, leisure and hospitality sectors linked to the impact of the pandemic with that support continuing into 2022/23 with a 50% reduction in Non-Domestic Rates liability.
Climate change and carbon reduction
There will be £500,000 invested to make sure this work is maintained and enhanced wherever possible.
Current investment includes the Carbon (energy) Reduction Programme (£1.6m), Taffs Well Spring (£500,000), biodiversity projects linked to living landscapes (£154,000), an ongoing tree planting programme (current year funding £50,000) in addition to active travel investments (£4.5m), electric vehicle infrastructure (£300,000) and the 21st Century Schools Programme which is committed to achieving net zero carbon buildings.
Public health and protection services
The report said the extra £200,000 investment proposed for the service, added to the £200,000 invested in 2021/22, will enable further consolidation and strengthen the team as well as provide future resilience for the service.
Social services
There would be £1.5m invested into sustainable social services which have been under “extreme pressure” during the pandemic, the report said.
It would go towards the development of the workforce including initiatives to build capacity, strengthen career pathways and develop existing staff in critical service areas.
It would support the remodelling and integration of community services with partners to help address ongoing and growing pressures in the health and social care system, ensuring people are safe and well cared for at home.
Extra investment would be made in preventative services to respond to complex needs and mental health needs as well as increasing capacity for placements to deliver the best possible outcomes for children and young people as close to home as possible, the report said.
Minimum wage – £10 an hour
The council has committed to paying a real living wage for all independent sector social care staff employed by its commissioned service providers
(effective from December 1, 2021).
The Real Living Wage was announced as increasing to £9.90 in November 2021 and this council is proposing to bring forward the implementation of this rate to February 1 as opposed to April 1.
The proposal is that the council further increases this level of minimum wage of £10 per hour from April 1.
This would apply to council staff plus commissioned social care staff at a cost of £550,000.
Funding for investment
The council is proposing to spend £1m next year on delivering new infrastructure developments and significant improvements to existing assets across all areas of the council and across all communities.
Youth services
There would be £75,000 provided for youth services and activities as the council has recognised the impact the pandemic has had on young people across RCT.
Car mileage rate
Since 2015 the council has applied a car mileage reimbursement rate, payable to staff who use their vehicles for work-related purposes.
This has been 35p per mile and the proposal is to increase this to 40p a mile costing £118,000.
Fees and charges
The proposal is that the general rate of increase across fees and charges is set at 2.5% (lower than the 5.4% inflation level) with the council absorbing the implications of not applying an uplift in line with inflation.
But some fees and charges would be frozen including Leisure for Life membership, meals on wheels and day centre meals, school meals, car park charges, summer and winter playing fees for sports clubs, 3G pitch hire, licences for taxis, Pontypridd Lido and Rhondda Heritage Park.
This proposal would cost £44,000
Effect on the budget gap
The budget gap currently stands at £229,000 after taking into account the £9.255m gap with a 4% funding rise, the £11.76m in base budget requirements and the £20.79m of additional resources resulting from the 8.4% increase in the settlement.
The gap increases to £970,000 when taking into account the £4.9m of efficiencies, £100,000 spend on the business rate relief scheme, £500,000 on climate change and carbon reduction, £200,000 on public health and protection services, £1.5m on sustainable social services, £550,000 on minimum rate of pay of £10 an hour, £1m on funding for investment, £75,000 on detached youth, £118,000 on the mileage rate, £44,000 on fees and charges and £1.55m on reducing the council tax rise to 1%.
The proposal is to clear that £970,000 budget gap by using funds from the transitional funding reserve which would leave that reserve pot at £3.63m with the council confident that this will be replenished.
The budget consultation will now move on to stage two with cabinet set to officially recommend its final proposals to council at the end of February.
Council is then expected to vote on the final proposals in March following the announcement of the final local government settlement by Welsh Government.
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