The Leader gave his report as follows in respect to the next item on the agenda, ie the Medium Term Financial Strategy 2015-16 to 2018-19:-

           “Colleagues will be fully aware of the events that have led us here today as we gather to consider the updated Medium Term Financial Strategy, or MTFS.

  As you know, local government is facing a very challenging financial outlook.

Putting this strategy together has been an extremely demanding process, but it lays out how we intend to continue with our efforts to deliver high-quality services and achieve our targets and budget reductions for 2015-16.

The MTFS has once again been designed to reflect the priorities of our Corporate Plan – that is, to develop our local economy, raise aspirations and educational achievement, support children and their families, help people to live healthier lives, make better use of resources, and help vulnerable and older people to live independently for as long as possible.

We have already delivered huge reductions via the MTFS, internal efficiencies, collaborative projects, contract renegotiations and the potential transfer of specific services to partner organisations.

Nevertheless, we currently estimate that the authority still needs to identify budget reduction proposals of up to £49m over the next four years.

           Faced with cuts of this magnitude, we all need to prepare for the fact that the council will not be in a position to provide the current level and range of services or jobs in future years, and that some particularly difficult decisions are still ahead of us.

           While none of us like being in the position of being asked to endorse something that restricts spending or has an impact on council services, we do need to keep in mind the reality of the situation facing local government across Wales, and also the legal requirement for all councils to deliver balanced budgets for the year ahead.

            Against this backdrop, I believe that the MTFS for 2015-16 is robust, fit-for-purpose and above all extremely realistic about the challenges that we face.

           The 2015-16 revenue budget has been crafted to help us achieve our budget reduction target for the year, protect essential front-line services as far as possible and drive forward improvement in areas that local people feel are most important.

           Incorporating a net budget of £252 million, a capital programme of £33 million and budget reductions of £11 million, it ensures that the council can meet all of its statutory responsibilities and reflects the priorities of the Welsh Government as well as UK economic and public expenditure plans.

            As laid out in last year’s discussions, a council tax increase of 4.8 per cent is reluctantly included in the proposals.

           This is the equivalent of an extra £1.10 a week for a Band D property, and is necessary to ensure that the authority can continue to meet the needs of local residents.

            Funding for highways and transportation repairs, housing renewal schemes, disabled facilities grants, regeneration initiatives and a range of community projects have all been prioritised in the strategy.

           Extra funding for schools has also been provided by the Welsh Government as part of its commitment towards protecting school budgets across Wales.

           I think it is important to acknowledge that local residents have played an important role in putting these proposals together by participating with a major public consultation exercise that incorporated a series of public workshops and a questionnaire that was made available in a variety of formats.

           The consultation used an online ‘budget simulator’ tool to give people an insight into the budget setting process, including the potentially far-reaching implications of having to make budget reductions to specific council services, the authority’s need to meet all of its statutory requirements and more.

           The results of the consultation demonstrated that half of all participants believed they were already very aware of the council’s financial situation, and highlighted some interesting issues.

           For example, 64 per cent supported proposals to save £492,000 over three years by delivering library and cultural services through a not-for-profit trust, and more than one in three people thought that residents could help reduce demand on council services by taking on more personal responsibility.

           All of the feedback has been reflected in the MTFS, and I would like to offer my thanks to everyone who took the time to pass on their views and help inform the 2015-16 budget.

           This has not been an easy process, but then I don’t believe that deciding where to prioritise council funding should ever be ‘easy’.

           We have considered all options very carefully to try and deliver the right balance, and I think that the MTFS before you today achieves this.

           Despite the difficulties of the situation, I am still proud of Bridgend County Borough, and still ambitious for the people who live and work here.

           The ways in which we provide services are changing to meet many of the challenges we now face, and it is widely accepted that public services across Wales are set to change further in future years, too.

           This strategy equips us with the tools necessary to meet this change head on, and ensure that Bridgend County Borough continues to enjoy a sustainable, successful future.”