The Budget for 2024/25
Liam Hull, the 151 Officer (Chief Finance Officer) has stated:
“No local authority would be sustainable without council tax receipts, and not agreeing council tax would not allow us to set a balanced budget.
The Facts
In these circumstances, the Section 151 Officer has a legal responsibility to issue a Section 114 notice as the council’s ability to meet our obligations would be compromised.
Members’ Fiduciary Duty
Members’ fiduciary duty includes a duty to council taxpayers to avoid unlawful action that would result in the loss of significant revenue to the council or a failure to deliver services with consequential litigation and adverse financial implications to the council.
Consequences of Failure to set a budget
“Failure to set a lawful budget by the statutory deadline could lead to personal liability for individual members for misfeasance in public office, negligence or breach of statutory duty.”
The 8% hike would mean a band D council tax bill would be £1,974.61 for 2024/25 which is an extra £146.27 or £2.81 per week.
Is Mayor’s position untenable
The Mayor abstained from voting for the budget at the meeting in 28th February.
The result of the vote for the budget was 14 for and 14 against.
In such a situation, the Mayor is entitled to exercise his right to a casting vote.
On this occasion, the Mayor decided to abstain from exercising his casting vote.
As a result, the Council was unable to settle on a budget agreement for 2024/25.
I am not sure that the Mayor understood what would happen if he did not use his casting vote to agree to the budget.
If you watch the end part of the following video, you will note that it appears that the Mayor thought that there could have been some other proposals to be considered.
The Monitoring Officer stated that it was not possible to consider any further proposals at that time as the proposal to agree the budget had not been passed.
The Monitoring Officer advised that the only option available was to meet again on 6th March to agree the budget with any other possible proposals that may be put forward to the Council.
The Mayor was, of course, entitled to abstain from the vote to approve the budget.
At that point, he may not have been aware that there would be a need to exercise his casting vote.
The Mayor may not have realised that failing to use his casting vote could lead to the personal liability for individual members for misfeasance in public office, negligence or breach of statutory duty.”
NOTE
The 151 Officer (Chief Finance Officer) could face a legal challenge if he failed to issue a Section 114 notice
Hyperlink to Walesonline Article https://www.walesonline.co.uk/news/local-news/welsh-council-grind-halt-staff-28735612#ICID=Android_WalesOnlineNewsApp_AppShare
Merthyr Council will ‘grind to a halt’ if the budget is not passed at Full Council meeting on 6th March 2024 – Walesonline Article – Local Democracy Reporter
Merthyr Council Cover-up 