Authority anticipated 2% cut
RHONDDA Cynon Taf council’s budget will be increased by 0.2% in 201718 – which is possibly the best news the authority has had in half a decade.
Council leader Andrew Morgan has “welcomed the protection” from the Welsh Government.
It is the council’s first budget increase in five years, though after inflation estimated at 1.5% is taken into account RCT, like all councils across Wales, will be worse off in real terms.
But, Councillor Morgan said the local authority had been anticipating a 2% reduction in funding for the next financial year, so RCT’s provisional settlement – of £354.8m – has been welcomed.
‘We had anticipated a further reduction’
He said: “I welcome the protection afforded to local government by the cabinet secretary in the Welsh Government’s provisional budget.
“As a result of the cuts to Wales’ funding in recent years, we had anticipated a further reduction of funding the next financial year.
“The prioritisation of funding for the vital services we deliver means that the anticipated funding gap the council faces has been reduced.
“This approach by the Welsh Government will afford us the opportunity to plan and prepare through our medium term financial plan for future financial challenges we know we are likely to face in these uncertain economic times – it also allows us to focus on investment in key areas thanks to the greater financial flexibility it provides.
“While we have had to make tough decisions in recent years to balance the council books, we have also been innovative in our approach achieving savings of over £100m.
“Last year, faced with a budget gap of £20m, less than £0.4m of the required savings were made through service changes with the majority of savings made through efficiencies and different ways of working.
“Though we have had a better than anticipated settlement we will need to continue to adopt the same approach to mitigate the impact of future funding challenges on our communities.”
Coun Morgan added that the council is now “well placed” to tackle financial challenges while continuing to invest in services.
He added: “Challenges still remain, with the increase in cost for the delivery of services as a result of issues such as inflation and increasing employment costs will continue to make prudence a necessity for the foreseeable future.
“This better than anticipated settlement, alongside the effective financial management we have adopted, means that RCT is well placed to manage future financial challenges, while continuing to invest in the regeneration of the county.”