Council faces £6m budget gap

RHONDDA Cynon Taf will be facing a budget gap worth nearly £6m next year.

Having previously identified a budget deficit of £9.9m in July, this has now reduced to £5.92m with an assumed council tax increase of 3%.

The council is set to receive an increase of 0.3% in its funding from Welsh Government next year through the revenue support grant (RSG) after the provisional announcement this month with the final announcement due in December.

The biggest increase is for Cardiff which is set for a 0.4% rise with the biggest decrease being -1% for councils included Anglesey, Conwy, Flintshire, Powys and Monmouthshire.

Members of Rhondda Cynon Taf’s cabinet were told that the Welsh Government’s provisional settlement, which only covers one year, has an allowance to cover the recently announced teacher’s pay award and the increase in cost of free school meals.

Chris Lee, the director for corporate and frontline services and deputy chief executive of the council, said that they were still waiting for information on grants for social care and school standards and that the general capital grant had fallen to around £11m.

He said: “It is better than we had modelled but presents the council with significant challenges in terms of preparing a balanced budget.

“Teacher’s pensions could present a significant financial risk.”

Mr Lee added that a 1% increase in council tax would generate an extra £826,000 for the council and that the council is working to identify savings and efficiencies.

Councillor Andrew Morgan, the leader of the council, said: “It is a better position than we had forecasted.

“Anything below a 2.5-3% rise is realistically a cut. We have a significant budget gap to close.”

He said there is a “huge risk” around teachers’ pensions and confirmed he and other Welsh council leaders have written to both the Welsh and UK Governments on the issue.

Cllr Morgan said they seem to get hit with something new every year including National Insurance changes, pensions and the apprenticeship levy in what he described as “below the table” cuts.

“I hope they do fully fund the teachers’ pensions issue.

“Ending austerity is in the hands of the UK Government. I am not holding my breath.

“Some authorities are running out of things to close down. I hope we don’t get to that point.”