Council Leaders Warn of Potential Bust Without Funding Floor
Council leaders express concerns over budget pressures and funding gaps in Wales
Wales, Rhondda Cynon Taf, Council Funding, Budget Pressures, Local Authorities
Rhondda Cynon Taf: Council leaders are sounding the alarm about potential financial troubles. They’re saying that without a solid funding floor, things could get really tough.
Andrew Morgan, who leads the Rhondda Cynon Taf council, shared some serious concerns. He spoke to the finance committee and highlighted the extreme budget pressures they’re facing.
While he appreciated the £253 million boost from the Welsh Government, he pointed out that it’s just a drop in the bucket compared to the £559 million funding gap they’re looking at over the next year.
He mentioned that the funding only covers about half of what they actually need. So, local authorities are going to feel the squeeze.
As the leader of the Welsh Local Government Association, Morgan said it’s tough to explain to the public why council tax is going up while services are being cut.
He noted that many councils are planning for at least a 5% increase in council tax, which is a real headache for everyone given the rising cost of living.
When asked about the risk of councils going bankrupt, he reassured that it’s not an immediate concern but warned that it could be a problem down the line.
He also mentioned that Audit Wales has raised alarms about councils being financially unsustainable. Morgan is calling for a three-year funding plan to help them plan better.
He explained that the current system gives them only a short time to prepare budgets, which isn’t sustainable in the long run.