Welsh councils are bracing for severe budget cuts and tax hikes amid a £559m shortfall
Wrexham: Welsh councils are in a tough spot, facing a massive £559 million budget shortfall next year. This could mean a council tax hike of up to 26% or nearly 14,000 job losses. Mark Pritchard, the leader of Wrexham council, laid it all out in a recent committee meeting.
He mentioned that while the Welsh Government’s funding has improved slightly, it’s still not enough. Pritchard said, “We’ve got no other option here,” highlighting the tough choices ahead, like service cuts and layoffs.
During his talk with the Senedd’s local government committee, he expressed mixed feelings about the funding boost. Sure, it’s better than before, but it’s still inadequate. He pointed out that the Welsh Government needs to step up and provide proper funding.
Pritchard didn’t hold back when discussing the struggles in areas like adult social care and children’s services. Even with an extra £25 million from the council, they’re still facing serious challenges. He warned that job losses could reach the thousands across Wales, and bankruptcy is a real threat.
He said, “We’re on the edge, and unless the money comes, there will be serious consequences.” Adding to the stress, there’s a looming £109 million cost from rising national insurance contributions, and he’s pushing for clarity on that before June.
Mary Ann Brocklesby, the Labour leader of Monmouthshire council, echoed these concerns. She talked about the ongoing financial struggles after 14 years of austerity, especially in social care and education. She said the resources just aren’t there to meet the growing demands.
Brocklesby mentioned that without the proposed funding increase, they could face widespread job cuts and service reductions. Gary Pritchard from the Isle of Anglesey council also painted a grim picture, saying there’s nothing left to cut after years of tightening the belt.
He estimated that the council could face an internal cost of around £4 million due to the UK Government’s decision to raise national insurance contributions. There’s also a lot of uncertainty about reimbursements for outsourced services, which adds to the confusion.
Jane Gebbie, deputy leader of Bridgend council, highlighted the financial strain, noting an additional £44 million cost for care services that the UK Treasury isn’t covering. She expressed relief that they didn’t receive a cash-flat settlement for the upcoming year.
Gebbie pointed out that local government staff numbers have dropped by 40% since 2010, and they’re not looking to make any redundancies due to recruitment issues. She contrasted the funding increase with the pay offer to workers, saying it’s clear they won’t have enough to pay staff fairly.
She concluded by stressing the need for realism in what local government can provide, saying, “We don’t deliver gold-standard services in local government anymore.”
