THE BUDGET position of a Welsh council is more positive than previously expected but challenges remain, councillors have said.
Rhondda Cynon Taf (RCT)’s cabinet received an update on the current budget position for next year at a meeting on Monday, December 15.
The council had previously been looking at a budget gap for 2026/2027 of £22.4m but when taking into account additional funding from the provisional Welsh Government settlement (£8.09m) and the updated tax base (£198,000), the gap reduces to £14.2m.
These figures are based on a modelled 4% council tax rise and it is now for cabinet to consider and recommend the council tax level for next year.
The provisional settlement included a 2.7% increase in funding for Welsh councils and a 2.9% increase for RCT specifically.
The council has seen a £463,000 increase in its general capital funding to £15.9m.
After the cabinet report had been published, news came of a budget deal being reached by Welsh Government which includes additional funding of £112.8m for local government.
This updates the provisional settlement to an average all Wales increase of 4.5% with RCT’s increase at this same level.
Barrie Davies, deputy chief executive and director of corporate resources at RCT Council, said this provides additional resource of £8.8m compared to the original provisional settlement.
A draft budget strategy will be presented to cabinet in January along with phase one of the budget consultation.
Mr Davies said there’s no indication of future year funding levels rom Welsh Government but that the outlook for public sector finance remains “extremely challenging.”
Councillor Ros Davis, cabinet member for resources, said it remains very challenging but that it’s better than had possibly been anticipated.
She said: “This is a well run council and I know we will do our best to meet the challenges ahead.”
Councillor Andrew Morgan, leader of the council, said it’s still going to be challenging because of the cost pressures across local government but the second provisional figure is a much improved one from the first time around.
He said it’s a much more positive position but he mentioned inflation and pay pressures and particularly growing demand in complex areas whether it’s schools and ALN or social care and children’s services saying the pressures would be there next year no doubt.
Deputy leader Councillor Maureen Webber said the position was “much improved” but the challenges are still facing them particularly with ALN provision and in social services.
“I think moving forward we know we will be mindful of that.”
