Vale of Glamorgan Council 3.1 per cent fund lift not enough

In November, leader Lis Burnett said the council is being forced into making “unpalatable” decisions due to the lack of financial support it receives from the devolved Welsh Government and the UK Government.

Despite being earmarked to receive two checks of £20 million for regeneration in Barry and at the town’s waterfront area, the council say they are facing a huge financial blackhole to plug.

In the latest announcement on the Welsh Government’s provisional budget for 2024/25, the Labour administration said they stuck to their pledge of increasing local authority finances by 3.1 per cent, however, even the mood at the Senedd was blue, with Wales’ government admitting the overall funding settlement is “not sufficient” to meet “all pressures”.

The Vale Council will receive just over £208 million in funding from the WG in 2024/25 - but the council says this amounts to  real-terms cut in its funding for the next financial year.

Cllr Burnett insists frontline services and the most vulnerable in society will be protected from the chop, however, for everyone else, the future looks bleak.

Cllr Burnett said: “(WG’s settlement) puts the council in an incredibly difficult position.  

“A real-terms cut in any circumstances would be challenging to deal with, but when demand for some of our most critical services and the cost of delivering many others is rising very quickly it means that some very difficult decisions will need to be taken.”

On the financial settlement, Rebecca Evans, minister for finance and local government, said: “Our overall funding settlement is not sufficient to meet all pressures.

“This has meant taking difficult decisions elsewhere in the budget to honour our commitment to councils last year of a 3.1 per cent rise in their funding for next year.

“I appreciate the pressures local government is facing and recognise that demand for services, along with the recent very high rates of inflation, mean local government will still need to make difficult decisions on services, efficiencies, and council tax in setting their budgets.”

The Welsh Government’s annual funding settlement makes up more than half of Vale Council’s annual budget. The rest is provided by council tax, charges for services, and funding through a proportion of business rates collected across Wales.

Leader Lis Burnett has previously said the council are being forced into 'unpalatable decisions' due to their financial settlements (Image: Vale Council)

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Cllr Burnett said the council will find a way through these difficult financial times.

Cllr Burnett said: “The council has a strong record of finding new and innovative ways to deliver our services.

“We will continue to find new ways of working to deliver on what we know matters to local residents.”

Ms Evans added: “We will continue to work closely together to face these shared challenges and strive to make the best use of the resources we have in order to make the most difference to the communities we serve.”

A six-week consultation on the provisional settlement will end on January 31, 2024.

What do you think about the council's handling of its finances? Is it wasting money, or does it need more funds? Let us know in comments, on our Facebook page, or email harry.jamshidian@newsquest.co.uk.