Cash-strapped council faces ‘difficult decisions’ following below average funding announcement

Richard Evans, local democracy reporter

The leader of a cash-strapped council has admitted it faces “difficult decisions” balancing its budget next year after the Welsh Government announced another below average settlement, resulting in a shortfall estimated at £19m.

According to the latest figures, Conwy will receive just a 3.7% increase in the annual sum the authority receives from Welsh Government.

More council tax rises are now likely with further cuts to frontline services, following the Welsh Government announcing its Local Government Provisional Settlement.

The percentage increase is the indicative rise the council is likely to receive.

£6.1 billion

With Welsh Government pledging an extra £6.1bn for the 22 Welsh authorities, Conwy County Council is one of many councils who will likely receive less than the 4.3% national average.

This figure compares to Denbighshire ’s 4.7% increase and South Wales councils such as Newport (5.6%), Cardiff (5.3%), Merthyr Tydfil (5.1%), and Blaenau Gwent (4.8%) all looking like they will receive significantly more.

Denbighshire joins Swansea, Torfaen, and Rhondda Cynon Taf, who all will likely receive a 4.7% increase. Conwy received the joint lowest amount in Wales last year, together with Gwynedd.

Shortfall

Conwy’s leader Cllr Charlie McCoubrey said: “The settlement from Welsh Government accounts for about 70% of the money we’ll have available to spend on services next year.

“As it currently stands, Conwy will receive a 3.7% increase in funding from Welsh Government. This is below the Wales average of 4.3%.

“And whilst any increase is very welcome, it won’t be sufficient to meet the funding shortfall that the council faces as a result of increased demand for services, national pay awards, price inflation, energy, and fuel increases.

“We’re currently estimating a resource shortfall in the region of £19 million before any reimbursement of our additional Employers National Insurance contributions, which is not included in the provisional settlement announced today (Wednesday).

“As Welsh Government have highlighted today, councils will again have difficult decisions to take to set a balance budget for 2025/26.”

Report

He added: “Our finance team will now work on the provisional figures to produce a detailed report for councillors to discuss in January.

“We’ll face a significant challenge complying with our legal duty to set a balanced budget for 2025/2026, and we’ll have difficult decisions to make, but I’d like to thank all the officers and councillors that have contributed to this work.”