Concerns over council’s ‘serious’ financial challenge

A council is facing a “serious and major” challenge as it stares down the barrel of a near-£40m budget black hole.

The predicted financial gap Flintshire Council needs to plug in 2025/26 was previously estimated at just under £37.8m in July.

That figure has now risen to £38.4m due to a potential increase in the levy used to pay for fire and rescue services in North Wales.

Politicians have been warned it could grow further once staff pay awards and budget pressures in social care and other departments are added.

A senior official said all portfolios could be forced to make savings of more than ten per cent to bridge the shortfall, which would have a significant impact on frontline services.

Difficult choices

Outlining the situation at a meeting held today (Thursday, 12 September), Gary Ferguson, the council’s corporate finance manager, said: “The council currently has a serious and major budget challenge to identify the solutions required that will enable us to agree a legal and balanced budget before March next year.

“The scale of historic cost reductions already taken from portfolios and beyond leaves very limited options of scale for cost reductions, and some difficult choices will need to be made.

“Unless sufficient cost reductions are identified that are achievable and deliverable, the council will not meet its statutory obligation to set a legal and balanced budget, and these options have not been identified to date.

“However, work is ongoing to determine ways that the council could balance its budget which will need to be considered in due course.”

Mr Ferguson told members of the council’s corporates resources scrutiny committee that the authority had experienced a ten per cent increase in operating costs.

However, independent analysis of the Welsh Government’s latest budget suggests that only a marginal uplift in funding for councils can be expected.

While reductions to the frequency of bin collections in Flintshire are anticipated to produce some savings, he added it would still be necessary for school budgets and other areas to be cut.

Committee chair Richard Jones said he was concerned that it could lead to some services disappearing entirely.

He said: “When our finance officer is telling us that it’s a serious and major budget position, I think we’ve got to take it seriously.

“Last year, we were looking at a £33.1m gap in July, but we could see a pathway.

“Now we’re at pretty much £40m depending on pay awards and we don’t have that with us.

“This is probably the worst situation I’ve seen since I’ve been a councillor. Sorry to be saying that, but it’s true.

“Ten per cent savings for each portfolio would be required and if we do that, that would mean service provision would probably disappear in some areas which we really don’t want.”

Councillors were told a further update on the authority’s financial position and details of any proposed cuts would be brought to them in the near future.