Council considers more cuts to ease predicted £21m budget deficit
Alec Doyle, local democracy reporter
A cash strapped council could face a financial black hole of £21 million next year – even if council tax was hiked by 5%.
According to the latest budget forecast – calculated using a 5% increase in council tax for 2026/27- would barely scratch the surface of the funding gap the council must bridge.
No final decision has been made on the council tax level for next year but councillors and officers are refusing to leave any stone unturned to try to manage the deficit – with the cabinet member for finance Cllr Paul Johnson highlighting specific concerns within scrutiny committees that school spending may once more be cut.
Budget strategy
The authority’s medium-term budget strategy and report says that even if council tax rises by another 5% – and the Revenue Support Grant from Welsh Government goes up 2% – Flintshire County Council will still be facing an operating deficit of £15.41m for 2026/27.
Public sector pay, which went up 3.2% this year and will rise 4% next April and teachers pay, which increased 4% earlier this month and will rise 4% again next September, are helping drive the budget pressures, as is a shortfall in funding provided by Welsh Government to cover the National Insurance rise and general inflation.
In total the council’s remaining budget pressures – which under review were now all deemed a priority – totalled £27.45m.
2% uplift
If the Welsh Government delivers on its promise of a 2% uplift in the Revenue Support Grant that will add £5.5m to Flintshire’s budget while a council tax increase of 5% would provide another £6.5m.
That would leave the council with £15.45m to find. But those figures do not include the impact of social care spending, which is facing a projected overspend of £6.5m by the end of this year – a cost which would increase the total budget deficit to £21.45m. That cost – a statutory responsibility which Flintshire has little control over – could also rise between now and April.
Presenting the report to Flintshire County Council’s Cabinet, Deputy Leader of the Council and Cabinet Member for Finance and Social Value, Cllr Paul Johnson, said: “We are seeing the cost of living crisis reflected in our own budget.
“Although we keep making savings the pressure just continues to build. An essential review of the council’s pay modelling to address recruitment and retention has £2m allocated but will remain under review.
“Meanwhile a shortfall of £193,000 from UK Government to cover the National Insurance rise must be absorbed into next year’s budget.
“Officers are developing a range of budget-balancing options which members will be engaged to brief into committee discussions. CROSC (Corporate Resources Overview and Scrutiny Committee) has already expressed concerns about the implications if school budgets are reduced again this year.
“Every option must be considered no matter how difficult. The financial impact on our residents is going to be real. Many are already struggling and our decisions must reflect that reality.
“But our priority must also be to protect vital services, especially those that support the most vulnerable.
“This is a serious moment, but it is a moment to stand up and be straight with the people of Flintshire and to lead.”
Concerning
Gary Ferguson, Flintshire County Council’s Corporate Finance Manager, said: “It is a very concerning position.
“A separate piece of work is being undertaken on the projected social services overspend and that could increase the amount we need to find for next year.
“One piece of positive news is that we expect the provisional settlement (the revenue support grant) to be announced earlier this year – around October rather than December. That will give us more planning time deal with whatever that tells us.”
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Depressing, no easy way out. Increase council tax and play into the hands of reform. Reducing services is moving local local government further into the realm of perpetual managed decline, and councils are already at bare bones.
Our local school laid off two teachers this year, replaced with one new graduate.
It’s depressing reading these pages and how little effort is made by readers into discussing these aspects of politics. But some ‘scandal’ involving reform draws tens of comments!
It’s largely because of how tax is handled in the UK. Councils are basically not permitted to become self sustaining, they must rely on central government. Most councils are extremely reluctant to hold a referendum calling for increased council tax, of course it’s rare the alternative is offered on the same ballot, when in reality that’s the only other choice offered.
For me, this problem would be best served via direct democracy.
That would be nice. The last referendum didn’t go well. There is so much misinformation in council spending. Most people think they pay 2k per year to get their bins emptied!
I am peed off with councils constantly pleading poverty. Their tales of woe are wearing a bit thin now. If they cannot do the job they should move over and let someone competent take over. I have said this many times before and will keep on about it as long as they keep wailing about their hardships. We hear about having to cut services but we don’t hear of any redundancies so what are the employees who usually do those cut services do all day? The councils who moan the most employ approximately nine to ten thousand people or even… Read more »
You don’t hear of redundancies because this is often expensive. What they do is stop hiring (or rather reduce hiring) and let staff retire or seek other jobs. Sometimes staff will be put on performance reports and removed that way as well. Long term sick is a contractual matter, staff are employed on a contract with various terms in order to attract staff to do the job. There are many many reasons why someone might be on long term sick, it’s also typically what you get with an aging workforce. In short, sick pay is priced in from the start.… Read more »
Really!!! I assume you are a council worker and I can understand why you are being so protective of a completely broken system. I get my information from very reliable sources. The trouble with some council employees is that they have been employed all their lives in only that job. They think it is the norm in all industry and have no idea what it is to work in the private sector where bosses watch every penny spent and any drop in the market affecting their products means redundancies…..no mercy!! I was made redundant three times during my working life… Read more »
I take it that you haven’t considered the possibility that nobody could “do the job” without adequate funds.
One thing we can all be sure of is that a bunch of Reform-newbies with no previous experience of running a lemonade stand, let alone a council, will do an even worse job.
Just look at Leicestershire!
It does look like cuts are necessary. However! I would put this to the constituents. Outline fully the situation and offer two remedial outcomes. Council tax increase beyond 5% (hopefully progressive so those with more expensive properties pay more.) Public service cuts (focusing on management, consultants and agency workers first) The public will vote for what they want. For me, this is the only way to solve such a tough issue and by having an ability to have a say it makes the whole thing a much easier pill to swallow either way. Don’t be afraid of asking the opinion… Read more »