Council facing £22m budget shortfall

Richard Evans Local Democracy Reporter

A Welsh council is facing a budget shortfall of more than £22 million for the next financial year, according to a report that will be debated by councillors next week.

Conwy County Borough Council’s finance and resources overview and scrutiny committee will discuss the budget-setting framework on Monday (September 1) before cabinet considers the plans later in the month.

The council’s “business planning framework” sets out how the council will prepare its budget for 2026/27, requiring services to submit business cases for both revenue and capital spending.

But a financial forecast included in the report points to a resource shortfall of £22.026m, prior to any increase in overall funding.

The figure is not yet final and awaits various “unknowns” being factored in, such as pay awards.

Difficult decisions

But after three years of slashing frontline services and increasing council tax by around 10%, the report warns the council could face more difficult decisions.

“The overall process must not put more pressure on the financial sustainability of the council,” the report states, warning that higher costs could equate to further cuts and council tax increases.

“Clearly the overall budgetary equation means that the higher the value of supported business cases and other pressures, e.g. pay, the greater the amount of budget reductions, or increase in council tax, that will be required to set a balanced budget.”

Conwy won’t know its exact position until the provisional Local Government Settlement – the annual sum of money paid to the authority by Welsh Government – is announced in November.

Despite this, an uplift of 2% has been indicated by Welsh Government, which would be an increase of £4.5m – the position being described within the report as a “very challenging financial outlook”.

The committee will meet on Monday at Conwy’s Coed Pella HQ