Council predicts up to £30 million shortfall for next financial year
A senior Conwy Councillor has estimated the local authority could be facing a budget shortfall of between £20 – £30 million over the next financial year.
Councillors will discuss the financial outlook for next year when they meet this week to plan the timetable for setting the 2024/25 budget.
The full council will meet on 29 February 2024 to finalise and agree the budget and Council Tax for nexy year.
Uncertainties
Speaking ahead of the Special Finance and Resources Overview and Scrutiny Committee meeting, Cllr Mike Priestley, Conwy’s Cabinet Member for Finance, said: “The report sets out our planned timetable and governance arrangements for the coming months as we work to set the budget for 2024/25.
“At this stage, there are some financial uncertainties, so we have had to make assumptions about the main aspects of the budget, such as price inflation, demand for services, pay awards, and grant funding from the Welsh Government.
“Based on these assumptions, the current outlook for 2024/25 points towards a potential resource shortfall of between £20M and £30M subject to the variables
“Councillors will need to consider how to bridge the gap in the Council’s funding shortfall. Essentially the Council will have no choice but to reduce its expenditure in a number of areas which is likely to impact on the level of services and raise additional income.”
Councillors will receive regular updates and opportunities to debate the budget over the coming months.
Welsh Government is expected to confirm its final local government settlement in early March, but has indicated a 3.06% increase across Wales. However, the Welsh First Minister recently announced that Welsh Government is facing its toughest financial situation since devolution, therefore it’s unclear whether the allocations to local government will be revisited by the UK or Welsh Governments.
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Conwy do not have a good history of keeping to budgets. They have been given 18% of what was Gwynedd about 20 years ago. Councils should leave property development to private companies. The council members should be made responsibility for debt as per Roman law. Such a law would keep out the amateur? In simple terms the debt is £30 million and the building is worth far less than that.
Meanwhile the ratepayers will pay and less spent on what council should spend on.
Same old story every year. Poor councils struggling, yet they can find the cash to pay five and six figure salaries to the top leeches with their “paid for by the taxpayer” pensions. Try getting rid of some “comfortable in their jobs” white collar workers who have outlived their usefulness.
That town hall is some building, it says a lot about the self-importance of those who commissioned it, very Victorian in attitude.
It would look not out of place (but out of place) on Rhosneigr beach front, if you see what I mean…
two places that are full of colonists – Cyngor Conwy a Rhosneigr
Whilst each council has to take responsibility for its own management, remember that all but the most loyal councils in the UK have had their budgets slashed by central government.
Which is less than what was spent on the building in the picture, which the Council doesn’t even own and will have to rent from an English (of course) company, for £1.5 million per year. Gwarthus!