Council set to post £2.6 million surplus on last year’s budget

Elgan Hearn – Local democracy reporter

A council is set to post a surplus of just under 2.6 million on last year’s budget.

At a meeting of Blaenau Gwent County Borough Council’s Corporate Governance & Resources Scrutiny Committee on Thursday, September 25 councillors will be told that the provisional out-turn is £2.589 million on a budget of £190.286 million for 2024/2025.

After money is moved around internally to “specific” council reserves, this surplus drops down to £2.304 million.

But the position is over £3.8 million better than expected, as the budget which was set back in March 2024 had been estimated to need £1.5 million from “specific reserves” to balance the books.

This use of reserves is not needed now.

‘Pressures’

The report explains how the budget has done far better than the council expected.

The report said: “The council received £1.2 million in grant funding to support additional NJC (National Joint Council – the negotiating body for local government staff and teachers) pay pressures.

“Of this £700,000 was allocated to schools and £500,000 to the contingency budget within the Corporate Services Portfolio.

“To support local authorities, manage in-year cost pressures, the Welsh Government awarded supplementary grant funding in March 2025.

“The council received £1.012 million as a portion of which was allocated to cover storm-related costs, and to address pressures within homelessness and housing services.”

The report goes on to outline the financial performance of the council’s services.

Corporate Services reported a surplus of £782,000, which is partly attributed to managing to achieve a “higher-than-expected” Council Tax collection rate, as well a “modest” increase in the numbers that pay it, brought in an extra £380,000 to Blaenau Gwent coffers.

Deficits

Social Services managed to post a surplus of £150,000 despite deficits totalling £1.1 million posted within the department.

Children’s Services posted a deficit £300,00 which was ‘primarily due” to the need for more special guardianship orders and placements.

The use of agency staff, legal fees and “increased complexity” and number of domiciliary care packages, caused a deficit of £800,000 to be posted in Adult Services.

The Economy department posted a surplus of £1.065 million, which was largely due to £300,000 increased rental income from industrial units which was the result of buying a “large” unit at Waun-y-Pound Industrial Estate.

The department also made a further £600,000 by using grant funding from the UK Government’s Shared Prosperity Fund to “support service delivery.”

The Environment department also managed to post a surplus of £164,000.

Expectations

This was due to the Waste Services achieving a £440,000 surplus due to the budgeted cost pressures of transferring Silent Valley Waste Services into the council not cropping up.

The Catering department posted a £350,000 which was due to the Welsh Government specific grant for universal free school meals exceeding budget expectations.

The surpluses in these two departments offset deficit in others including Housing, Winter Maintenance and Street Lighting.

Comments from the committee will be added to the report before it goes before senior councillors at a Cabinet meeting next month.