News

Welsh council working to tackle £4.3m budget shortfall

20 Oct 2026 3 minute read

(L) Cllr Steve Thomas – Labour – represents the Tredegar ward (R) Cllr Jules Gardner – Labour who represents Brynmawr. Image: Blaenau Gwent County Borough Council

Elgan Hearn, Local Democracy Reporter

Senior councillors have been assured that work to plug a £4.3 million black hole in a council’s budget for this year is being done.

At a meeting of Blaenau Gwent County Borough Council’s Labour Cabinet on Monday, October 19, councillors received an update on how the budget was performing during the first quarter of the year, from April to the end of June.

At that point, the council budget was predicted to have a £4.33 million deficit by the end of the financial year.

The forecast is that the council will spend £217.77 million on its 2026/27 budget, having allocated £213.43 million for running council services.

The report explains that issues have appeared in the council’s budget due to financial overspends in schools and Social Services, which are being partly offset by other departments underspending.

Children’s Social Services are reporting a forecast deficit of £2.3 million, Adult Social Services are also predicting a £1.48 million overspend, while schools are forecasting a deficit of £2.3 million.

Council leader Cllr Steve Thomas (Tredegar) said: “The forecast overspend at the end of quarter one is clearly a significant figure that we must take seriously.

“But equally important is that we put this position into context.

“Firstly, it is the forecast based on the position at the end of June, not the final position for the year, of course.

“We are several months on, and actions have already been taken, including tighter controls on recruitment and non-essential spending, which will let us improve as the year progresses.”

He added that the financial pressures being seen in Social Services and schools were being seen across the country and not just in Blaenau Gwent.

Cllr Thomas added that these are “demand-led” services that the council is legally obliged to run.

Cllr Thomas said: “Costs are being increasingly driven by the complexity of people’s needs. These are national issues that need national solutions.

“There is some welcome news in the last week, with Welsh Labour securing an agreement with the Welsh Government for an extra £60 million investment into Additional Learning Needs (ALN) across Wales.

“While this is subject to the supplementary budget being approved, it is a positive step and recognition of the financial pressures facing schools and councils, but more needs to be done.”

Cllr Thomas warned that the council cannot continually rely on using reserves to plug the budget gaps.

Director of corporate services and section 151 officer Rhian Hayden said: “I want to assure you we are working to identify all the opportunities we can to reduce the pressures.

“I am anticipating an improved position when you see the next forecast, which I believe will be at your next meeting.

“Directors and heads of services are undertaking detailed reviews of their areas to identify opportunities to reduce costs, improve control and mitigate financial pressures for this year and for 2027/2028.”

Cabinet member for adults and communities Jules Gardner (Brynmawr) told his colleagues that adult social services chiefs had already identified potential savings of £700,000.

Cllr Gardner added: “It’s not just Welsh councils. Councils in England are suffering, especially with schools and Social Services overspends. It’s a very difficult time.”

Councillors went on to approve the report.

Support our Nation today

For the price of a cup of coffee a month you can help us create an independent, not-for-profit, national news service for the people of Wales, by the people of Wales.