William Eichler 30 September 2021

Auditors question financial sustainability of Welsh councils

Auditors question financial sustainability of Welsh councils image

Auditors have questioned the sustainability of local authorities in Wales despite the improved financial position Welsh councils have experienced as a result of pandemic support.

The Welsh government allocated £660m additional funding to help councils cover their loss in income and their extra expenditure over 2020-21. Public borrowing also increased due to the pandemic.

According to Audit Wales, this extra short-term funding means that councils’ financial positions have improved, the costs of COVID-19 have been mitigated, and councils have not generally relied on their reserves to balance their 2020-21 budgets.

However, prior to the pandemic councils were facing a financial squeeze and the auditors warned that the 22 Welsh local authorities face uncertainty over future funding levels.

The core funding from the Welsh government has fallen by 17% over the past decade. Councils have partly offset that cut by a 35% increase in money raised through council tax, but overall council spending fell by 8% in the last decade.

Audit Wales warned that the demand for local services is rising, while budgets across the public sector are set to remain tight. They concluded that councils will struggle to manage these pressures while also recovering from the pandemic and responding to the global challenge of climate change.

Auditor General, Adrian Crompton said: ‘The pandemic has highlighted the importance of local government services and local government plays a key part in the recovery of the pandemic.

‘Though councils have been supported financially through the pandemic, they need to implement strategies to improve their longer-term financial sustainability to ensure they are able to provide essential services that keep communities safe and healthy.’

Photo: Ceri Breeze / Shutterstock.com

SIGN UP
For your free daily news bulletin
Highways jobs

Chief Executive

National Association of Local Councils
£competitive
We are looking for an exceptional senior leader with a strong record of leading change London (Greater)
Recuriter: National Association of Local Councils

Visitor Experience and Events Assistant

North Yorkshire Council
£13.28 - £13.92 per hour
We are looking for friendly front of house staff able to work flexibly including evenings and weekends Skipton, North Yorkshire
Recuriter: North Yorkshire Council

Supervising Social Worker, Mid Essex Fostering Team

Essex County Council
£38487.00 - £51834.00 per annum
Supervising Social Worker, Mid Essex Fostering TeamFixed Term/ Secondment up to 2 years, Full Time £38,487 to £51,834 Per Annum Location
Recuriter: Essex County Council

Kitchen Porter

North Yorkshire Council
£13.28 per hour
We are now looking for new members of our F&B team working under our Head Chef. Scarborough, North Yorkshire
Recuriter: North Yorkshire Council

Joiner

North Yorkshire Council
£30,023 to £39,481 per annum
As a Joiner within our Housing Standards Construction team, your core responsibility will be to carry out major improvements, adaptations. Harrogate, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner