William Eichler 01 October 2024

Neath Port Talbot Council warns of £23m ‘black hole’

Neath Port Talbot Council warns of £23m ‘black hole’  image
Image: Leighton Collins / Shutterstock.com.

Neath Port Talbot Council is forecasting a £23m gap in its budget on top of what is predicted to be a ‘seismic economic shock’ after the closure of Tata Steel’s final furnace.

Council leader Steve Hunt wrote to the Welsh and UK Governments in August appealing for ‘fair funding’ to allow local councils to run their vital services.

He said the council had a ‘strong track record’ of sound financial management but warned the prospect of further funding cuts would result in ‘deep cuts’ to local services and job losses.

The Welsh Government has advised councils to plan for no increase in the revenue support grant for 2025/26.

The closure of the final furnace operating at Tata Steel's plant in Port Talbot is also predicted to lead to nearly 3,000 job losses.

Speaking ahead of a council meeting tomorrow (2 October), Cllr Simon Knoyle, the council’s Cabinet Member for Finance, Performance and Social Justice, warned they had an ‘enormous budget gap to address.’

He continued: ‘We know our residents are continuing to be affected by the cost-of-living crisis and obviously the jobs that are being lost in our local economy as part of Tata’s transition are having a big impact.

‘Reducing services, increasing charges and cutting secure jobs isn’t where we want to be but I’m afraid we have little choice unless the UK and Welsh Governments invest in the vital public services all councils are struggling to maintain.’

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