Laura Sharman 19 April 2021

Welsh councils face £178m funding gap next year

Welsh councils face £178m funding gap next year image

Welsh local authorities will face a funding gap of £178m next year due to post-pandemic pressures, a new report has found.

Analysis by Cardiff University’s Wales Governance Centre warns this could rise to £607m next year if the Welsh Government decides to redirect budget resources to fund the projected legacy costs of COVID-19 on the NHS.

The report finds social services will account for 55% of all local authority spending pressures by 2025/26.

Cian Siôn, a researcher on the Wales Fiscal Analysis project, said: 'Even though the block grant is set to grow in real terms over the next five years, growing demand for services, including social care, and significant post-pandemic pressures combine to create a challenging outlook for the Welsh and local authority budgets.

'This challenge kicks in immediately with a substantial funding gap next year, based on current UK Government spending plans.'

The report also reveals that council tax now accounts for 5.4% of the total tax take in Wales, compared to 4.3% in England.

Mr Siôn added: ‘Our analysis suggests that above-inflation increases to council tax here to stay. In our model, we assume a 4.5% annual increase to council tax bills from 2022−23 to 2025−26, and even this is not sufficient to meet funding pressures in full.

’This strengthens the case for revisiting the way the local taxation system operates in Wales. A policy which pivots around inflation-busting council tax increases every year is an unsustainable way of funding local authorities in the long-term.’

SIGN UP
For your free daily news bulletin
Highways jobs

Waste Minimisation & Sustainability Supervisor

Essex County Council
Up to £16.2600 per hour
Waste Minimisation & Sustainability Supervisor - Braintree District Council Braintree, Essex Full-Time, Temporary 6-month Contract £16.26 PAYE / £20.8 England, Essex, Braintree
Recuriter: Essex County Council

Land Charges Assistant - Rochford District Council

Essex County Council
Up to £15.0000 per hour
Land Charges Assistant - Rochford District Council Rochford, Essex Full-Time, Temporary 3-Month Contract - 37 Hours per week£15.00 PAYE / £19.23 Umbre England, Essex, Rochford
Recuriter: Essex County Council

Public Facilities Security Operative - Tendring

Essex County Council
Up to £12.8500 per hour
Public Facilities Security Operative - Tendring District Council Brightlingsea - Walton-on-the-Naze, Essex Part-Time, Temporary £12.85 PAYE / £16.48 U England, Essex
Recuriter: Essex County Council

Mechanical & Electrical (M&E) Compliance Officer

Essex County Council
Up to £450.0000 per day
Mechanical & Electrical (M&E) Compliance Officer - Harlow Council Location
Recuriter: Essex County Council

Principal Surveyor

Durham County Council
Grade 14
Durham County Council
Recuriter: Durham County Council
Linkedin Banner