Laura Sharman Monday, April 19, 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

Admission Appeals Support Officer

Wakefield Council
Grade 5 SCP 8 £26,824 - SCP 11 £28,142
Are you passionate about making a difference to our citizens and the district that they reside in? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Advanced Social Work Practitioner

Wakefield Council
Grade 12 SCP 40 £51,356 - SCP 43 £54,495
We are seeking an experienced and motivated Advanced Practitioner Social Worker (APSW) Wakefield, West Yorkshire
Recuriter: Wakefield Council

Youth Worker x 2

Wakefield Council
£12,790.00 - £12,959.50 JNC 5-6
The Early Intervention and Prevention Service work with many partners in Wakefield, as part of Wakefield Families Together. Wakefield, West Yorkshire
Recuriter: Wakefield Council

Cleaner

North Yorkshire Council
£13.28 per hour
Are you looking for a cleaning role with great benefits? Please note this role is Term Time Only plus 2 weeks. Selby, North Yorkshire
Recuriter: North Yorkshire Council

Business Development Manager

North Yorkshire Council
£42,839 - £47,181 per annum
NYES is a leader in delivering high-quality traded services predominantly into the Education sector. Northallerton, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner