Message from the Leader and Chief Executive on the budget

13 January 2023

Dear colleagues,

As you may be aware, the Council has published its report on the budget today as we enter the latest phase of planning for the next financial year. That report will be considered by Cabinet on Thursday and a four-week period of public consultation with residents will follow.

Through that consultation, residents will have the opportunity to share their views on proposals before they are put to Scrutiny Committees and finalised at a meeting of Full Council in March.

The 2023/24 budget-setting process is proving particularly challenging as the Council looks to address a significant funding shortfall.

A higher-than-predicted settlement from Welsh Government has eased the pressure, but there remains a deficit of more than £9 million to make up.

It is hoped that this can be bridged with savings and careful use of reserves.

A suggested Council Tax rise of 4.9 per cent will be considered by Cabinet on Thursday when that report on the Authority’s financial planning is discussed.

That increase is expected to be similar to or lower than most other Welsh Local Authorities and would mean Vale residents continue to pay less than the average cost of Council Tax in Wales.

However, despite the funding boost from Welsh Government, the Authority remains in a difficult position.

Like other Local Authorities, businesses and individuals, the Council has been significantly impacted by the cost-of-living crisis.

A volatile economic environment has seen energy prices soar alongside climbing inflation and interest rates, among other cost pressures.

That is a key reason behind the Council’s current position, which Members and officers are working hard to resolve.

We have no doubt that they will succeed in that task, though some difficult decisions lie ahead as the Authority strives to continue to deliver first-rate services for its residents.

Both Cabinet and the Senior Leadership Team will continue to look for new and innovative ways to overcome these challenges and the views of the community will play a key role in deciding the way forward.

Of paramount importance is protecting the essential services relied upon by our most vulnerable residents.

Providing social care, community facilities and free school meals remain an absolute necessity.

The Council is also committed to key pledges and targets around waste and recycling, social care, education, housing, active travel, open spaces, investing in local businesses and mitigating the impacts of climate change.

We will continue to build and renovate schools and maintain our Council-house building programme, providing high-quality properties for some of our residents most in need.

Encouraging active travel also remains a priority as we work to increase walking and cycling routes across the county. This objective aligns with our Project Zero commitment to become carbon neutral by 2030.

We also want to invest in facilities for the wellbeing of our residents, including our children. This includes parks and play areas, as well as our schools, whilst at the same time helping to create local jobs and continuing important regeneration work within our communities.

We will need to review how we do things to transform the way we deliver services and to make savings. We have an excellent track record of this, having run a successful Reshaping Programme for many years.  The reality is, we now need more of the same and we need the same innovation and enthusiasm to enable us to continue to transform the way we deliver vital services.

There are challenges ahead, but also a strong determination to overcome them. We remain confident that this organisation and, crucially, all our colleagues, will continue to do the very best for those who rely upon our services.

Thank you once again for your continued efforts in sometimes testing circumstances.

That commitment is very much appreciated.

Diolch yn fawr,

Lis and Rob.