Message from Leader and Chief Executive on the budget

Dear colleagues,

We wanted to update you on the final stage of the budget-setting process, which took place on Monday night.

Budget proposals were voted through at a meeting of Full Council and will come into effect from the start of the new financial year on April 1.

That follows full consideration of all comments received following a period of public consultation as well as debate by all of the Council’s scrutiny committees.

We have reached this stage after months of hard work by colleagues across the organisation.  We would, however, like to specifically mention Matt Bowmer, Gemma Jones and many others in the Finance and Strategic Leadership teams.  It is the hard work of this colleagues that has got us to this stage and these efforts are very much appreciated.

As you will know from previous updates, despite a better-than-expected settlement from Welsh Government, the Council remains in a challenging financial position largely because of the cost-of-living-crisis as prices, inflation and interest rates have all risen dramatically.

The Council’s main source of income is a settlement from Welsh Government, which, including a contribution from pooled business rates, provides around 69 per cent of the £294 million it needs to deliver all services. Thirty-one per cent comes from Council Tax.

The budget is designed to protect schools and support services for the most vulnerable residents during these difficult times.

It includes an increase in Council Tax, which has been kept to a minimum as we appreciate the pressures facing households at the moment.

Council Tax will rise by 4.9 per cent, which is expected to be a smaller increase than that introduced by other Welsh Local Authorities and should mean Vale residents continue to pay less than the average charged in Wales.

Some difficult decisions needed to be made about service provision as there simply isn’t the money to maintain all of these at current levels, while there will also be an increase in the charges for some non-essential services.

These measures are necessary for the Council to bridge a £9.7 million financial shortfall.

Savings that add up to £7.4 million, along with the careful short-term use of Council surplus money, known as reserves, will help bridge the funding gap.

Again, a huge thank you to everyone who has got us to this point. We remain confident that, despite these challenging times, all our colleagues across the organisation will continue to do their very best for our residents and communities.

Diolch yn fawr iawn,

Lis and Rob.