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 last 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 an extensive public consultation, consideration by scrutiny committees and engagement with other stakeholders, including trade unions.

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 the Finance and Strategic Leadership teams. It is the dedication of these colleagues that has got us to this stage and those efforts are very much appreciated.

As you will know from previous updates, we have faced an unprecedented financial challenge to balance this budget.

In simple terms, costs are increasing at a much faster rate than funding making it impossible to continue as we are.

This is due in part to soaring energy prices, inflation and interest rates.

On top of this, a growing number of people require critical Council services as the Vale has an aging population and increasing number of Children with Additional Learning Needs.

All this means the Council is having to manage a significant ‘real terms’ funding cut.

We will receive just under £209 million from Welsh Government for the next financial year, a figure that accounts for half our income. The rest is made up of council tax, charges for services and a share of business rates from across Wales.

From the outset, looking after the most vulnerable members of our communities - children, the elderly and those with additional needs - has been an absolute priority.

With that in mind, we’re delighted that, despite the obstacles, there have been funding increases for both Social Services and Learning and Skills.

There will be a 13 per cent increase across both Adult and Child Services and a five per cent rise for Education.

However, that money must come from other areas and, after it is deducted, there is just 25 per cent of the budget left for all other provision.

Overall, the Council was facing financial pressures totalling £38 million and, following initial cost-cutting steps, £7.7 million-worth of savings are needed to bring expenditure in line with income.

They will be delivered through charges for certain services, a council tax rise of 6.7 per cent, reduced expenditure in specific areas and forward-thinking, creative ways to generate income.

The council tax increase is significantly smaller than that being introduced by many other Welsh Local Authorities and will mean Vale residents continue to pay less than the average charged in Wales.

There is no denying that this is a difficult situation as there simply isn’t the money to maintain all services at current levels.

However, we know from experience exactly how much this group of staff can achieve in testing circumstances and have no doubt colleagues will again rise to the challenge.

Though we have had to make difficult decisions, there is also an opportunity to find new and innovative ways to deliver our services and better serve our residents.

This transformative approach is an area in which this organisation has a proven track record of success.

We have every confidence that will continue as we strive to put the Council in a stronger position than ever before.

Diolch yn fawr iawn

Lis and Rob.