Council update on financial strategy
The Vale of Glamorgan Council has provided an update on its financial strategy as the organisation continues to navigate a challenging economic environment.
The budget for this financial year was agreed in March, with the Authority looking to bridge a £9.7 million funding shortfall.
This was largely brought about by rising energy prices, inflation and interest rates, while provision for an ageing population and growing number of school pupils with Additional Learning Needs is also increasing costs.
Savings of £7.4 million and the careful use of reserves will help address the funding gap in 2023/24, but the factors behind it continue to affect longer-term financial planning.
A report recently presented to the Council’s Cabinet indicates that the funding gap for the next financial year is forecast to be £6.43 million.
The Authority is facing cost pressures of £17.02 million, with only £10.59 million anticipated from Welsh Government, Council Tax and reserve funds.
Savings proposals across all areas of Council responsibility will be considered in October and November, all of which will be the subject of public participation before any decisions are made.
A balanced budget will go before a meeting of Full Council in March.
Cllr Lis Burnett, Leader of the Vale of Glamorgan Council, said: “The Council remains in an extremely difficult financial position. That means we must make tough decisions as we look to best allocate the funding available.
“What remains an absolute priority is maintaining the services relied upon by our most vulnerable residents.
“We will make sure our children, elderly and those with additional needs are properly looked after and residents will form an important part of the decision-making process.
“Despite these challenging circumstances, we have not lost our ambition and will continue to explore new and innovative ways to invest in our communities.
“Our Future Transformation Program maintains ongoing work to reshape the way in which services are delivered, ensuring they operate as efficiently as possible, while also investigating creative ways to best serve our residents.”