Council to consider reducing council tax increase
The Vale of Glamorgan Council’s Cabinet will consider reducing its proposed rise in council tax by one per cent at a meeting next week.
This comes after a period of consultation with residents and an increase in the funding it will receive from Welsh Government as revealed in its recently-published final budget.
New plans to be discussed by the Authority’s political leadership include a suggested council tax climb of 5.9 per cent instead of the 6.9 per cent initially consulted upon.
If approved, that will form part of the draft budget to be debated at a meeting of all Councillors in March.
Welsh Government recently announced a change to how it funds Local Authorities, meaning all 22 in Wales will receive at least 3.8 per cent more money than last year.
This equates to an extra £1.1 million for the Vale.
Cllr Lis Burnett, Leader of the Vale of Glamorgan Council, said: “We have consistently made Welsh Government aware of our misgivings with its funding formula, which sees the Vale of Glamorgan receive one of the lowest financial settlements in Wales.
“I’m pleased that those representations have been considered and that our funding will increase from 3.3 per cent to 3.8 per cent compared to last year.
“I said the last time our draft budget proposals were considered by the Council’s Cabinet, it was with a heavy heart that the recommendation was for a council tax increase of 6.9 per cent. That was not something I was comfortable with and not where we wanted to be as an administration.
“This additional funding offers the chance to significantly reduce that initially proposed increase.
“I believe it is right that we use this money for that purpose, rather than reduce savings targets or make the budget easier to manage, as this reflects the priorities of our residents who expressed concern over council tax increases in our budget consultation. It is only right that we respond to that concern.”
Welsh Government’s financial settlement accounts for around two thirds of the Council’s overall funding, with the rest made up of council tax contributions and a share of business rates from across Wales.
The proposed rise in council tax is expected to be smaller than that introduced by most other Welsh Local Authorities, meaning Vale residents will continue to pay considerably less than the average charged in Wales.
Like many councils across England and Wales, the Vale of Glamorgan Council is in an extremely challenging financial position as demand for certain critical services continues to grow rapidly, alongside the cost of delivering many other services.
All this means that, in spite the of the additional funding, the organisation is facing a budget deficit of nearly £9 million for the next financial year, so significant savings still need to be made to bring expenditure in line with income.
These will be achieved through changes to the way some services are delivered, new innovative ways of operating to drive efficiency and the introduction of some charges.
Seventy one per cent of the budget has been allocated for schools and social care, with spending in these areas increasing by £8.647 million and £10.243 million respectively.
This is a larger proportion than ever before and part of the Council’s financial strategy to protect the services used by the Vale’s most vulnerable citizens.
Cllr Burnett added: “We have been operating within incredibly challenging financial constraints for several years. Despite this, we have a track record of continuing to deliver our most vital services to a very high standard.
“Prioritising investment in social care in recent years means that the Vale has the fewest delays in hospital discharge in Wales and we are able to source home care for those who need it in an average of three days.
“Continued investment in our schools means our pupils learn in some of the most modern facilities and those that need additional support can access excellent provision.
“We will continue to invest in our children to make sure they are given the very best platform for success and maintain support for those in the greatest need.”
Having been considered by scrutiny committees and undergone public consultation, the Council’s final budget will be debated at a meeting of Cabinet on March 6 before being considered by Full Council on March 10.