Provisional 6.6% uplift from Welsh Government for RCT nowhere near enough to bridge Budget gap – bleak financial outlooks means tough decisions required

Local Authorities across Wales are still facing extraordinary budget challenges, despite the Welsh Government providing additional funding in the Provisional Local Government Settlement for 2023-24.

The Tory U.K. Government’s Autumn Statement was a missed opportunity to provide vital public services with the funding they desperately need, and the new Westminster Government’s disdain for public organisations was further highlighted by the removal of the Energy Bill Relief Scheme for public sector organisations.

This means that Councils will have to foot the bill for the eyewatering rises in energy costs – which in RCT amount to 355% – as well as addressing significant inflationary pressures and pay award costs. Even after careful management of its finances, the Council is facing a budget gap of £38.3m – which is almost double of that faced during the worst years of austerity.

RCT’s Labour Council Leader, Councillor Andrew Morgan OBE, said: “The U.K. Government had an opportunity to invest in public services and help avert this crisis during the recent Autumn Statement and chose not to take it.

“Without serious and meaningful support from Westminster, the effects of 12 years of Tory austerity means that the road is quickly running out for local authorities to be able to provide the essential services that our residents expect and rely on.

“The Welsh Government only has limited resources that need to be balanced across a number of priorities and, despite their best efforts in protecting local government, it must be remembered that only the UK Government has all the levers to get us out of this crisis, and it’s about time they started to use them.”