Councillors in Blaenau Gwent have set their Budget for 2024/25 against a backdrop of difficult and sustained financial pressures. The Budget seeks to protect the frontline services most valued by residents and keep the Council Tax increase as one of the lowest in Wales.
The Full Council met today to set the Budget following months of careful financial planning, and after widespread engagement with residents, partners and stakeholders over potential savings and efficiencies and spending priorities.
As part of the Budget setting for 2024/25, councillors agreed a range of service cuts. You can see what was agreed here.
The Council has received an uplift in funding from the Welsh Government of 2.8%, equating to 拢3.95million, which was once again below the average for Wales. The Council warned it would be extremely challenging to set a Budget considering the funding settlement, together with well-publicised cost pressures, continuing high inflation, soaring energy and fuel costs, and increasing social care demands.
The agreed Budget includes a series of cuts from right across the authority totalling 拢6.618 million, with the remainder of the gap being funded through Reserves (拢1.5 million) and reduced cost pressures. As part of the Budget, a Council Tax increase of 4.95% was agreed and schools will receive additional funding to support specific cost pressures equating to 拢864,000. Whilst their general budgets will be cash flat in line with needing to make savings across the board, overall schools will receive a 1.6% rise in real terms.
Council Leader, Steve Thomas says:
"We鈥檝e always been transparent about our challenging financial situation, and we鈥檝e highlighted the need for difficult choices and service adjustments to achieve a balanced Budget for 2024/25. We have sought to identify savings that should least impact the services our residents most use and appreciate. This allows us to continue supporting the most vulnerable in our communities.
鈥淲e understand that any rise in Council Tax might not be welcomed, but it was inevitable considering the huge savings needed. We鈥檝e done our best to ensure this increase is as slight as possible, making it one of the lowest in Wales. Residents living in a Band B property, which accounts for most homes in the borough, will see a 拢1.35 per week increase in their Council Tax.
鈥淚n the past few weeks, we鈥檝e consulted with our residents and other stakeholders to collect their opinions on our strategies for saving and generating funds. The response to our budget survey was positive, and I want to express my gratitude to all who participated. It鈥檚 essential for individuals to participate in local democracy and the decision-making process.
鈥淲e鈥檙e living through unprecedented times in local government. Several councils in England have had to issue S114 notices聽which is effectively declaring the authorities bankrupt, and every council here in Wales has had to raid their fast-diminishing reserves to help cover their budgets for the second year in a row. As with all councils, we鈥檙e gearing up for more tough financial challenges. We must figure out how to save around 拢34 million from our budget over the next five years after already enduring a decade of cuts totalling 拢40 million.聽The future for local authorities is grim, and adequate funding for public services simply has to be a priority for the next government.
鈥淲e believe that the budget we have created is well thought-out and balanced, and I would like to thank everyone involved in this process for their hard work and dedication.鈥�