Councillors concerned that uncertainty will result in restructuring services
THE Vale of Glamorgan council is facing a £12.8 million deficit next year due to Covid-19, according to budget proposals.
The Welsh Government’s Local Authority Emergency Hardship Grant has covered £6 million of the council’s costs up until September 2020.
However, the Vale council faces “considerable uncertainty” around the Welsh Government’s financial support, with costs rising across key departments.
“A substantial proportion of the balance will need to be found through the reshaping of council services,” it reports.
The council plans to raise funds by increasing council tax by 4.9% but still anticipates a £12.8 million shortfall due to “additional expenditure but also from a loss of income”.
This is largely due to the mounting costs of handling the coronavirus pandemic, combined with the loss of income from car parks and public amenities and new costs including:
- Additional PPE equipment
- New signs installed in town centres.
However, the council has also had to expand existing services including homeless support and mental wellbeing services.
“We anticipate that [mental wellbeing] is the area that will see most significant pressure over the coming 18 months as a direct consequence of Covid,” reports the directorate of Social Services.
The Welsh Government is expected to provide additional financial support.
But in the meantime, Vale of Glamorgan council will need to focus on increasing its savings.
Currently, the council has set a savings target of £10.63 million over the next two years. But its target for this year is substantially lower – just £247k.
Vale council estimates its savings in 2022 will be between £6.813 million and £13.667 million. This is assuming that council tax increases relieve the pressure of increased costs.
The council’s proposed 4.9% tax increase would raise around £3.89 million this year.
Although the council broke even last year, Learning & Skills spent significantly more than its budget with additional learning needs pushing them £755,000 over budget.
Social Services were also under pressure last year due to costs associated with placing children in care homes.
However, the Welsh Government stepped in with a £500,000 grant.
The additional cost of Covid-related pressures means Social Services will likely dominate the council’s overspend for the next few years.
