{"id":84712,"date":"2024-03-14T17:09:00","date_gmt":"2024-03-14T17:09:00","guid":{"rendered":"https:\/\/cardiffjournalism.co.uk\/thecardiffian\/?p=84712"},"modified":"2024-06-10T11:21:29","modified_gmt":"2024-06-10T10:21:29","slug":"welsh-councils-less-likely-to-go-bankrupt-than-english-councils-says-cardiffs-budget-expert","status":"publish","type":"post","link":"https:\/\/cardiffjournalism.co.uk\/thecardiffian\/2024\/03\/14\/welsh-councils-less-likely-to-go-bankrupt-than-english-councils-says-cardiffs-budget-expert\/","title":{"rendered":"‘Welsh councils less likely to go bankrupt than English councils’, says Cardiff’s budget expert"},"content":{"rendered":"\n

Councillor Chris Weaver is the person tasked with balancing the books in Wales’ capital city – which faces a \u00a330.5m deficit<\/h4>\n\n\n\n

WELSH councils are less likely to go bankrupt than their English counterparts because of their closer relationship to central government, says the man responsible for Cardiff Council’s budget. <\/p>\n\n\n\n

Councillor Chris Weaver, the Cabinet Member for Finance, Modernisation and Performance, said the \u201chonest relationship\u201d and higher central funding from the Welsh Government has helped them stay afloat when some English councils are collapisng. <\/p>\n\n\n\n

Birmingham City Council<\/a> went bust last year due to a variety of reasons, including equal pay claims of up to \u00a3760m.<\/p>\n\n\n\n

The current challenging economic situation has impacted councils across the UK. However, Welsh councils like Cardiff\u2019s, which has to fill a \u00a330.5m budget hole, are more resilient, according to Coun. Weaver.<\/p>\n\n\n\n

\u201cEnglish local authorities have had central government funding cut by more,\u201d said Coun. Weaver. <\/p>\n\n\n\n

\u201cI think the closer relationship with the government here in Wales between local authorities and local government means that we can plan well.<\/p>\n\n\n\n

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We’re not in quite as bad a state as some councils are, particularly as we’ve seen [in] councils in England.\u201d<\/p>\nCouncillor Chris Weaver<\/cite><\/blockquote>\n<\/div>\n\n\n\n

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\u201cWe do still have some resilience in our financial planning. <\/p>\n\n\n\n

“We’re not in quite as bad a state as some councils are, particularly as we’ve seen [in] councils in England.\u201d<\/p>\n\n\n\n

Coun. Weaver was recently in charge of Cardiff Council\u2019s 2024\/25 budget<\/a> which includes cuts to some services and a 6% council tax hike to avoid the same fate as Birmingham – which has raised council tax by 21%.<\/p>\n<\/div>\n<\/div>\n\n\n\n

Despite receiving a higher level of central government funding than their counterparts in England, councils across Wales are still facing significant economic challenges due to increasing demand on services, inflationary pressures, the rising cost of materials for buildings and roads and the impact of Covid-19, which is still being felt.<\/p>\n\n\n\n

Coun. Weaver, who joined the Labour cabinet in 2017 when Huw Thomas took over as leader, said this year has been particularly challenging as the shortfall – the \u00a330.5m budget hole – is bigger than usual, saying: \u201cWe had to make more difficult decisions, more cutbacks.<\/p>\n\n\n\n

\u201cThere have been some years where we’ve been able to find a bit of extra growth and that’s really exciting, because you’re putting extra money into things that are really going to make a difference.<\/p>\n\n\n\n

\u201cYou don’t want to come into politics to activate cuts.<\/p>\n\n\n\n

\u201cIt is difficult to be the person who has to put together the budget that sometimes makes for those cuts or asks people to pay more through their council tax.\u201d<\/p>\n\n\n\n

Council tax in Cardiff has increased by 6%, which is the city’s biggest increase in 20 years.<\/p>\n\n\n\n

\u201cWithout raising council tax, we just wouldn’t be able to safeguard some of the services that are important to our residents,\u201d Coun. Weaver said of the higher-than-previously-modelled hike in council tax in the new budget. <\/p>\n\n\n\n