An update on the budget

Hi everyone,

After the budget for 2025/26 was agreed at a meeting of Full Council last night, we wanted to update you on what that means for the organisation moving forward.

We have spoken a lot about the challenges associated with setting a balanced budget.

It is a simple fact that costs are rising at a faster rate than funding, so the Council is facing a financial shortfall of nearly £9 million.

That means we cannot continue to deliver services in the same way if the necessary savings are to be made.

There will be changes to some provision, the careful use of the Council’s financial reserves and the introduction of some charges to cover the shortfall.

Increasingly, we will work with community groups and look for new innovative business models to keep delivering for our residents.

This is the focus of our cost-cutting approach and is an area in which the Council has a proven track record of success. That fact alone gives us confidence and, notwithstanding the seriousness of the situation, we believe there is reason for optimism.

Vale 2030, our new Corporate Plan, which sets out what we will deliver over the next five years, and our Reshaping Programme offer real hope of a bright future, and we would again ask everyone to embrace those pieces of work.

Linked closely to these key documents, and following feedback from our Panel Performance Assessment, colleagues in Resources are also putting together a Signalling Change Plan.

This will contain examples of how the organisation is evolving and how it will continue to adapt and change in response to the challenges that lie ahead.

The spring series of Management Development Sessions, which will take place later this month, will be held to recognise previous successes and the new challenges we face.

All Chief Officers will also be meeting soon to consider Vale 2030, the commitments within it and what we must do differently to realise them.

The Council’s Strategic Leadership Team (SLT) are to hold a dedicated session around signalling change and the future Reshaping roadmap later this month, while work is also underway to refresh Council branding in keeping with this new approach.

Work has started in collaboration with Elected Members to look at how scrutiny committees operate, with further engagement sessions planned over the coming weeks.

Looking ahead, though there will be changes, our ambition to be the best Council we can be remains, one that continues to serve its residents to the very peak of its ability.

We are committed to our council house building programme to meet the need for quality modern homes and our Project Zero work to become carbon neutral by 2030.

There are also exciting projects in the pipeline that can improve employment, training and leisure opportunities in the Vale. These include the creation of a marina, watersports centre and park at Barry Waterfront, alongside proposals to rent space in the Council’s nearby Dock Office.

Prioritising investment in Social Care in recent years means that the Vale has the fewest delays in hospital discharge in Wales.

Sustained 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.

The vast majority of spending next year – around 71 per cent – will go towards schools and Social Services, where we find many of the greatest cost pressures. Those costs associated with adult and children’s Social Care, provision for children with Additional Learning Needs (ALNs) and school transport have all risen sharpy over recent years and continue to climb.

The Council has taken action to increase spending in these areas 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.
Welsh Government’s financial settlement, which has been reducing in real terms for more than decade, makes up two thirds of the Council’s funding, with the rest coming from council tax and a share of business rates from across Wales.

After the Council received a slight increase in funding from Welsh Government, it was possible to reduce the increase in council tax from 6.9 per cent to 5.9 per cent.

This reflects feedback from residents provided in the budget consultation and emphasises the fact that their views and best interests will always be at the heart of decision making.

We know that staff also repeatedly put our citizens first throughout the course of their work.

It is that dedication and selfless approach that gives us real hope for the future.

You have proved time and again that with such commitment we can achieve truly remarkable things.

We are sure that trend will continue.

Thank you very much for your efforts.

Diolch yn fawr iawn,

Lis and Rob