The Vale of Glamorgan Council currently faces many financial challenges after a decade of austerity and the significant impact of Covid-19.
Many steps have already been taken to reduce costs, such as charging for services, delivering services in partnership and collaborating with other councils. However, the cost of delivering services is still rising and causing more pressure than in previous years. This year's cost increase is projected to be £27m and this is having a major effect on budget planning, as not all will be able to be met.
The Council's budget comes from three sources:
- Council Tax paid by residents (33% of the total budget).
- Business Rates paid by businesses (18%).
- Financial grants from Welsh Government (49%).
Though we don't yet know what the Welsh Government settlement will be, even the best case scenario will still leave a big shortfall. This means that council tax payments from residents will need to increase so that we can keep delivering services.
In the last year, additional funding has been given to us by Welsh Government to help with the costs of the coronavirus pandemic, but that is not expected to continue. Other factors are also expected to negatively affect the Council’s financial position.
The Vale also has an aging population and an increasing number of children with additional needs. These groups typically rely more heavily on our services.