These are unprecedented times and we have all felt the impact of the soaring cost-of-living. In the six weeks since Liz Truss became Prime Minister the UK has lurched from one economic crisis to another. So it is no surprise that councils up and down Wales, from Monmouthshire to Flintshire, are announcing financial shortfalls.
Here we have identified an £8.8 million gap in our current year’s budget. There are many reasons for this and as an administration, we believe transparency and respect is owed to our residents. We have local anomalies and the current budget we inherited already anticipated a £13 million shortfall in the medium term when it was set by the previous administration.
We are experiencing pressures which are way outside of our control, and that of the Welsh government.
They come from one place: Westminster. True, there are some international elements at play, too: OPEC+ offers low oil production, driving up energy costs.
But our plight has some uniquely British peculiarities, too. ONS figures show that we stand on the brink of recession with the slowest growth of any major economy in the world outside Russia.
The Prime Minister and the former Chancellor’s response to pending economic doldrums was an ill-conceived and hopelessly executed mini-budget, with unfunded tax cuts for the wealthiest and no coherent economic policy.
And still the threat of public spending cuts loom large over a nation where public services have been underfunded for more than a decade.
Choices made on public service funding (and cuts) by Westminster are translated into funding-famine for devolved governments. Consequently, Wales’ funding settlement is cut. We are also affected by inflation, caused by decisions at a UK level.
The stark reality of this is that over the coming years, the Welsh government’s budget is £4 billion less.
Locally, we are working to address the shortfall responsibly. Our focus is on key services and prioritising stability and delivery. As a council with a large area and a mixed population, we are used to an agile, innovative approach to provide stable, responsible, management of services, resources and finance.
We will concentrate on providing the services our communities need and value.
To this end, we are committed to honest and open consultation with residents on the budget so we can hear what is important to residents and communities as we prepare to make challenging choices.