Rhondda Cynon Taf Council is now facing a budget gap of just over £38m with a 6.6% increase in funding from Welsh Government planned for next year. An extraordinary full council meeting was held on Thursday, December 15, for councillors to receive an update on the council’s financial position following the announcement of the provisional local government settlement for 2023/2024.
The revised budget gap stands at £38.32m, which includes an extra £13.89m as a result of the increased settlement but also £15.74m in updates to the council’s base budget requirements compared to the budget gap that was previously included in the council’s medium term financial plan of £36.47m. The average increase in funding for councils across Wales is set to be 7.9% and the final settlement is expected in early March 2023.
The council’s capital funding allocation has increased by £2.28m having been cut by £2.16m last year with £30m more for Welsh councils as a whole. Council director of finance Barrie Davies compared the figures to a comparable year during austerity saying that in 2015/2016 when the council received a 3.7% cut in funding they were facing a budget gap of £21.8m so he said it’s a totally different ball game even compared to the austerity years.
