Local authorities in Wales are set to be engulfed by a "financial firestorm" with services including schools, libraries, waste collection and care homes all facing huge cuts, council leaders have warned. Soaring inflation, combined with rising energy costs and "unprecedented" demand for services have eaten into council budgets, with Welsh government ministers warning that the country faces a "new damaging era of austerity", which could threaten jobs, businesses and public services.
Councils have warned that they face a budget gap of more than £500 million in the year ahead, with the Welsh Government’s budget now worth up to £4 billion less in real terms over the next three years than it was last year. Get the latest news from WalesOnline sent straight to your inbox for free by signing up to our newsletters.
These warnings come after chancellor Jeremy Hunt said UK government departments must redouble their efforts to find areas of savings to help restore economic stability across the country. He also warned some areas of spending would be cut to fill the hole created in UK public finances by the fallout from September's disastrous mini-budget, along with the other major pressures facing the UK economy.
