Councillors at Neath Port Talbot met this week (March 3rd) to set the council tax for the coming year.
Director of Finance, Derek Davies, presented a report to Council outlining the financial challenges that lie ahead and how the economic climate has made this year’s budget the most difficult in the history of the county borough.
Councillors voted to approve the recommended increase of 3.8% which means the majority of residents paying 9p a day extra.
Mr Davies told councillors that the below inflation, disappointing 1.7% increase in revenue support grant from the Welsh Assembly has resulted in a £7 million shortfall in the budget.
This means to balance the books, savings have to be made by every department. A workforce strategy is currently out to consultation to reduce the number of employees over the next four years, efficiency savings are being pursued and improving the way services are delivered are all being progressed in order to reduce costs.
The Council has decided to pass on the full 1.7% increase in the Revenue Support Grant to its schools.
The Council’s general reserves will be £4 million for the coming financial year and as they are well below recommended audit levels they will need to be increased gradually over the coming years to a more acceptable level.
As part of the budget announcement, the Council has set out its capital programme for 2010/11 totalling £36 million for projects across the county borough.
These include £3 million for the school improvement plan, the continuation of the rebuilding works of the Gwyn Hall, £1.045 million for urban streets improvements and match funding for convergence schemes and almost £1 million on new social services facilities.
Thanking officers for their efforts in preparing a fair and balanced budget against a background of competing demands, Council Leader, Ali Thomas, said, “This budget provides the foundation for sustaining and improving public services in the county borough particularly for the most disadvantaged and vulnerable in our communities whilst at the same time making the necessary efficiencies to meet the financial challenges that lie ahead.”
