Councillors in Neath Port Talbot have today set out the Council’s budget plans for the next financial year.
In a report to Council, Director of Finance, Derek Davies, explained that, for the first time since local government reorganisation in 1996, Neath Port Talbot has received a negative settlement from the Welsh Assembly Government.
Neath Port Talbot has received £3½ million cash less than last year representing 1.7% of the grant.
He explained to councillors that when taking inflation and service pressures into account, there was a shortfall of £13 million in the budget.
He said, “This is the difference between what we need and what we have got – this is the toughest budget ever.”
Leader of Council, Ali Thomas, said, “As we all know, national circumstances are pretty grim at the moment and I understand the Assembly has done the best it can.
“The Cabinet has worked hard with officers over recent months to put together strategies to resolve the shortfall.
“The result is, we believe, a balanced budget where efficiencies are made across all directorates and contributions made by all concerned. Not least by the Council’s workforce through negotiations with the unions.
“We have been successful in keeping the council tax increase low at 2.9% which is below the Welsh average.”
Mr Davies spelled out the strategies agreed to ensure the budget is delivered.
The Council already has in place a five year forward financial plan which must be delivered to achieve the projected savings.
Services need to be more efficient and any waste eliminated.
An increase in council tax is inevitable as is an average 2.1% increase in the Council’s fees and charges.
A marginal impact on services is unavoidable but the intention is to find more innovative ways to deliver that service at a lower cost so that any impact is hardly noticeable.
Financial savings will also be made from the Council’s priority programmes which include the schools improvement plan and the transformation of older people’s services.
There will be a reduction in staff costs through the workforce strategy after staff agreed to a 2% pay reduction, by not filling vacant posts and an early retirement/voluntary redundancy scheme introduced.
Schools will be protected by £190,000 more than the Assembly’s requirement but overall it will still be a cash reduction and a tough time for schools.
£2 million extra funding will go into children and elderly services but there will still need to be a £4 million saving.
Councillor Thomas added, “Thanks to the goodwill of staff, £2.9 million has been saved through the workforce strategy. This means we can fulfil our commitment to the unions that there will be no compulsory redundancies.
“We are still waiting to hear about certain capital grants from the Assembly and then we can confirm the position of job security for those grant funded projects as well.”
Although capital funding has been severely hit, the Council is committed to financing the completion of the Gwyn Hall, starting the street lighting renewals programme, the £8 million Dwr y Felin teaching block and the extension at Maes Y Coed school.
The new ‘Harbour Way’ link road is also going ahead as planned.
Changes need to be made to waste collection in order to reach the Assembly’s tonnage targets and to avoid paying heavy fines. Food waste and most recyclables will still be collected weekly but the general residue refuse will move to fortnightly collections in line with other councils.
There is a withdrawal of funding for discretionary education awards, uniform grants from year 10 as well as a 1.7% reduction in grants to voluntary groups.
Other changes include car entry charges to be introduced at the Gnoll Country Park and a charge for depositing building rubble at the civic amenity site.
The lower house at Caewern Residential Home, beds previously paid for, but now no longer required, by Swansea Council, will close but respite care is still available at the upper house.
Unfortunately, there is no funding spare to cover the cost of a taxi survey.
A refuse charge of £10 for picking up bulky items will save the Council £80,000 a year.
The Leader added, “This package is one that is fair and balanced and will have a marginal impact on services – what we will have is better services delivered in a different way.
“We have worked hard to ensure that we are not closing leisure centres, not closing libraries, nor turning off street lights and have succeeded in avoiding mass compulsory redundancies.”
