Posted on: Tuesday 1 November 2022
A report into Torfaen Council's budget for the next financial year, 2023/24, has highlighted a potential funding gap of £12.5 million.
The report, to be considered by the Council's Cross-Cutting Resources and Business Overview and Scrutiny Committee next week, forecasts the estimate net spend across all service areas in 2023-2024 at £228.7m.
The projection highlights an initial funding challenge of £19million, before estimated Welsh Government and Council Tax funding is taken into account, which would reduce it to £12.5 million.
Councillors will be advised at the meeting that the projected costs have taken a number of major factors into account, including significant inflationary pressures, increased energy costs, and pay increases for staff.
Councillor Sue Morgan, Executive Member for Resources, said: "These figures are very sobering and represent a significant financial challenge as difficult as anything we have seen during the years of austerity.
"Thanks to the Council's prudent financial management, our current financial position is relatively strong. We will do everything we can to protect our frontline services as far as possible but difficult choices lie ahead.
“But like households we are facing inflationary pressures that are putting pressure on our finances. Councillors will now consider options to address the funding gap and we would also like to hear what you think. You can contribute to the discussion via our online community hub."
To take part in the consultation, visit Get Involved Torfaen.
You can also tell us what you think about current service provision in our resident survey and the plans for the next five years in our developing County Plan consultation.
In March, councillors agreed to limit the increase to next year's Council Tax to 1.95% which will remain in place.
The Council is required to complete and approve next year's budget by 10 March 2023.
The Cross-Cutting Resources and Business Overview and Scrutiny Committee will meet at 2pm on Tuesday 8 November. You can watch the meeting live here.
Click here to view Budget Scrutiny report 202324 - November 2022.