The Council Leader has commented on Welsh Government’s provisional Local Government Settlement for 2025/26 – which indicates that Rhondda Cynon Taf will receive an important funding increase for next year.
Welsh Government published its draft Budget on Tuesday, December 10, in which it announced an extra £1.5bn funding for public services – while it also indicated that Welsh councils would receive an overall funding increase of 4.3% in the provisional Local Government Settlement for 2025/26.
Specific details relating to the settlement were subsequently published on Wednesday, December 11, and it has indicated that Rhondda Cynon Taf will receive an important funding uplift of 4.7% for next year.
The settlement will be a key factor for officers to set the Council’s own draft Budget for 2025/26, alongside the feedback received from the public in phase one of the budget consultation, which is concluding this week (December 12).
Councillor Andrew Morgan OBE, Leader of Rhondda Cynon Taf Council, said: “Tuesday’s draft Budget contains many positive aspects for people right across Wales. It puts forward an extra £600m for health and social care, that is much-needed to alleviate pressures on the NHS – as well as extra funding across every government department. More funding to repair and monitor coal tips was also included, alongside new legislation to improve the safety of disused coal sites, to benefit former mining communities like many of our own.
“The provisional Local Government Settlement which followed on Wednesday has indicated a 4.7% increase in funding for Rhondda Cynon Taf for 2025/26, which is a very fair and positive outcome under the backdrop of huge financial pressures faced across the public sector.
“However, while Welsh Government has taken important steps to protect key services that we rely upon, making available extra funding that will make a real difference to residents, the draft Budget is the first following 14 years of public sector austerity – the lasting effects of which cannot easily be undone.
“Combined with the continually high cost of living and huge demand across services like social care, all councils in Wales will continue to face very difficult financial challenges in the short and medium term. While we welcome the provisional budget increase for Rhondda Cynon Taf, we will still face a budget gap for 2025/26 and will need to make difficult decisions to meet this.
“Officers will soon provide an update to Cabinet on the process of setting our draft Budget, while taking into account the favourable settlement from Welsh Government and the feedback during the first part of our public consultation.”
In September 2024, the three-year Medium Term Financial Plan provided the context for work towards setting next year’s budget – and officers modelled a scenario which included a cash-flat settlement. The resultant Budget gap for 2025/26 was £35.7 million, rising to £91.8 million across the next three years.
In November 2024, Officers provided an update on the Council’s early work to identify and deliver budget reducing measures, enabling early savings to be made. The total of these budget reduction measures amounted to £10.28 million, which included more than £7.1 million in general efficiency measures.
Phase one of the Council’s annual budget consultation started on September 31, focusing on efficiency savings and priority investment areas. It is ending this week on December 12. Phase two of the consultation process will focus specifically on the Council’s draft Budget once finalised in the New Year.
