Caerphilly County Borough Council is facing an unprecedented financial crisis that may lead to the loss of up to 600 jobs, as warned by council leader Sean Morgan. The council needs to make £45 million in savings over the next two years, with £33 million to be saved this year alone. Contrary to claims of having £200 million in reserves, the council clarified that only £16 million is available for emergency spending.
The council attributes the budget shortfall to rising service costs outpacing Welsh Government grants, which form the majority of its funding. Sean Morgan described the financial outlook as “sombre viewing,” likening the situation to “austerity on steroids.” Measures to save £28 million over the next two years include service streamlining, expenditure reduction, and cuts.
One recent decision was to mothball the Llancaiach Fawr museum, currently subsidised with £485,000 annually. The move caused heated debate, with Cllr Morgan acknowledging the passionate atmosphere in the council chamber. While a proposal to cut the Meals Direct scheme, providing subsidised meals on wheels, was scrapped due to strong opposition.
Council leader Sean Morgan highlighted the need for tough decisions, including potential job cuts affecting around 600 full-time equivalent roles, amounting to 10% of the current workforce. Efforts will be made to minimise compulsory redundancies by exploring redeployment and early retirement options. Cllr Eluned Stenner clarified that while the council had £192 million in reserves, most of it is earmarked for specific purposes and cannot cover operational costs.
Stenner emphasised that the council’s reserves cannot sustain balanced budgets in the long term, with only £16.4 million being uncommitted. Despite the challenging situation, Cllr Morgan aims to engage with trade unions to discuss the impact on council staff. The council is committed to safeguarding essential services amidst the financial crisis, while acknowledging the difficult stance forced upon them.