The closure of a care home in Rhondda Cynon Taf (RCT) is expected to significantly reduce the council’s budget gap for the following year by more than £1 million. The decision to shut down Cae Glas care home in Hawthorn as approved by the council cabinet is projected to save £1.16 million off the upcoming budget shortfall. The updated budget proposals for 2025-26 are due to be presented to the cabinet on February 19, with a 4.5% council tax increase being considered as part of the plan to address the remaining budget deficit of £6.82 million.
The Welsh Government’s provisional settlement for Rhondda Cynon Taf includes a 4.8% increase, which alongside updated budget requirements and existing budget reduction measures of £10.28 million, left a significant budget gap to be bridged. The proposed 4.5% rise in council tax is anticipated to contribute £549,000 towards closing the budget gap. The main objective of the budget plan is to fully fund schools to cover all their financial pressures, with an additional £2 million set to be allocated to the individual schools budget (ISB).
Efficiency measures and budget cuts totalling £5.75 million have been identified, with savings from general efficiencies, capital charges, and service restructuring contributing towards reducing the budget shortfall. The plan also includes a 5% standard increase in fees and charges in certain areas to generate income for the council. These measures are set to bring the budget gap down to £727,000, with the remaining shortfall expected to be covered by funds from the transition funding reserve.
The revised budget proposals aim to ensure operational delivery without compromising frontline services, with a focus on maintaining financial reserves for future budget strategies. The council’s overall revenue budget for 2025-26 is projected to be £668.12 million, reflecting the council’s efforts to address financial challenges and uphold service standards.
Rhondda Cynon Taf Council’s approach towards managing the budget shortfall demonstrates a balance between cost-saving measures and strategic investments in key services such as education. The decision to close a care home as part of the budget plan underscores the council’s commitment to financial sustainability while prioritising essential services for the community.
As Rhondda Cynon Taf navigates the evolving financial landscape, the council’s budget decisions reflect a proactive stance towards long-term financial stability and service provision. By addressing the budget gap through a combination of revenue generation, efficiency measures, and strategic allocations, the council aims to safeguard essential services and meet the needs of its residents in the upcoming fiscal year.