Cardiff Council is facing a significant financial challenge as the expected budget gap for the upcoming year is anticipated to be more than double the size it was last year. According to a wellbeing report released by the council, they are bracing for a £49m budget shortfall. The report highlights increasing demands on services for children, young people, and adult social care. The need for emergency and temporary accommodation is also on the rise, with approximately 8,000 individuals currently on the council housing waiting list.
Council leader, Councillor Huw Thomas, acknowledged the ongoing hurdles resulting from the pandemic recovery, inflation, and increased interest rates affecting various council services. To address these financial pressures, the council initiated a review to identify savings of £100m over the next four years. This review aims to ensure essential services are maintained while navigating the challenges ahead. The council had to bridge a £30m budget gap in the current financial year, implementing measures such as a 6% council tax increase, higher fees for services like burials and school meals, and adjustments to waste collection frequency.
Despite financial strains, there were positive indicators in the council’s wellbeing report, including progress in education, social care, and housing delivery. Notable achievements include the completion of 1,200 new homes through the council’s building programme, improved placements for children in foster care, and a reduction in the social care staff vacancy rate. Councillor Thomas emphasised the importance of building on the achievements made post-pandemic and addressing the forthcoming challenges effectively.
Looking ahead, the projected budget gap for the 2025/26 financial year surpasses the previous year’s shortfall, standing at £49m compared to £24m in 2023/24. As Cardiff Council navigates these financial hurdles, strategies to streamline services and ensure financial stability will be crucial. The council’s commitment to prioritising the needs of Cardiff residents underscores their dedication to delivering essential services despite the fiscal constraints.
For more updates on Cardiff news, readers can subscribe to the newsletter on Wales Online. Cardiff Council’s proactive approach to financial challenges reflects a commitment to sustainable service delivery amidst evolving economic conditions.