Council Considers 4.5% Council Tax Increase in Rhondda Cynon Taf
Residents in Rhondda Cynon Taf could potentially face a 4.5% hike in council tax as the council strives to manage its budget effectively. The local council has outlined its budget proposals for the upcoming financial year of 2025/2026, which are set to be presented to the cabinet on January 22. This increase is projected to contribute £549,000 additional income compared to the previously modelled 4% rise. The council aims to strike a balance between generating revenue and avoiding excessive tax hikes, all while addressing the looming budget gap of £6.82 million.
With the Welsh Government provisionally allocating a 4.8% increase, resulting in an extra £29.24 million in funding, coupled with initial budget cuts and revised budget requirements, Rhondda Cynon Taf is confronted with a significant budget shortfall. The proposed budget aims to fully fund schools, with an additional allocation of £2 million to cover all school pressures. This move would increase the schools budget by 5.6%, amounting to £11.2 million for the following year.
In efforts to streamline operations, the council is contemplating changes to its elderly residential care homes, potentially closing down Cae Glas care home in Hawthorn and Ferndale House in Ferndale, with anticipated annual savings of £2 million. Moreover, a 5% standard increase in fees and charges is being proposed to offset rising costs and reduce subsidy levels, which could generate an additional £633,000 in income for the council.
Efficiency savings worth £5.75 million have been identified, encompassing various initiatives like general efficiencies, capital charges, interest receivable, and service restructuring. These measures aim to improve operational effectiveness without significantly impacting frontline services. When factoring in the efficiencies, increased funding for schools, proposed council tax rise, and additional revenue from fees and charges, the budget gap shrinks to £1.89 million, pending a final decision on residential care home modifications.
Historically, the council has utilised its transition funding reserve as part of its budget strategy, currently standing at £4.72 million following replenishment in 2024/2025. However, given the ongoing financial challenges, the council intends to exercise caution by minimising the use of this reserve to safeguard future budget continuity. The cabinet will deliberate on how to address the budgetary needs in light of proposed measures and decisions on residential care accommodation and transition fund utilisation.
By adopting a strategic financial approach and pursuing a balanced budget, Rhondda Cynon Taf Council aims to sustain essential services while meeting fiscal obligations. The forthcoming cabinet meeting on January 22 will play a crucial role in shaping the council’s financial path for the upcoming year, laying the groundwork for continued community support and sustainable governance.
As local authorities navigate fiscal pressures and seek innovative solutions to financial challenges, the residents of Rhondda Cynon Taf remain central to the council’s decision-making process. The proposed budget adjustments signify a concerted effort to prioritise service delivery, fiscal responsibility, and sustainable financial management in the face of evolving economic landscapes.