Rhondda Cynon Taf Council has announced a £6.8 million budget gap for the next financial year—yet, at the same time, it has spent almost £9 million on a tea garden in Pontypridd, right next to a public park that already offers seating and refreshments. Meanwhile, our roads are crumbling with potholes, waste services have been cut, and residents are once again facing a council tax increase—this time by 4.7%.
Almost all council services are outsourced to private contractors, with consultants pocketing millions of taxpayers’ money. With rising costs and questionable spending priorities, is it time for a change in government?
https://www.taxpayersalliance.com/war_on_waste_findings_archive
The 8 members of the cabinet have given their final consideration to the budget-setting process for 2025/26, following the second phase of public consultation. They are now recommending that the draft strategy is agreed by Elected Members at the upcoming Full Council meeting in March.
The Council’s budget-setting process for 2025/26, which has been an ongoing programme of work throughout the year, has had to address an initial funding gap of £35.7 million. This level of budget gap was projected by officers during their initial financial modelling, as reported within the Medium Term Financial Plan in September 2024. This position reflected the continuing financial challenges across Local Government, including cost of living pressures remaining very high.
Early work during the year on budget reduction measures resulted in £10.28 million of permanent savings being identified and reported by officers in November 2024 – while the more positive provisional Local Government settlement in December indicated that Rhondda Cynon Taf will receive a 4.8% funding increase next year. In parallel, work continued to update base budget requirements in light of on-going pressures across services, and this was reported to Members in January 2025.
With all of these factors taken into account, the remaining budget gap for next year was £6.8 million – the position upon which the draft Budget Strategy has been developed. Key elements of the strategy have been included at the bottom of this news item. Phase two of the budget consultation took place from January 23 to February 7, 2025, and provided the opportunity for residents and stakeholders to give their views on the proposals within the draft strategy.
On Wednesday, February 19, Cabinet considered the feedback received from more than 400 people who engaged with this second phase of consultation. A summary of the responses received from the range of activities undertaken is included as an Appendix to Wednesday’s Cabinet report.
During Wednesday’s meeting, a 4.7% increase to Council Tax was proposed, which is likely to be the second-lowest increase in Wales. Properties in Rhondda Cynon Taf pay almost £300 less Council Tax on average per dwelling, when compared to the Welsh average.
The funding raised would increase the permanent resources available to the Council to prepare proactively and respond to major weather events, while at the same time reducing reliance on one-off funding in setting the budget for next year. This amendment was agreed by Cabinet Members.
Cabinet agreed the draft Budget Strategy with the above amendment, and now recommends that it is approved by Full Council at the meeting on Wednesday, March 5. Elected Members will set the final 2025/26 budget at that meeting.
Councillor Andrew Morgan OBE, Leader of Rhondda Cynon Taf Council, said: “Following the second phase of public consultation, Cabinet Members have now agreed the details of the draft Budget Strategy – and recommended that Elected Members approve it on March 5. This would ensure the Council sets a legally-balanced budget for 2025/26, within the required timeframe.
“This year’s budget-setting process has again been a thorough undertaking by officers. The £35.7 million budget gap reported in September showed the scale of the financial challenge being faced – and this is on the back of the Council facing its largest-ever budget gaps in each of the last two years. We are grateful to Welsh Government for recognising this and taking steps to protect our key public services with extra funding. This has given us some short-term breathing space, though we recognise that the medium term outlook is still challenging.
“Our responsible financial approach has helped us reach the current position – undertaking financial modelling and identifying efficiency savings early in the budget-setting process. More than £10 million in budget reduction measures were factored in as early as November, allowing further work to bring forward new savings of £5.75 million. We recognise that the on-going identification and delivery of efficiency savings on this scale is increasingly difficult year-on-year – with £29 million of such savings made across this year and last. It has again been an extraordinary effort to identify this level of saving without impacting on our essential and valued frontline services. I have to recognise the efforts of all our staff in being able to deliver such measures and at such scale.
“The draft Budget Strategy for 2025/26 has many positive elements – for example, fully-funding our schools with an extra allocation of £14 million for next year, and further increasing our permanent resources to prepare for major weather events. Our proposal for Fees and Charges would ensure they remain competitive when compared with other councils, while the council tax rise of 4.7% will still likely be one of the lowest in Wales. Welsh Government’s local government settlement has ensured that, despite 14 years of austerity and the ongoing cost of living challenges, we’ve been able to protect key services as much as possible.
“I’d like to thank residents who took part in our annual budget consultation processes, with more than 1,100 responses across the two phases. Cabinet Members have considered all of the valuable feedback that was received, and it was used as a key factor in their decision-making throughout the process.”
Key elements of the draft Budget Strategy
Funding schools has always been a priority, even when the Council faces unprecedented financial challenges. The Medium Term Financial Plan modelled an uplift based on schools’ pay and non-pay related inflationary requirements being funded – with schools themselves needing to absorb any other pressures. However, the draft Budget Strategy proposes to cover all budget pressures, fully-funding our schools with an overall increase in funding of £14m (7%).
Officers have identified efficiency savings throughout the year, which have been factored in. This includes over £10 million in budget reduction measures that were reported in November, and an extra £5.75 million of measures identified more recently. This has been achieved through general efficiency measures, updated capital charges and interest receivable budget levels, and service restructurings. This focused work has protected our frontline services.
The strategy proposes that all Fees and Charges are subject to a standard 5% increase (with some subject to specific treatment and others frozen), recognising the large rise in the Council’s cost base which continues to increase the level of subsidy the Council is providing.
The Council always takes a responsible approach to setting council tax levels, balancing the need to protect key services and residents’ ability to pay. Every council in Wales will need to raise council tax next year, and the proposed increase for Rhondda Cynon Taf is 4.7%. This is still likely to be one of the lowest increases in Wales.
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