“Huge task” ahead with budget shortfall of nearly £10m expected over next two years

A budget shortfall of almost £10 million is in the pipeline for the next two years, with the local authority warning of s the “scale of the financial challenge” ahead.

Wrexham Council has already made cuts of £63 million in recent years, resulting in the loss and reduction of some services and more recently an increase of 5.5 per cent in council tax.

Looking ahead to 2020/21 to 2021/22 things are looking to remain bleak financially, with estimates that Wrexham Council will face a projected shortfall of £9.8 million.

In an executive board report outlining the timescale for this year’s budget process, it is noted that the budget process must consider stopping discretionary and other services, efficiencies and raising income and fees.

It also warns that whilst Wrexham has one of the lowest council tax levels, there could be further increases on the horizon as the council looks to balance its books.

The report states: “Realistically, unless the UK Chancellor’s Spring Statement or the UK Government Spending Review announces increases in resources then the Council needs to plan early for cuts/savings at this level, or, considers the possibility of raising income.

“The other major factor in the financial resilience of local authorities, is the proportion of Welsh Government resource allocated to Council/Fire Services compared to the proportion provided to health.

“During the Budget Workshops then Members will need to consider which discretionary and other services can be stopped.

“There will also need to be the continuing efficiency savings factored in together with increased estimates of income through fees and charges.

“In some cases then regional working or other collaborations may be considered. These could be included within the budget process if savings will be delivered within the two year window.”

The budget for the 2019/20 financial year has already been agreed by councillors for this financial year, with Leader of Wrexham Council and Lead Member for Finance, Cllr Mark Pritchard warning last autumn of more “savage cuts on the way”.

Along with the 5.5 per cent council tax increase, this year’s budget also included a review of the borough’s library services.

Other proposals – including a review of transport to faith schools and an annual £30 charge for green bins – had also been put forward, but were later put on hold following a public consultation.

Tomorrow executive board members will be asked to approve a timetable of meetings and workshops that will take place ahead of the budget consultation / process starts in the autumn.

Cllr Pritchard said: “It’s a process we go through every year and each year has become increasingly difficult to balance the budget, set the Council Tax and not reduce services to an unacceptable level.

“Next year will be no different and I am asking Executive Board to approve the dates for various workshops and consultations with stakeholders including the public at the end of the year.

“We have, once again, a huge task in front of us. We are being asked to make cuts of over £9m to our budget which is in addition to the £63 million already cut since austerity measures started.

“I am confident we will once again set a balanced budget in line with the expected cuts from Government.”

The report will be considered for approval by executive board meetings tomorrow morning at 10am. The meeting will also be webcast live on the Wrexham Council website for those who want to view the debate from the comfort of their own home.