Torfaen Council has learned how much cash it is set to receive from the Welsh Government to fund services in the coming financial year.
The figure was revealed in the Welsh Government’s provisional local government settlement for the 2023-24 financial year – and could change before it’s finalised next year.
It has now learned it will receive an extra £12 million, an increase of 7.5 per cent, meaning its core funding from the Welsh Government next year will be £172.223 million.
Wales’ finance and local government minister Rebecca Evans said: “When I announced our budget I prioritised the protection of frontline public services, and this increased funding to councils – who deliver so many of these services – is a vital part of that.
“I recognise however that inflationary pressures being faced by services mean that local authorities will still need to make difficult decisions in setting their budgets.”
She said the government would work with councils to meet “shared challenges” and deliver services.
The overall budgets that councils across Wales have to be spend will be increased by the council tax they set and collect as well as any revenues they generate such as from parking charges.
Response from Torfaen Council
Torfaen has already warned it faces a £12.5 million shortfall between expected costs and revenue next year. The cabinet member responsible for resources said this week’s settlement announcement had given it “a fighting chance”.
Cllr Sue Morgan said finance officers are still working through the detail of the council’s provisional award and what it will mean for services, with the authority having already agreed that its council tax increase will be limited to 1.95 per cent.
She said: “Our new County Plan focuses our resources on improving the wellbeing of residents by tackling inequalities and addressing the environmental challenges we face. This settlement gives us a fighting chance and will be considered in more detail by cabinet and councillors in January.”
Torfaen’s settlement
Overall settlement: £172.223 million
Cash increase: £12.005 million
Percentage increase: 7.5 per cent