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8th October 2019

Millions of pounds would still have to be cut from Vale of Glamorgan services even if residents face further tax hikes

BY: Matt Discombe Local Democracy Reporter

Millions of pounds would still have to be cut from Vale of Glamorgan services even if residents face further tax hikes, a “stark” new report has warned.

The council would have to save between £10.470m and £14.986m over the next three years if annual council tax rises stay at 4.9% – the rate it rose by this year.

But if the council chooses greater council tax rises in line with the average for Wales – 6% – the authority would still be forced to make £3.747m and £8.263m of savings.

It comes as the council – which has had to save more than £55m in the past 10 years – is consulting on the level of tax next year.

The authority faces a possible budget deficit of £6m for the next financial year.

Council leader Neil Moore told the cabinet on October 7 the authority faces a “stark reality”.

He said: “People have to realise in the last 10 years we have made savings of over £55m and we need to make £15m savings within the next three years. Things are getting harder.”

The predictions – for the years 2019-20 to 2022-23 – assumes there will be a cash neutral or 1% reduction in the council’s annual settlement from Welsh Government.

The council’s budget for this financial year was £226m and the authority set itself a savings target of £3.8m.

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