Flintshire Council considers further cuts to tackle £21m deficit
A 5% council tax rise in Flintshire next year would not be enough to stop the authority facing a financial black hole of £21 million.
According to the latest budget forecast – calculated using a 5% increase in council tax for 2026/27- would barely scratch the surface of the funding gap the council must bridge.
No final decision has been made on the council tax level for next year but councillors and officers are refusing to leave any stone unturned to try to manage the deficit – with the cabinet member for finance Cllr Paul Johnson highlighting specific concerns within scrutiny committees that school spending may once more be cut.
The authority’s medium-term budget strategy and report says that even if council tax rises by another 5% – and the Revenue Support Grant from Welsh Government goes up 2% – Flintshire County Council will still be facing an operating deficit of £15.41m for 2026/27.
Public sector pay, which went up 3.2% this year and will rise 4% next April and teachers pay, which increased 4% earlier this month and will rise 4% again next September, are helping drive the budget pressures, as is a shortfall in funding provided by Welsh Government to cover the National Insurance rise and general inflation.
In total the council’s remaining budget pressures – which under review were now all deemed a priority – totalled £27.45m.
If the Welsh Government delivers on its promise of a 2% uplift in the Revenue Support Grant that will add £5.5m to Flintshire’s budget while a council tax increase of 5% would provide another £6.5m.
That would leave the council with £15.45m to find. But those figures do not include the impact of social care spending, which is facing a projected overspend of £6.5m by the end of this year – a cost which would increase the total budget deficit to £21.45m. That cost – a statutory responsibility which Flintshire has little control over – could also rise between now and April.
Presenting the report to Flintshire County Council’s Cabinet, Deputy Leader of the Council and Cabinet Member for Finance and Social Value, Cllr Paul Johnson, said: “We are seeing the cost of living crisis reflected in our own budget.
“Although we keep making savings the pressure just continues to build. An essential review of the council’s pay modelling to address recruitment and retention has £2m allocated but will remain under review.
“Meanwhile a shortfall of £193,000 from UK Government to cover the National Insurance rise must be absorbed into next year’s budget.
“Officers are developing a range of budget-balancing options which members will be engaged to brief into committee discussions. CROSC (Corporate Resources Overview and Scrutiny Committee) has already expressed concerns about the implications if school budgets are reduced again this year.
“Every option must be considered no matter how difficult. The financial impact on our residents is going to be real. Many are already struggling and our decisions must reflect that reality.
“But our priority must also be to protect vital services, especially those that support the most vulnerable.
“This is a serious moment, but it is a moment to stand up and be straight with the people of Flintshire and to lead.”
Gary Ferguson, Flintshire County Council’s Corporate Finance Manager, said: “It is a very concerning position.
“A separate piece of work is being undertaken on the projected social services overspend and that could increase the amount we need to find for next year.
“One piece of positive news is that we expect the provisional settlement (the revenue support grant) to be announced earlier this year – around October rather than December. That will give us more planning time deal with whatever that tells us.”
By Alec Doyle – Local Democracy Reporter
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