Posted on: Tuesday 14 January 2025
Today, Torfaen Council’s cabinet will review the in-year financial forecast and outline plans to achieve a balanced position by the end of the 2024/25 financial year.
The month 8 monitoring position for 2024/25 indicates an in-year deficit of £1.3 million, compared to a £2.6 million deficit two months before.
Torfaen Council Leader, Cllr Anthony Hunt, stated, "Despite ongoing financial pressures in areas like Children’s Services, additional grant money from Welsh Government and work we’ve done internally have improved our financial position. This sets us up well to balance our budget and deliver key priorities next year."
Cabinet will also review the latest budget proposals for 2025/26.
The council's 2025/26 net budget is estimated at £248.5m, with £192.2m expected from Welsh Government, pending the final settlement.
Cllr Hunt stated that the council received a 4.8% increase in the draft Welsh Government settlement, which, alongside additional funds from the Welsh Government to cover the national pay award for staff.
The report outlining Torfaen’s budget proposals includes:
- A 6.9% or £5.35 million increase for Torfaen’s schools to help fund their pressures, with a further investment of £750,000 for the schools’ budget and schools related Additional Learning Needs support.
- A further £800,000 for Crownbridge Special School; making a total investment of £1.26m.
- £800,000 to meet demand pressures on School Transport and for Additional Learning Needs.
- A 5% increase for Social Care providers to recognise the impact of the Real Living Wage.
- An extra £1m for Adult Social Care services.
- An extra £1m to transform Children’s Services and meet care costs in 2025/26 and 26/27, leading to a net reduction by 2027/28.
- An extra £385,000 to meet cost pressures in refuse and recycling services and a £227,000 investment in a waste education and enforcement team.
- An extra £3m million to cover staff pay and pension inflation.
- £250,000 to continue the school leaver employment and apprentice scheme.
- An extra £534,000 to help support nearly 10,000 Torfaen homes through the Council Tax Reduction scheme.
Councillor Hunt added: “These proposals prioritise investment in schools and education, protect local services, and keep council tax bills low.
“This is the fourth year we're proposing one of the lowest council tax increases in Wales. We recognise many households struggle with bills, so we have maintained funding for our Council Tax Reduction Scheme supporting nearly 10,000 homes on low incomes.
“Additionally, around £29 million is proposed for capital investment next year, including funds for disabled facility grants to help people stay in their homes.”
Following Cabinet, the budget will be scrutinised by all councillors on the 28th of January and public engagement on the proposals will begin on the 29th of January.
Agenda document for Cabinet - 14/01/2025