A VALLEYS council leader said the budget for next year is “much more positive” thanks to additional funding.
Councillor Andrew Morgan of Rhondda Cynon Taf (RCT) Council has also said the fact they still have a budget gap, although significantly reduced, does mean they’ll still use transitional funding but it’ll be less than £1m.
A 4.5% increase in council tax is being considered for Rhondda Cynon Taf residents next year as the council looks to balance its budget.
A report on the council’s budget proposals for 2025-26 went before cabinet on Wednesday, January 22, and said this would generate £549,000 more in income compared to the 4% previously modelled.
It also said this would align with the expectations of cabinet in terms of avoiding excessive increases in council tax levels and in light of the remaining budget gap which the council faces and the desire to maintain as many services as possible.

Following the announcement of a provisional 4.8% increase (which gives the council £29.24m in extra resources) in its funding from Welsh Government for next year and when taking into account early budget cuts (£10.28m) and updated budget requirements (£10.6m), RCT was left facing a £6.82m budget gap.
The budget proposals being consultd on would mean schools would be allocated funding next year to fully cover all of their pressures, which will see an additional £2m allocated to the individual schools budget.
The report said this will see the schools budget increase by £11.2m for next year, or 5.6%, and will be fully funded.
It said resources for teachers pension costs have been allocated to schools and the base budget requirement has been adjusted to reflect updated lower energy budget requirements.
One-off funding of £500,000 has also been included which the council used to support the schools budget for 2024-25, ringfenced for ongoing cost pressures associated with additional learning needs.
The report said overall, the schools budget will increase by 7% from £198m to £212m.
At the same meeting cabinet decided to close Cae Glas care home in Hawthorn, which saves the council £1.164m.
On fees and charges, the council is proposing a 5% standard increase and these proposals would generate additional income of £633,000.
When it comes to efficiency savings, an extra £5.75m has been found which includes things like general efficiencies, capital charges and interest receivable, service restructuring and vacancy management.
The report said the measures proposed can be delivered operationally and without a significant detrimental impact on front line services
Taking into account the £5.75m in efficiencies, £2m extra for schools, £549,000 from the 4.5% proposed council tax rise, £633,000 through fees and charges and £1.164m saving in closing Cae Glas, the budget gap reduces to £727,000 with the current plan being for this to be covered by the council’s transition funding reserve.

In previous years, the council has used its transition funding reserve as part of its budget strategy and this stands at £4.72m having been replenished by £2.69m during 2024-25.