Home » Rhondda Cynon Taf proposes 4.5% council tax rise to protect services and fund schools

Rhondda Cynon Taf proposes 4.5% council tax rise to protect services and fund schools

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 containing the council’s budget proposals for 2025/2026 due to go before cabinet on Wednesday, January 22 said that this would generate £549,000 more in income compared to the 4% previously modelled.

It also said that this would align with the expectations of the 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 is now facing a £6.82m budget gap.

The proposed budget would mean schools would be allocated funding next year to cover in full all their pressures, which will see an additional £2m allocated to the individual schools budget (ISB).

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 2024/2025, ringfenced for ongoing cost pressures associated with additional learning needs.

The report said that overall the schools budget will increase by 7% from £198m to £212m.

The council is considering changes to its residential care homes for the elderly which would include closing Cae Glas care home in Hawthorn and Ferndale House in Ferndale.

online casinos UK

If agreed by cabinet at the same meeting on January 22, this would save the council £2m a year.

On fees and charges, the council is proposing a 5% standard increase, recognising the “significant increase in our cost base and subsequent level of subsidy.”

A number of areas will have their own treatment and the 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 and service restructuring and vacancy management.

The report said that 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 and £633,000 through fees and charges, the budget gap reduces to £1.89m with a decision on residential care home changes still pending.

The report said the financial implications of the cabinet’s decision with regard to residential care accommodation will be factored in as appropriate.

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 during 2024/2025 by £2.69m to quarter two.

But the report said “whilst the settlement for 2025/26 is more favourable than anticipated, the outlook beyond continues to look challenging. Accordingly, it is recommended as being prudent to keep the use of this reserve to a minimum level in support of next year’s budget, in order to protect the subsequent years budget strategy from having to address a more significant underlying budget shortfall. ”

The report said it will be for cabinet to decided how they would wish to balance the council’s budget in light of the above proposals, the decision they make on residential care accommodation and the use of transition funding.

Author