Local Welsh councils are warning that it is only a matter of time before one goes bankrupt if cash pressures do not ease. According to Anthony Hunt, Labour leader of Torfaen council, the very fabric of local public services is under threat, while Mark Pritchard, independent leader of Wrexham council, said it faced cutting community care help that would harm NHS services. Welsh government officials said they would continue to work closely with councils to “meet the shared challenges”. BBC research found Welsh councils expected a combined shortfall of £394.8m over the next two years.
Mr Pritchard told BBC Radio Wales’ Sunday Supplement that it had made £60m in budget cuts. More savings will be needed in the next year.”It’s only a matter of time,” he said. “If local authority across Wales is not funded, it will go bankrupt.” Authorities have been forced to make difficult decisions, including opting to potentially axe a £1.4m grant for those needing home adaptions after surgery like handrails, which may lead to a knock-on (and negative) effect on NHS services.
Mr Hunt highlighted the precarious financial situation in England where one in 10 councils is at risk of bankruptcy due to a looming shortfall of £10bn. While Welsh local authorities are in a better position, services are nonetheless under threat.
Mr Pritchard has questioned the Welsh government’s spending priorities, including the purchase of Cardiff Airport and universal free school meals. “There’s millionaires in Wales who have free prescriptions and their children can have free school meals—it’s got to stop,” he said, adding: “You can’t give away everything.”
The Welsh government has said it’s providing increased funding for local authorities this financial year, with a 7.9% increase on a like-for-like basis across Wales, following a 9.4% rise in 2022-23. The Welsh government added it recognizes that local authorities are facing difficult decisions and they are working closely with councils to solve the shared challenges
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