Conwy, Powys and Swansea councils say they face big cuts

Three Welsh councils have said they are bracing for significant cost cuts as they face budget shortfalls.

Conwy council said it faced possible staff cuts, rising council tax and cuts to services in what it called its most difficult financial year in memory.

Meanwhile, some Powys council buildings could be mothballed to save on energy costs and Swansea council said it was in "short-term survival mode".

"I've never seen anything like it," one Conwy councillor said.

"We need more than a silver bullet. We need a silver bomb," Conwy cabinet member for finance Mike Priestley, who has been a councillor for 19 years, said.

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"It is really, really grim, and I know the team will pull together, and we've just got to get through this, but I have to emphasise that plea to UK and Welsh government - help us," he said.

Powys council head of finance Jane Thomas said she had never seen anything change the council's costs so quickly. She added that the patterns were reflected across Wales.

"Welsh government do not have the spare funding available to support us for this unless we see further funding coming from the UK government," she said.

Powys is, as a result, considering closing down buildings for a period of time and mothballing some properties to save on energy costs.

A council report stated that energy costs for Powys schools, council buildings and street lighting are expected to go up by more than £7.6m in 2023/24.

Conwy cabinet members setting the budget for the next financial year were meanwhile faced with finding a shortfall of £18.5m, a figure that could rise by millions if interest rate keep rising sharply.

Cabinet members heard how the cost-of-living crisis, staff pay increases, inflation energy costs, and rising interest rates were all worsening the funding gap, together with a prediction of a poor annual settlement from the Welsh government.

Conwy's Mr Priestley said the situation was made worse by it having the most elderly population in Wales.

This is due to the amount of money Conwy receives in its annual settlement, as the Welsh government allocates twice as much for a child as it does for an elderly person.

Swansea council's finance director warned local authorities were in "short-term survival mode" and "beyond the pretence" of planning for the medium-term because of the UK's financial instability.

Ben Smith told the Local Democracy Reporting Service the council faced an energy price "cliff edge" next April when targeted support from the UK government was due to end.

He said the council would become exposed to soaring cost increases after its fixed-price contracts ended.

Inflation was also higher than forecast for when councillors set the 2022-23 budget earlier this year.

Mr Smith said council staff were being offered a minimum pay rise of £1,925 next year - or a 7-8% average increase - as part of national negotiations, which was more than double the 3% the council budgeted for.

That means the council will have to find an extra £12m unless the pay rise is covered by central government.