Budget pressures force Flintshire Councillors to approve 9.5% council tax hike

Flintshire County Council has approved a 9.5% council tax increase for the coming financial year, with councillors warning that without the rise, the authority faced potential bankruptcy.

The decision, which includes an 8.9% council tax increase from the council and a 0.6% rise from North Wales Fire & Rescue Service and the coroners service, comes as Flintshire struggles with a significant budget deficit.

Councillors cited insufficient funding from the Welsh Government as a key factor in the financial strain.

Councillor Simon Jones (Brynford and Halkyn) described the decision as “the most difficult action I have had to take as a councillor,” adding: “No one stands for election to put council tax up by these levels, but once again Welsh Government let Flintshire down by not properly funding the county.”

The council had initially drafted its budget before the Welsh Government announced a funding floor of 3.8% in its Local Government Settlement, giving Flintshire an extra £1.2 million.

However, council leader Dave Hughes said this amount was inadequate, stating: “It’s a drop in the ocean. The only thing that matters is whether we can get our heads above the waterline.”

Flintshire’s funding increase remains below the Welsh average of 4.3%.

Cllr Hughes criticised the allocation, arguing that some councils benefiting from the Barnett Formula have larger reserves yet still receive more funding.

He said: “If the Welsh Government had set the floor at 4.3%, we’d have an extra £26.9 million.”

The financial pressures have forced the council to make cuts, including a 2.5% reduction in the schools budget, despite warnings from the Education, Youth and Culture Overview and Scrutiny Committee.

Schools face a funding gap of £12.3 million, and the council will also scrap its £750,000 fund used to help schools manage budget deficits.

Flintshire’s current deficit stood at £47.5 million in December, but Cllr Paul Johnson, cabinet member for finance, said measures have since been taken to reduce it.

“We are still working on the accounts for the end of the year, so we can’t say what our final position for 2024/25 will be yet,” he said.

To cut costs, the council has also proposed reducing spending on discretionary homelessness prevention initiatives, saving around £563,000.

Councillor Jones defended the tax rise, saying that rejecting the increase would have left Flintshire in financial collapse.

“Bankruptcy would have resulted in council tax being set by administrators at levels over 15% for 2-5 years. It would also have meant services being closed, such as leisure centres, all road repairs stopping, and children and elderly services being cut to the bone,” he said.