South Wales Evening Post - 30 July 2007
Residents living in Swansea could be hit with a huge council tax increase to pay for an £11 million funding deficit.
Swansea Council's cabinet member for finance, John Newbury has admitted the council books could have an £11.3 million black hole in 2008. It means spending cuts and tax rises are likely.
Councillor Newbury said: "While decisions cannot be made until the local government settlement is known, clearly difficult decisions will need to be considered in the 2008/09 budget process over the coming months."
The majority of cash to run Swansea Council comes from the Assembly Government in grant form, but a large chunk comes from residents' council tax payments.
The process of calculating just how much that is likely to be has already started, with department heads at Swansea Council outlining how much they will expect to spend over the coming year. Next month, they will be asked to suggest areas where savings can be made and how best to meet the funding shortfall.
Councillor Newbury warned: "These choices will inevitably include a review of spending, income and charging policies. In February, the council will need to determine a council tax levy in the light of this consideration."
Opposition leader David Phillips said the deficit had been known about for some time and more should have been done to work out how it was going to be met.
He said: "It is clear that Councillor Newbury does not know how he intends to bridge this deficit. At this stage of the financial year, I find that inexplicable and inexcusable."
Councillor Phillips added that council tax rises would be inevitable in the future and warned jobs could also be at risk if services were subject to cost-cutting measures.
He said: "This administration has talked about keeping council tax increases down, but they are just postponing the inevitable. It will have to go up either next year or the year after, whoever is in power.
"The people of Swansea will be asked to pay for this deficit one way or another. Either through an increase in council tax, or through services being cut."
