Cracks are beginning to show in Welsh councils as many have failed to implement appropriate budgetary plans, auditors have warned.
While local authorities have been able to meet the financial challenges so far, a number lack robust arrangements for efficiency savings on which they will become increasingly reliant - the Auditor General for Wales, Huw Vaughan Thomas, has said.
Many Welsh town halls are not clear how they will manage with fewer resources and are not developing sustainable plans to finance their priorities, according to the Meeting the Financial Challenges report.
Strategic plans are not routinely based on ‘sound and appropriate financial information’ or being effectively monitored in certain local authorities.
The Welsh Audit Office (WAO) urged town halls to explore more opportunities to work together and with other public services. Analysis suggests councils are not regularly considering whether co-operation with other organisations or partnerships could boost effectiveness or generate savings.
However, the WAO report also said a number of councils – including Vale of Glamorgan, Monmouthshire CC and Rhondda Cynon Taf CBC – were showing good or promising budgetary work.
Thomas said: ‘Local government in Wales has had a more generous settlement than England recently, but now faces sharp reductions in funding. That is coupled with pressures from a growing, and ageing, population – with rising demands in areas such as social services, education and waste.
‘All of this spells trouble for local authorities if they do not have robust, longer-term, strategies in place which are linked to medium term financial plans.
‘Too many councils are falling short and running out of time,’ he added.
