Newport City Council will have to find near £13m savings next year thanks to falling government support, the town hall has revealed.
The Welsh Government has indicated the grant it will hand to the council will fall by up to 4.5% in cash terms instead of the 1.5% previously forecast.
Despite already identifying savings of £4.9m for 2015/16, the council will redraw its medium term financial plan to deliver a further £8m of cuts.
Deputy council leader, Cllr Ray Truman, said Newport would now have to make ‘extremely difficult decisions’ about what services it can continue.
‘We are placed in this position because of continuing UK government austerity measures and the knock-on effect for Welsh Government which provides the largest share of local government funding,’ Cllr Truman said.
‘For local government the financial situation is showing no sign of getting any easier, in fact the position is worsening.
‘The council has already made significant financial savings through developing new service models, finding innovative new ways of delivering services and in some instances even having to stop services that we have traditionally provided but can no longer afford.
‘It is a harsh financial reality we are facing and one the council and our residents were not expecting but one we have to prepare for.’
