An Audit Wales report into the financial health of Bridgend County Borough Council has suggested that the council faces very few financial risks as a result of the Covid-19 pandemic (pdf).
BCBC estimates it will have spent an additional £15million as a result of the pandemic and lost £6.5million in income. However, most of this has been covered by additional Welsh Government funding. In total, the budget impact has only been £500,000.
Auditors note the relatively high proportion of usable reserves held by the council (equivalent to almost 30% of the annual budget, or around £92.3million in 2020-21). They also note that BCBC has underspent in each of the previous four years to 2020 and the council expects to have underspent again in 2020-21 (though there have been overspends in social services and education).
While this may be good news for the council’s accountants and department heads, this news may frustrate residents who continue to face some of the highest council tax bills in Wales.
Overall, the conclusion was that Bridgend Council is in a relatively strong financial position compared to most Welsh local authorities.
Despite the glowing report, auditors recommend that Bridgend Council is more transparent with councillors over their budget plans and also warned that the council may – like other local authorities – find it increasingly difficult to find cuts in future budgets.
