Conwy Council facing £1.893m budget shortfall

Conwy County Council is forecasting a £1.893 million net revenue budget shortfall just three months into the 2026/27 financial year, with rising costs in social care and housing placing increasing pressure on its finances.

A Quarter One budget monitoring report, due before members next week, says the position is “concerning” despite services working to contain spending within approved budgets.

The report will be scrutinised by the Finance and Resources Overview and Scrutiny Committee next week before being considered by Cabinet.

The council approved its 2026/27 revenue budget in March, upping council tax by 6.5%.

The cash-strapped authority plugged a £7.968m resource shortfall with £2.236m of service cuts, £100,000 from reserves, and £5.632m from council tax.

But latest forecasts indicate spending will exceed the budget by almost £1.9m by the end of the financial year.

Reflecting on a net overall projected shortfall of £1.893m, the report states: “This is because of projected service pressures in both social care and housing.

“Whilst this is concerning given that the 2026/27 budget has only been set comparatively recently, the forecasts have been prepared on a prudent basis both in terms of expenditure and forecast grant and fee income.”

The report added: “Detailed work is being undertaken in the services to seek to contain spend within budget and ensure that forecasts are based on the most likely outcome.”

The same report warns councillors that “tough decisions” could be needed to avoid unwanted council tax rises.

The report said: “As we work our way forwards to formulating a balanced budget for 2027/28, the consideration of statutory service requirements, deliverability, financial risk and our Corporate Plan priorities and strategies, may necessitate tough decisions if council tax rises are to be kept to a minimum.”

The committee is set to meet at the council’s Coed Pella HQ on Monday, 10 August before cabinet will debate the issue the following day.

By Richard Evans – Local Democracy Reporter