The increase in council area contributions to the South Wales Fire and Rescue Service budget could be greater if pension increases aren’t funded by central government, the fire authority has warned.
A report on the authority’s revenue budget shows two scenarios for increased contributions from the 10 local authorities covered by South Wales Fire and Rescue Service because there is still uncertainty over whether increased firefighter pension costs will be funded by the UK Government.
From 2019 to 2023, South Wales Fire and Rescue Service’s pension contribution is expected to go up by nearly 10% – or nearly £3m – which is 4% of its total budget.
If this is not funded by central government the fire authority says it will “reluctantly” have to increase the contributions budget to raise the money locally.
South Wales Fire and Rescue Service covers Blaenau Gwent, Bridgend, Caerphilly, Cardiff, Merthyr Tydfil, Monmouthshire, Newport, Rhondda Cynon Taf, Torfaen and the Vale of Glamorgan.
The report says population changes across south Wales will lead to a change in contributions regardless of the budget.
The authority is looking at a total budget for 2019-20 of just under £72m if the pensions are funded by central government but this will go up to nearly £75m if they are not funded, taking in to account the extra £2.9m that will be needed for this.
If the pension increases are funded these are the proposed contributions from each of the 10 council areas and their percentage increase from last year which in total would be 0.93%
Bridgend- £6.7m (0.87% increase)
Vale of Glamorgan- £6.04m (0.69% increase)
Rhondda Cynon Taf- £11.2m (0.77% increase)
Merthyr Tydfil- £2.79m (0.64% increase)
Caerphilly- £8.5m (0.73% increase)
Blaenau Gwent- £3.2m (0.49% increase)
Torfaen- £4.33m (0.68% increase)
Monmouthshire- £4.38m (0.73% increase)
Newport- £7.02m (0.93% increase)
Cardiff- £17.4m (1.5% increase)
But if the pension increase is not funded there will be a increase from last year of more than 5% in contributions from councils. Here’s how that scenario would look for each authority.
Bridgend- £7.019m (4.94% increase)
Vale of Glamorgan- £6.29m (4.76% increase)
Rhondda Cynon Taf- £11.7m (4.84% increase)
Merthyr Tydfil- £2.9m (4.7% increase)
Caerphilly- £8.88m (4.8% increase)
Blaenau Gwent- £3.39m (4.55% increase)
Torfaen- £4.5m (4.75% increase)
Monmouthshire- £4.55m (4.8% increase)
Newport- £7.3m (5% increase)
Cardiff- £18.1m (5.59% increase).