Council leaders are warning the cuts and impending reorganisation of our councils will be the biggest challenges they face in 2015, as SOPHIE BROWNSON reports.

FOLLOWING massive cuts of up to 4.3 per cent council leaders have said managing the tighter budget in 2015 will be the biggest challenge they face as councils attempt to deal with the impact on their constituents.

Earlier this month, public services minister Leighton Andrews slashed local government revenue funding to £4.125 billion, leaving Gwent councils with millions of pounds to find in savings.

Cllr Keith Reynolds, Leader of Caerphilly County Borough Council said the council face a few difficult years ahead financially as the council is forced to make savings of £12.8 million for 2015/16.

“Early 2015 will see us set our budget for the forthcoming year, and as readers will know we need to make savings for 2015/16 to the tune of 12.8 million pounds," he said.

“Despite these financial challenges however, I’m confident that together we can continue to protect key frontline services and ensure that our residents - particularly our most vulnerable ones - continue to receive first class services to meet their needs.

“There are many challenges ahead for us, not only into 2015 but for a number of years to come, but rest assured that everything we do is aimed at supporting the people of Caerphilly county borough and striving to deliver quality services for the people we represent.”

The leader of Torfaen Council, Cllr Bob Wellington CBE agreed that economic challenges will be the biggest they will face in the New Year, but said we should approach 2015 with optimism: “As we say goodbye to 2014, let us look forward with optimism to 2015,” he said.

“Torfaen, like all parts of Wales, will continue to face some very real economic challenges which has made this another tough year for many families.

“However, I remain surrounded by colleagues and community organisations who hold a deep held desire to improve lives of local people.”

Against a backdrop of cuts, Torfaen was one of the local authorities to agree to Leighton Andrews' suggestion to reduce the number of councils in Wales.

The proposal aims to reduce the 22 councils in Wales to between ten and 12 by 2017-18, which the Welsh Government claims would save half a billion pounds over a decade.

Both Torfaen and Blaenau Gwent councils have agreed to a voluntary merger.

Cllr Wellington added: "In 2014 the council voted unanimously to take the bold step to unite with Blaenau Gwent to face these tough times.

“I believe that despite the current climate, we have shown a commitment to change and act differently in order to come through these times stronger as a region.”

Leader of Blaenau Gwent Council, Cllr Hedley McCarthy said we face the most challenging period in living memory through economic struggle but said reorganisation in the form of the General Election will be our biggest opportunity.

“These are difficult times and in Local Government we are facing the most challenging period in living memory, but there are opportunities in 2015 to begin to put things right,” he said.

“The biggest opportunity comes in the shape of the General Election in May.

“Often you will hear people say all the political parties are the same.

“I must say that is not my experience and the evidence for that is very visible.

“It is a terrible strain on our society that many of our people have to rely on food banks to be fed.

“Councils up and down the land have been making unprecedented cuts as a result of the Tory/Lib Dem Government’s austerity measures.

“No councillor comes into Local Government to take these decisions which have been imposed from above.

“However you look at it, it is hard to say all the political parties are the same, not in 1945 and not in 2015.”

This comes after Newport city councillors refused the Welsh Government proposal to voluntarily merge with Monmouthshire County Council. Despite a request for voluntary mergers, Mr Andrews could still put the Welsh Government's proposals in place without the approval of councils.

After rejecting the merger with Newport, Cllr Peter Fox said he will continue to ensure Monmouthshire council is run efficiently despite the 4.3 percent budget cut they face in 2015.

"While the last couple of years have been exceptionally challenging financially 2015 is going to be especially tough,” he said.

“Monmouthshire has had its budget cut by over 4.3 percent and we were already the lowest funded council in Wales by a huge amount.

“The challenge will be trying to maintain the services people want and value with a lot less money.

“It will remain important to us to engage with our public to help them understand what may change.

“Most of these services are already running as efficiently as possible so now we have to find ways of delivering many of them differently, possibly at a different level than currently.

“My priorities for 2015 will be to continue to ensure Monmouthshire County Council is as well run and efficient as it can be and the county of Monmouthshire has a strong voice and presence in South East Wales.

“I want the council to make further progress on tackling disadvantage of all types - especially child poverty and rurality.

“Monmouthshire is often seen as an affluent place with no problems but this isn't necessarily a true picture.”

Despite many council’s rejecting the merger plan set out by the Welsh Government, 10 councils including Newport and Monmouthshire, have agreed to work together in a combined authority, as suggested by the Welsh Local Government Association.

The South East Wales Regional Partnership Board will be made up of leaders from each of the regions supported by their Chief Executives. It is made up of representatives from Blaenau Gwent, Bridgend, Caerphilly, Cardiff, Merthyr Tydfil, Monmouthshire, Newport, Rhondda Cynon Taf, Torfaen and the Vale of Glamorgan Councils. The idea comes after seeing city regions such as Manchester, Leeds and Sheffield successfully negotiate new funding relationships with central government, and council leaders in South East Wales believe a democratic combined authority will help them to work strategically together on improving the economic and social well-being of the South East Wales region as whole.

With plans to revive the region's economy gathering steam, cllr Bob Bright said 2015 will be a year of contrasts due to the severe budget cuts the local authorities face.

Leader of Newport City Council, Councillor Bob Bright said it was 2015 is full of contrasts like this.

“On one hand we have one of the most exciting times with the opening of the Friars Walk development, but on the other we face significant budget cuts which mean we cannot continue to deliver all the services to our residents that we want to,” he said.

“The council has to make some difficult choices about where to find savings.

“We’ve already made more than £50m and have to find another £10m for the next financial year.

“There is little room left for us to make further savings without significantly impacting on key services.

“It must be stressed that these financial pressures have not been created by the council and we are being forced to cut services as a result of significantly reduced funding.

“The situation will only get worse which is why it is one of the biggest challenges facing us not just next year but in years to come.

“However, 2015 will also see the opening of the long-awaited and much-anticipated Friars Walk.

“This retail and leisure development will see the city centre transformed.

“We know that residents have been waiting a long time for this scheme but people can now look forward to seeing this important part of the city centre’s revitalisation complete.

“And it is important to remember that Friars Walk is not just about shops.

“It will create new jobs.

“It is already acting as a catalyst for further investment in the city centre.

“It’s about raising the game of Wales’ third city, and allowing Newport residents to feel proud once again about their city centre.”

Minister for Public Services, Leighton Andrews has laid out the way forward for local government by bringing forward a Bill later next year (2015) to put in place voluntarily merged authorities by April 2018 and in 2016 and a further Bill to enable mergers in other parts of Wales.

“There is no doubt that the challenge facing local government in 2015 is huge,” he said.

“The report by the Commission on Public Services Governance and Delivery provides a compelling case for change.

“It said continuing with 22 local authorities is not an option.

“In addition, the problems facing local authorities are likely to be compounded by a worsening financial situation and an increased demand for services.

“I want to work with councils to drive forward plans to create modern, flexible and effective local government across the length and breadth of Wales.

“I have offered councils who are willing to change the opportunity to shape their future.

“While I am encouraged by those that have grasped this opportunity, it is disappointing that more haven’t recognised the opportunity voluntary mergers offer them to be in the vanguard of shaping the future role of local government.

“We will respond formally to the Expressions of Interest we have received early next year and will also publish a White Paper setting out our expectations for the role of local government, community governance, democracy and performance.

“We value frontline local authority services and the thousands of workers who deliver those services and will put in place a Staff Commission to help guide authorities through this period of major change.”