The leader of Caerphilly County Borough Council has called on the Welsh Government to give greater clarity on the level of future budget cuts to local authorities.
Lesley Griffiths AM, the Minister for Local Government, has written to all Welsh councils indicating that budget settlements for local authorities in 2015/16 and 2016/17 could be much worse than first expected.
She has asked them to plan for budget cuts of up to 4.5%.
Caerphilly Council has been working on a reduction in funding from the Welsh Government of 1.34% for each of the next two financial years.
In the worst-case scenario this could add a further £8.6m of cuts to Caerphilly’s current savings target for 2015/16 and a further £8.1m for 2016/17.
Cllr Keith Reynolds, Leader of Caerphilly County Borough Council, said: “The potential for this degree of additional cuts means we will need to rethink our current approach and it is clear we will be required to cut harder and deeper in order to deliver these huge savings. I would urge the Welsh Government to provide clarity about the actual budgets reductions as soon as possible so that we can make firm plans for the future.
“The difficulty we face at present is that these are just indications from the Welsh Government and we will not have the true picture about the final budget settlement until later this autumn.
“This uncertainty makes it harder for us to plan ahead, but I’m sure our residents can appreciate that this level of reduction will have a significant impact on our ability to provide services and we will need to reconsider our approach to making savings in light of this worrying announcement.”