Gwynedd Council is forecasting a budget deficit of £9.8 million for the 2026/27 financial year.

It is anticipated the council will have to plunder its reserves to fund an “almost inevitable financial deficit”, a report noted.

The Revenue Budget 2026/27 – end of August 2026 Review is due to be discussed by Cabinet, and paints a grim picture.

Four of the council’s departments have a budget deficit above the £100,000 threshold with expenditure in the fields of children’s extra-county placements, waste, residential and domiciliary care, post-16 care and the Derwen service (for children with disabilities), above their allocated budget.

Parking and highway income targets are also not being met and the council tax yield and council tax premium of £5.3 million is below this year’s budget.

Chief Executive Dafydd Gibbard held an urgent meeting with all relevant heads of department, the report stated, “to gain a better understanding of issues in departments and a clear programme to respond including continuing to push to achieve savings.

“It is anticipated the council’s reserves will need to be used at the end of the financial year to fund the almost inevitable financial deficit.

“Cabinet will then need to decide which funds will be appropriate to use, based on the recommendations of the statutory finance officer.

“This year, particular attention will have to be paid to the significant impact of housing transfers from tax and premium paying properties to properties subject to non-domestic rates,” the report said.

At Cabinet on 10 November, a decision will be sought to “accept the report and note that the forecasts for a significant budget deficit for 2026/27, in the Children and Families Department and the Adults, Health and Well-being Department, with a deficit to a lesser extent in the Environment and Highways Departments as well”.

It will also seek “to approve additional financial support above the contractual payment to Cwmni Byw’n Iach to be funded from the transformation fund, delegating the right to the Cabinet Member for Economy in consultation with the Cabinet Member for Finance, the Chief Executive and the Head of Finance to agree on the amount of the final financial support above the contractual payment with Byw’n Iach at the end of the financial year”.

And it will also call for “approval of funding of the £1.006 million above budget expenditure in the field of waste using £1.006 million from the Producer Extended Responsibility Fund for packaging materials”.