Concerns raised over £72m shortfall's effect on council
Peter Fox has written to Monmouthshire Council's leader regarding the impact of the shortfall in employer National Insurance (NI) funding.
The shortfall comes following the UK Government decision to increase NI contributions without providing full funding to local authorities, leaving public sector bodies to pay more to employ staff.
Mark Drakeford, Labour's finance secretary, assured in November that additional funding would cover these increased costs.
This week, he revealed the UK government would not provide full funding, leaving a £72 million shortfall across Welsh public services.
Mr Fox said: "Mark Drakeford assured us that these tax increases would not fall on the public sector, so last week's news was bitterly disappointing.
"Local authorities will now face a difficult choice: either cut vital services or raise council tax to cover the extra costs."
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