Gwynedd Council’s financial situation has gone from “catastrophic” to “very poor”, its chief executive has said.

The council received more funding than expected in the Welsh Government’s latest settlement, but a “substantial” budget deficit still remains.

The council’s cabinet met last week to discuss the authority’s proposals for cuts of £519,000 to help bridge its 2024/25 fiscal gap.

Despite the Welsh Government Revenue Support Grant (RSG) level for 2025/26 increasing by 3.2 per cent, the amount was still “significantly lower” than what was needed to maintain the current level of services, the cabinet was told.

Chief executive Dafydd Gibbard said although the council received a settlement from the Welsh Government “better than anticipated”, its financial deficit had fallen from £22m to £8m – “still a very substantial deficit”.

The cabinet heard that the council’s savings plan was less than in previous years due to the increased funding and previous year’s cuts “still in the pipeline”.

The scope to make more savings was “almost gone” as there were “no more efficiency savings left in the system,” he said.

“After £74m over 14 years, all we can achieve now are cuts,” he added.

“But implementing consensus for cuts is extremely difficult, and every cut has an impact on the people of Gwynedd if we stop providing services.”

The council also faced “significant increases in staffing costs” after the UK Government Budget decision to increase the employer’s National Insurance contribution.

“As an employer of 6,000 staff, this adds £4.5m to our staffing costs,” a report stated.

During the meeting the cabinet approved the plan for savings and cuts of £519k to be used as a contribution towards the 2025/26 fiscal gap.

It also agreed to commission the council departments to “move forward” with the scheme.

Proposed cuts included increasing pest control service fees, reducing resources in Fleet Services and reducing the Grounds Maintenance Service.

The cabinet also agreed to delegate the right to the chief executive, in consultation with the council leader and the finance cabinet member, to make adjustments to the proposed savings and cuts scheme.

The chief executive said said: “It certainly is sad that we have to discuss this matter every year, none of us come into this room wishing to make decisions on cuts, that is not why we are involved in the public sector.

“But we have to face the situation. We have no choice.

“Although the change in the budget from the government in Cardiff was better, don’t think for a moment because it’s better it is good, we have moved from a catastrophic financial situation to a very poor financial situation, and the situation remains very poor.”

Council leader Nia Jeffery said: “It is no news to us that we are facing a shortfall in our budget next year, but we have to make amendments to set our budget, but it is something that feels totally contrary to what we want to do to achieve the best for the people of Gwynedd.”