Plaid Cymru councillors have blamed the Labour UK Government for underfunding the increase in National Insurance which will cost Caerphilly Council at least £313,000.
The size of the underfunding - revealed in a report to Caerphilly councillors - was bitterly criticised by Councillor Colin Mann, Deputy Leader of the Plaid group, on the authority.
Councillor Colin Mann said: “There were promises made by the UK Labour Government to fund the rise in NI for employers imposed by the Chancellor of the Exchequer Rachel Reeves.
The Llanbradach councillor said: “Now we see what the impact is - £313,000- and this will grow more every year and increase financial pressures on the authority and local council taxpayers will end up picking up the bill in one way or another – through council tax rises or cuts in services.
“This is a clear example of Wales being sold down the river and a Labour Government in Wales failing miserably to obtain the full amount Wales should be entitled to. So much for the two governments working together.”
The UK Government is providing £185m to cover the NI rise, leaving a shortfall of £72m, with the Welsh Government only covering half the increase from its reserves.
Coun Colin Mann added: “The public sector is of course in a better position than charities who have received nothing to cover the higher NI costs. Many charities are struggling to cope and some have had to reduce staffing to cope with the financial pressures.”
The report to Caerphilly Council also revealed:
· A total of £216,000 in saving proposals is forecast not to be achieved in the financial year.
· The Ffos Caerffili market is heading for a shortfall of £69,000 which may mean the authority having to use grant funding to cover the costs.