COUNCILS in Gwent could be asked to pay more to fund the running of a renowned archive following a seven-year freeze amid cost pressures.

Gwent Archives is facing a forecast deficit of £70,446 this financial year and an estimate for next year shows a budget gap of £72,728.

The five Gwent councils – Newport, Monmouthshire, Torfaen, Blaenau Gwent and Caerphilly – currently contribute towards a total budget of £939,400.

Plans have been drawn up to increase the budget to £1,012,128 amid funding pressures linked to rising service costs and concerns over reserves being eroded.

The proposals would see Newport council increase its contribution by £22,400, Torfaen by £14,546, Monmouthshire by £14,109, Blaenau Gwent by £11,055 and Caerphilly by £10,618.

A report due to be discussed by the Gwent Archives joint committee says savings have been made over recent years, but these have not been enough to cover increased costs.

These are linked to pay and pension related rises, changes in staffing, general inflationary pressures and building service charges.

This year’s budget is showing a forecast overspend of £84,000 against the building premises, mainly due to service charges.

The building lease requires that Gwent Archives pay 33.31 per cent of the shared areas building costs on top of the 100 per cent that it pays for the space it occupies at Ebbw Vale’s General Offices.

The archives has vacated two of its rooms at the General Offices, saving around £17,500 in relation to rent, rates and running costs and a further saving in the service charge.

Reserves have also been used to cover costs in previous years, but a report says the ‘concern’ is they are being ‘eroded.’ The reserve level of the archives was £305,376 at the end of March, with £118,741 of this expected to be spent on covering this year’s budget overspend.

A report says: “The service has taken all possible steps to reduce expenditure including the recent surrender of rooms as well as seeking new income and using reserves to absorb annual inflationary pressures.

“Following a seven year freeze in respect of joint authorities funding, the service is looking for a contribution increase of £72,728 to cover the required budget so that it is able to deliver its statutory duties.”

The report says the archives will also need to request a further annual increase of £20,000 to cover pay and inflation after next year.

The Gwent Archives joint committee will discuss the proposal to seek an increase in contributions at a meeting on Friday.