WLGA Leader's Update - Issue 04
05 December 2011
CONTENTS
1. Compact for Change between Welsh Government and Welsh Local Government
1. Compact for Change between Welsh Government and Welsh Local Government
The Compact was discussed by the 22 leaders at the WLGA Coordinating Committee on 25th November and a clear view emerged. In general, members felt that with some alterations the broad thrust of the three Implementation Contracts were broadly acceptable.
The narrative opening to the Compact however was not as popular. Members felt the tone of the document was threatening, did not reflect a partnership approach and the constant recourse to Assembly reserve powers almost negated the need to sign an agreement. It was the view of council leaders that this would need to change substantially before any progress could be made. Equally, Leaders were firm in the view that, because the Compact represented a potentially radical challenge to the future delivery of services and their configuration, it must be signed off by individual councils. There was also some discussion about what would happen if not all councils but a majority approved the Compact.
Changes have now been made to the Compact and a consensus appears to be emerging that the revised document is much more fit for purpose. This will be debated with the Minister at the Partnership Council on 5th December 2011. A number of Councils have programmed discussions on the Compact in December, although logistically in terms of the Committee cycles some will slip into the New Year.
Contact: Steve Thomas, WLGA Chief Executive, 02920 468610/ steve.thomas@wlga.gov.uk
2. Workforce Issues
Pay Negotiations 2012
A pay consultation briefing was held in Builth Wells on Thursday 17th November where 16 authorities were represented. It was one of eleven such meetings taking place across England, Wales and Northern Ireland. The meeting received a presentation from Harry Honnor, LGE which covered the background and context for this year’s pay negotiations.
Following much debate it was fully recognised the pressures that fall on the workforce particularly the lower paid. Within the current context of the settlement and economic uncertainty the emphasis was on retaining jobs and avoiding compulsory redundancies and a pay offer would impact on this strategy. It was acknowledged that this position could not be sustained in the long term and 2012 – 13 should be the last year of a pay freeze.
Pensions
Members discussed a report on pensions at October’s Council meeting. They discussed Central Government’s proposed 3.2% increase in employee contributions (to be staged over 3 years from 2012/13) for the LGPS (equivalent to savings of £900 million), as part of its approach to employees ‘paying more’ across the whole public sector. Two options were discussed with members agreeing that Option Two was the preferred option for the association’s response to the consultation which closes on 6th January 2012.
Contact: Jonathan Lloyd, Employment Advisor, 02920 468644/ jonathan.lloyd@wlga.gov.uk
3. Boosting Capital Capacity
Discussions have been taking place between the WLGA and Welsh Government to explore ways in which support can be given to local authorities to boost their capital investment and provide a local economic stimulus.
The Minister for Finance and Leader of the House announced on 22 November 2011 that an initial scheme was in development. The outcome of our negotiations is a proposed ‘pilot’ scheme that would allow local government to increase its capital spending on the highways network. Under the scheme the Welsh Government would increase the revenue Support Grant (RSG) to help councils meet increasing revenue pressures, while optimising levels of unsupported borrowing in support of shared infrastructure priorities. In particular, this help would take the form of ongoing funding to address revenue pressures, allowing local authorities to switch resources into capital investment programmes. The funding would be available over an agreed period. In return, local government would ensure that capital investment programmes financed with newly released funds would be additional to planned capital investment and would be used to finance shared and mutually agreed capital investment priorities. At this stage it is anticipated that the scheme could generate between £100-£170 million investment over the current Spending Review period. If successful the Welsh Government will look to extend the scheme to other areas of local government infrastructure in the future.
WLGA Coordinating Committee gave in principle support for the pilot scheme on 25 November and WLGA continues to work with the Welsh Government to develop the operational details.
Contact: Tim Peppin, Director of Regeneration and Sustainable Development, 02920 468669/ Tim.peppin@wlga.gov.uk