07 October 2008
The publication of today’s draft Assembly Government Budget and the 2.8% increase for local government again shows that key public services continue to fall off the radar of devolved government in Wales.
Cllr John Davies (Pembrokeshire), WLGA Leader said:
“Local government recognises that the public finances have shrunk in recent years, resulting in difficult choices for the Assembly Government, yet this does not detract from the fact that it is making the wrong choices for the people of Wales who value their local services.
“Local Government’s increase is by no means comparable with the Welsh NHS which for the second year has received an inflation busting increase of 5.3%, not forgetting the millions of pounds worth of deficits that have been written off. This is a far cry away from what some of the most pressurised local government services will receive such as social services, housing and schools. It is totally bemusing that the Assembly Cabinet continues to treat local government as the “Cinderella” of Welsh public services when all the evidence points to the fact that our services are central to the quality of life for our communities. More investment in local government services could reduce the demand for NHS services.
“However, one welcome spotlight in today’s draft budget is the additional funding that has been allocated to support the foundation phase in Wales. The WLGA have worked closely with the Minister Jane Hutt over the recent period on mapping these costs and we thank her for all her efforts. Following the problems of last year this shows us at our best, working as partners to address a key issue and ensuring the proper funding of this innovative scheme.
In these exceptionally difficult times local government is doing everything possible to keep council tax levels below the inflation rate which is edging towards 5%. We do not want to shift costs onto our communities at this time of economic hardship where families are already experiencing huge increases in utilities and gas bills. These are extraordinarily challenging times for local government with councils being forced to make some very hard and difficult choices. We await the outcome of next week’s local government settlement before we seek talks with the Assembly Government on a way forward for tackling these current economic problems and those that lie ahead. Today we have argued for a range of proposals which need urgent attention.”
Cllr Rodney Berman (Cardiff), WLGA finance spokesperson said:
“Every council in Wales will have a settlement well below the level of inflation now running at nearly 5%. Last year’s indicative budget shows that councils in the poorest valleys areas such as Blaenau Gwent and Torfaen, north Wales such as Conwy, Ynys Mon and Gwynedd and across mid Wales will see individual settlements as low as 0% . The limited uplift for local government provides too little recognition of the huge inflationary pressures on local services. The extra £10m will not meet the increased cost of oil prices from the past year and with gas and electricity contracts rising by 100% across Wales this figure is a mere drop in the ocean. Perhaps, the Assembly Government can tell us what areas they wish to cut and also call a halt to expensive and underfunded initiatives which are being placed on local government and which are no longer affordable. It is a smokescreen for Assembly Government Ministers to argue that the global problem of inflation can be solved by Welsh councils collaborating together. It clearly is not held to be true in the NHS, why is it argued for local government?”
Cllr Michael Jones (Powys), WLGA Deputy Finance spokesperson said:
“This amounts to another body blow for rural Wales. The decision taken by Powys to save on street lighting has attracted much attention. This is a signal on our part that we cannot keep expanding services in the current climate and that local government is subject to all the pressures faced in the wider economy. The WLGA are pressing for a special grant for rural authorities which are often forgotten in Assembly thinking.”
For more information contact: Natasha Weeks