23 October 2008
Valleys councils are receiving some of the lowest funding increases in Wales, despite the fact the Assembly Government itself says funding should be concentrated in this area to regenerate some of Wales’ most deprived communities.
Valleys councils, who work in partnership with the Assembly Government on the Heads of the Valleys programme, find themselves severely penalised on mainstream core revenue funding with an average settlement increase of only 2.1%; this compares with the all-Wales average of 2.9% and is less than half the current inflation level of 5.3%.
Councillor Derek Vaughan (Neath Port Talbot), WLGA Deputy Leader said:
“The provisional settlement is a cuts budget and the choices are stark. Rhondda Cynon Taf will see an increase of £2.3m on gas and electricity including an extra £511, 000 for street-lighting. Torfaen’s energy costs rise by £1.6m and the authority is already seeing a significant drop in land sales and therefore Section 106 agreements which bring income into the authority. My own authority Neath Port Talbot is facing an energy hike on 12 month contracts of £1.6m and a budget shortfall of £5m. Perhaps worst of all is the predicament facing Blaenau Gwent. The poorest Valleys authority is projecting a £4m shortfall on the revenue budget and the £1.7m increase in its energy bill alone will wipe out any increase in Assembly Government funding. Such pressures will threaten jobs.”
Councils are by far the largest employers in the South Wales valleys and these six authorities alone employ 50,000 people. Council jobs are the bedrock of employment and the local economy in the valleys and include school teachers, social workers, leisure officers, librarians, environmental health officers and many more. It is more than likely that in every valleys street or community, somebody is employed by the local council.
It is therefore vital that in the coming recession we sustain the public sector workforce. More than one in twenty people who are 'economically active' are now out of work. The position in the unemployment 'hot spots' of Wales is even worse, with 7.4% in Blaenau Gwent and 6% in Merthyr Tydfil claiming benefit.
Valleys leaders will meet with council leaders from across Wales at the WLGA Coordinating Committee in Llandrindod Wells on Friday. The WLGA is awaiting a response to last week’s call for emergency talks on the funding crisis with the Assembly Government.
Notes for Editors
The provisional local government settlement increases for Valleys authorities are:
Blaenau Gwent 1.5% (floor funding)
Rhondda Cynon Taf 1.7%
Neath Port Talbot 2.2%
Merthyr Tydfil 2.3%
Torfaen 2.4%
Caerphilly 2.7%
ENDS
For more information contact: Natasha Weeks