10 November 2008
Wales’ 22 council leaders have made a unanimous call to the Welsh Assembly Government to take bold action to help council tax payers across Wales and to re-visit its ‘One Wales’ programme in view of the current economic recession.
The Welsh Assembly Government “top slices” a 1% efficiency saving from the local government settlement, however, the WLGA is today calling for this money - £38m and which is equivalent to a 4% council tax rise across Wales - to be re-invested into the pockets of council tax payers by helping councils to keep council tax rises to a minimum. Indeed, this call is in tune with recent remarks made by the Prime Minister, Gordon Brown on the ‘need for fiscal stimulus to support interest rate cuts.’
Today’s call follows another poor provisional local government settlement and if additional help is not forthcoming then council leaders will be forced to explore the possibility of a uniform council tax rise of 5% across Wales to make up for this severe funding shortfall.
Cllr John Davies (Pembrokeshire), WLGA leader, said
“Despite all the positive discussions held at the recent Welsh Economic Summit, the most immediate and radical move that the Assembly Government can make is to help local government to set lower levels of council tax in Wales by properly funding a “ceiling” for rises well below current inflation levels running at 5.2%. In terms of immediate benefit to our communities this would be welcomed across Wales and would have a real impact. The Assembly Government has a real opportunity to do this before it finalises its budget in December.”
“Re-investing the £38m in efficiency gains or a large proportion of it directly into the hands of council tax payers is a “win win” outcome. It would be Wales’ own unique contribution to helping people who are suffering from higher bills and financial problems but would also show the concerted effort of all tiers of elected government in Wales to help their communities. Councils already make massive efficiencies over and above what is expected of them and the public can feel assured that their services won’t suffer as a result. In the words spoken by the Chancellor of the Exchequer, Alistair Darling, now is the time to inject more money into the wider economy.”
Cllr Rodney Berman (Cardiff) WLGA Finance spokesperson said
“In the light of the economic recession we also call on the Assembly Government to revisit its “One Wales” programme and priorities. There has been concern in some quarters of local government that the existing commitments in ‘One Wales’ may not be affordable. Now, in the light of the current economic downturn it is timely to review this programme which is nearly two years old and which was outlined during significantly more buoyant economic times.”
“The gloomy forecasts for the economy - rising unemployment, inflationary pressures and negative growth - mean that government priorities need to be reassessed and attention needs to focus on prioritising resources into frontline services particularly housing, social care, waste and education.”
“As the Assembly Government budget diminishes further in future years it is essential for all parts of the public sector in Wales to think through the implications of this and properly gauge how to sustain and manage a growing gap between levels of funding and the minimum level of expenditure required to maintain present services. This debate is much needed with the Welsh Assembly Government and amongst its partners.”
For more information contact: Natasha Weeks