WLGA calls on the Assembly to act now to help council tax payers
07 October 2008
Given the turbulent financial markets and the growing impact of rising costs on communities throughout Wales, the WLGA leadership seeks to cushion any further cost pressures on the Welsh public by minimising next year’s council tax increases.
Councillor Rodney Berman (Cardiff), WLGA Finance spokesperson said:
“Council tax is the only tax raised directly in Wales and it is in the gift of both the Assembly Government and local government to seek to protect council tax payers from large rises.
Local Government in Wales has produced audited efficiency gains that have exceeded the public sector efficiency targets. On top of this, the annual local government settlement discussions assume a 1% efficiency saving from the revenue support grant which equates to approximately £38 million per annum. This is broadly equivalent to an increase of 4% on council tax bills across Wales each year. In this current financial climate, if the Assembly Government were to return this funding to Councils, it would help prevent further additional burdens on council tax payers who are already feeling the pinch.
This is not an attempt by Councils to avoid the efficiency agenda but rather a way of delivering the benefits of Councils’ efficiency gains directly to Welsh council tax payers. The reality is that councils have had to achieve far in excess of 1% efficiency savings in order to balance their budgets year on year, and will continue to do so in the foreseeable future. What we’re asking for now is a re-investment of cash to help minimise council tax increases - perhaps in this context, the Assembly Government would wish to consider its balances which are expected to rise to almost £500 million by March 2011.
Extraordinary times demand imaginative solutions. Earlier today we called for a new Welsh National Economic Council to steer Wales through the current economic crisis. Releasing this additional funding is another way of ensuring that the public sector plays a full part in easing people through the current and severe economic difficulties.”