Welsh councils receive better than anticipated £3.5bn

3 Nov 05
As the Local Government Association in England locked horns with the Office of the Deputy Prime Minister over the forthcoming financial settlement, Welsh councils have already been told how much money they will receive from the Welsh Assembly Government next year.

04 November 2005

As the Local Government Association in England locked horns with the Office of the Deputy Prime Minister over the forthcoming financial settlement, Welsh councils have already been told how much money they will receive from the Welsh Assembly Government next year.

The Welsh Local Government Association said the £3.5bn its members will receive is 'better than anticipated', but some councils will still feel the pinch.

Local Government Minister Sue Essex said: 'The money represents an increase of 5.1 % on last year's settlement. This is well above the rate of inflation and represents a good deal for councils across Wales.

'The settlement includes an extra £45m for local authorities to address social care pressures that stem from delivering higher standards of care and more social care for older people in their own homes and communities.'

WLGA leader Derek Vaughan said: 'While we have managed to achieve a reasonable overall settlement for 2006/07 with lower variations from council to council, there are still some local authorities that will find it particularly challenging.'

He singled out Cardiff and Wrexham, which will receive below average funding increases of 3.8% and 3.7% respectively.

The settlement should help councils avoid large council tax increases, but Vaughan added that funding pressures still remained for highways maintenance, waste management and children's services.

PFnov2005

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