16 November 2007
Welsh council leaders hit out at an 'inadequate' settlement for local government this week, warning that council tax rises and service cuts would be inevitable.
Derek Vaughan, leader of the Welsh Local Government Association, said the provisional 2.3% rise for next year, which was published on November 14, would make it impossible for councils to avoid cuts to vital frontline services such as education and social care.
'Every council across Wales wants to protect their frontline services and their main concern is to minimise the impact on the public,' he said.
'The draft budget will not allow us to do that. Unless the Assembly government can find some way to increase the funding to local councils, we are going to see sharp increases in council tax across Wales, possible job losses and cuts to key frontline services such as schools, roads and social care.'
The settlement awards local authorities in Wales an increase of 2.3%, 2.6% and 2.8% in each of the next three years.
Minister for Social Justice and Local Government Brian Gibbons said: 'This is a realistic provisional settlement for local government in what is a tight three-year budget. In common with the rest of the public sector in Wales, local government is expected to make efficiency savings.'
Ministers pointed out that, in addition to the revenue support grant, councils would receive a wide range of additional specific grants, which would provide extra funding for key areas such as early-years' education, free bus travel and waste management.
Finance Minister Andrew Davies said the extra specific grants would raise the settlement increase to 3.2%.
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