07 October 2005
Welsh local government leaders are demanding financial help directly from the Treasury to plug the funding gap they claim has been created by a delay in publishing the results of Sir Michael Lyons' council tax inquiry until 2006.
The Welsh Local Government Association, holding its annual conference in Swansea this week, is calling for an extension to the existing transitional relief put in place following the revaluation that came into effect in April.
It says the move, which it claims would cost £11m per year, is necessary to ensure that householders whose properties went up a number of bands in the revaluation can continue to move up one band at a time.
The existing transitional relief scheme is in place only until 2007; the WLGA had hoped that local taxation reforms arising from the Lyons inquiry would take effect thereafter. The delay means that timetable is no longer feasible.
WLGA leader Alex Aldridge, who is stepping down from the post from next week for health reasons, told the conference that the decision would have a 'major impact' on town hall finances in Wales.
'We awaited the review with eager anticipation, not only for wisdom on the future of funding but because the framework for financing local government is set in Westminster, not Wales,' he said.
'As a result, the WLGA is calling upon the Treasury — and I emphasise not the Assembly government — to provide greater transitional relief in Wales to cap further band rises until Sir Michael reports.'
PFoct2005
