05 January 2007
Welsh finance ministers have acknowledged the additional pressures on councils and built an extra £2.2m into the local government settlement.
The final details, announced by Finance Minister Sue Essex on December 20, increased the provisional settlement by 0.1%.
An extra £0.5m was added to the £2.5m already built into the provisional settlement in recognition of the increased costs of foster care allowances. An extra £1.7m was added to the £6m included to help children with autism and special educational needs.
Essex said: 'I worked in partnership with local government to recognise the funding pressures they face.'
The settlement amounts to £3.7bn in total, and represents an annual increase in funding of 4.4% — well above the rate of inflation. Essex described it as a 'good and reasonable' settlement for councils.
'I am confident that unitary and police authorities will be as reasonable in setting budgets as they have been over the past two years,' she said.
'It is my view that council tax increases should not exceed 5% in 2007/08. I will monitor the position carefully and will take appropriate action to keep council tax increases at reasonable levels.'
PFjan2007
