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Peter Black a Democratiaid Rhyddfrydol Gorllewin De CymruYn cynrychioli Aberafan, Pen-y-bont ar Ogwr, Castell-nedd, Ogwr, Port Talbot ac Abertawe |
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The local Government settlement 2009-2010
2009 Ionawr 13 12:00 AM
Gan Peter Black yn Plenary
Gan Peter Black yn Plenary
Peter Black: The Welsh Liberal Democrats have several concerns about the local government settlement. These were chiefly summed up in the amendment that we tabled, which we understand is not going to be taken. I shall leave that to you, Presiding Officer.
The Presiding Officer: It was not a case of it not being taken; it was deselected, as is customary with amendments to financial motions.
Peter Black: Thank you for that clarification, Presiding Officer. I think that the outcome is the same, but thank you for that clarification.
The Presiding Officer: Order. I do not want to fall out with you, but, with respect, it is not the same.
Peter Black: Our concerns are, first, that this local government settlement will increase the council tax burden on those already struggling to cope with the effects of the economic downturn.
Secondly, and this is borne out by the various budget discussions going on in councils all over Wales, this will lead to cuts in front-line services and jobs. That is the last thing that we need when Wales is struggling with record levels of unemployment, certainly under this Government, when people are struggling to make ends meet, when we are seeing job losses almost daily or weekly, and when people are struggling even to hold on to their own home. It was notable from recent figures that the Liberal Democrats have obtained, that the number of bailiff visits as a result of unpaid council tax is increasing exponentially. Many of these visits are also leading, effectively, to bankruptcy and to repossession. There is evidence that many people are struggling to pay their council tax. Therefore, the last thing we need is for this burden to be imposed upon people by the Welsh Assembly Government.
I was fascinated by Dai Lloyd's argument. He talked about where we should lay the blame. He said that local government is getting a poor settlement because of the global economy, so it is all George Bush's fault.
If we get increased funding under the Barnett formula, as Dai Lloyd is arguing for, will that money be passed on? If we look at the evidence that we have in front of us, the money that this Assembly Government is already getting from the Westminster Government-a 4.6 per cent increase-is not being passed on to local government. Instead, local government is getting just over 3 per cent, effectively putting it in a very difficult situation when it comes to putting its budgets together.
I will quote the deputy leader of the Welsh Local Government Association, a Labour councillor. Not necessarily talking about his own authority, he set out in stark terms, in a press release at the end of last year, the impact of this budget on local councils. Referring to the provisional settlement-and this settlement is not much different from that-he said that it was:
'a cuts budget and the choices are stark. Rhondda Cynon Taf will see an increase of £2.3m on gas and electricity including an extra £511,000 for street-lighting. Torfaen's energy costs rise by £1.6m and the authority is already seeing a significant drop in land sales and therefore Section 106 agreements which bring income into the authority. My own authority Neath Port Talbot is facing an energy hike on 12 month contracts of £1.6m and a budget shortfall of £5m. Perhaps worst of all is the predicament facing Blaenau Gwent. The poorest Valleys authority is projecting a £4m shortfall on the revenue budget and the £1.7m increase in its energy bill alone will wipe out any increase in Assembly Government funding. Such pressures will threaten jobs.'
Clearly, no-one expects the Assembly Government to pick up the whole tab, but we could expect the increase that it gets from Westminster to be passed on to local government. The impact that Derek Vaughan outlined in his press release would certainly be easier to manage if local government were getting that extra money-as Dai Lloyd said, it is worth an extra £5 million to Neath Port Talbot council, and it is worth millions of pounds to other councils across Wales. Local councils are faced with some very stark choices over the next few months. They will obviously try their best to keep council tax down. However, most of them have, effectively, used up their usable balances in trying to accommodate last year's settlement, which was equally as bad, and have very few balances-certainly very few uncommitted balances-to call on. They find themselves, effectively, having to make cuts in jobs and front-line services in order to make ends meet. We are faced with a dreadful settlement from this Government, which has put local government in a very difficult situation. People will blame the Government when they get their council tax bills and when they see the impact of those cuts because it has failed to pass on the money that it has received from the Westminster Government.