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Peter Black and South Wales West Liberal DemocratsRepresenting Aberavon, Bridgend, Gower, Neath, Ogmore, Port Talbot, and Swansea |
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Five reasons why the Welsh Government budget lets down Wales
January 7, 2008 12:00 AM
By Peter Black in Glamorgan Gazette
By Peter Black in Glamorgan Gazette
In the next few weeks the Labour/Plaid Cymru One Wales Government will be putting the final touches to their budget for the next financial year.
There are of course flaws in the way that money is paid to the Welsh Assembly Government from Westminster in that it is not based on any assessment of Wales? needs.
It is also the case that the amount of money the Welsh Government have received this year is hardly adequate to meet the demands being made on it, but that is a problem of Labour and Plaid?s own making.
They have committed themselves to a number of new initiatives at a time when money is tight and as a result existing expenditure on vital services has suffered.
There are five reasons why the present draft budget is unacceptable and why it needs to be changed before it is finalised.
Firstly, it contains a pathetic settlement for local government. The Welsh Local Government Association is in uproar, even Labour group leaders say the budget is ?deliberately punitive to local authorities.? The Welsh Government received a 3.4% increase, inflation is running at 2.7% but they have given Councils only 2.3% on average. Local government delivers key services in Wales including education, social services, refuse collection, roads and leisure facilities. These will suffer under this budget.
Secondly, this budget is likely to force council tax to go up. Local government leaders agree that the settlement will force them to raise council tax. In effect, council taxpayers are picking up the tab for the One Wales agreement. Council tax is an unfair tax which has a disproportionate impact on the least well off.
Thirdly, there is a lack of transparency. The Finance Committee report was scathing about the lack of transparency in the budget ? particularly on the capital budget.
Fourthly, there continues to be an education funding gap. Labour and Plaid Cymru no longer accept that Welsh universities are worse off than their English and Scottish counterparts. The Higher Education Funding Council for Wales estimates a ?41million gap with England and a ?93million gap with Scotland. Labour and Plaid deny that there is a school funding gap too. The figures say otherwise.
Fifthly, the budget stockpiles unallocated reserves. Over three years unallocated reserves will leap from less than 1% to more than 4.9%. Some of that cash is earmarked for spending by the new strategic capital investment board. However, with all ministers expecting large scale investments from the pot, it is far from clear if the pot is big enough, or if Ministers will be disappointed.
The verdict is that the Government could do better. However, it is the people of Wales who will suffer for their failures.
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