Debate: The Local Government Settlement 2015-16
15:45
Janet Finch-Saunders
Thank you, Minister, for your introduction to the local government settlement for 2015-16. I echo your own concerns that this is a challenging time for our local authorities across Wales, as they are now faced with deciding how they will cope with demands and what services they are still able to continue delivering. Council leaders have warned you—and warned us all, really—that cuts of £146 million to the overall local government budget will damage the social fabric of our communities across Wales. I think, really, disappointment has been shown by some authorities that, whilst you have your formula and your ways of sorting it out—and I know that it is in the green book—we have seen sort of a better settlement provision, shall we say, in Labour-run councils. [Interruption.] Oh, yes we have; yes we have. I mean, if you look at those that, you know, have faced cuts of 2.5%, and look at Conservative-led Monmouthshire facing a 4.3% cut. And it is imperative—
15:46
Alun Davies
Will you take an intervention on this?
15:46
Janet Finch-Saunders
Yes.
15:46
Alun Davies
Is the real differrence not between authorities in Wales but between Wales and England? Where Welsh authorities have seen a 7.6% reduction in their funding, in England the same figure is nearly 40%.
15:47
Janet Finch-Saunders
I’m not talking about England; I’m talking about this formula and the distribution of the settlement funding, and how an authority like Monmouthshire, which is a very transparent authority publishing everything online, is seen to be penalised, actually, with the level of settlement that it’s had. A letter from the leader of Conwy County Borough Council, which you have actually kindly addressed, called for the introduction of a floor and a ceiling to be applied to the formula in order to produce a narrower range of movement. The WLGA see the formula as outdated. I have to say that I am very pleased that your local government reform White Paper coming forward has a pledge to look at the funding formula.
This harsh settlement—let’s be honest—is a product of years of the Welsh Labour Government’s underfunding of the health budget. So, now, you are having to drastically address those years of constant underfunding. The Welsh Government has prioritised resources on health, which was well overdue, but I do fear—and I am not alone; we have taken evidence on this in committee—that some of these cuts that will have to be taken by local authorities will actually affect the very intervention services and vital services that actually will impact in a negative manner. Council tax in Wales has already risen by over 150%. That is largely down to choice since 1997. [Interruption.] That is largely down to choices made by the Welsh Labour Government, which did, for three years, receive Barnett consequential to freeze council tax but instead decided to keep it for their own pet projects. Had you have applied that—
15:49
Leighton Andrews
Is the Member aware that, in England, 30 Conservative councils are not going to freeze council tax, despite the money that they have got from Eric Pickles?
15:49
Janet Finch-Saunders
Well, that’s up to England. [Interruption.] I represent a constituency in Wales, and my residents in Aberconwy have been failed by your Labour Government and the successive council tax increases that you have, you know, put on. Residents would be £149 a year better off if you would have actually—
15:49
Leighton Andrews
Council tax rates are lower in those areas.
15:49
Janet Finch-Saunders
15:49
The Deputy Presiding Officer
Order. I have four Members of the Labour group to be called, and then the Minister will reply. So, you don’t need to have a conversation amongst yourselves when one of the speakers is on her feet. Janet Finch-Saunders.
15:49
Janet Finch-Saunders
Thank you. Whilst we don’t say that you should be interfering in local authorities, there should be some guidance and leadership. One thing that is crucial now is that we need to see efficiencies, we need to see transparency and we need to see accountability. I think it's fair to say that, in the last 12 months to two years, under Welsh Labour, some local authorities, frankly, have gone their own way. We've seen, you know, that payments—senior level payments—are extortionate. We've seen closed-door meetings where people have written their own reports and we've seen unlawful practice in some authorities. Again, I will refer to Monmouthshire council. They publish everything online and they are a very transparent authority. Because of the tight budgets facing our authorities, they've entered into engagement processes with their residents.
You know, I will just finish off, really—. Bob Wellington, leader of Welsh local government said:
‘Austerity is set to last well into the future and we urgently need our national politicians to show leadership, to support the difficult decisions made…and to start setting clear and realistic priorities for public services in Wales as a whole…. The financial issues—
15:51
The Deputy Presiding Officer
Finish quickly now.
15:51
Janet Finch-Saunders
[Continues.]—affecting local government will impact on us all.’