Questions to Minister for Local Government
Spokespersons Questions
Questions Without Notice from Party Spokespeople

14:22
The Presiding Officer
First this afternoon, we have the opposition spokesperson, Janet Finch-Saunders.

14:22
Janet Finch-Saunders
Thank you, Presiding Officer. Minister, local authorities are now facing unprecedented cuts imposed by your Welsh Government. The WLGA estimates that the savings required by 2018 to be in the region of £990 million across 22 local authorities. How do you envisage that local authorities in their current form will manage these cuts?

14:22
Leighton Andrews
As I understand it, yesterday, your Prime Minister ruled out a fairer funding settlement for Wales. [Interruption.]

14:22
Janet Finch-Saunders
Answer the question.

14:22
Leighton Andrews
The reality, of course—

14:22
The Presiding Officer
Order. I beg your pardon?

14:22
Janet Finch-Saunders
He is not answering the question.

14:22
The Presiding Officer
The Minister is answering. You may not like his answer, but he is answering. Minister, please continue.

14:22
Leighton Andrews
The reality is that the Welsh Government’s budget has been cut by £1.5 billion in real terms, as a result of the politics of your Government. [Interruption.] We are seeking to provide a fair settlement across Wales for local government. [Interruption.]

14:23
The Presiding Officer
Order. I would like to listen to the next question from the oppostition spokesperson. I call on Janet Finch-Saunders.

14:23
Janet Finch-Saunders
Thank you, and thank you for that answer, Minister. Your predecessor stated that local authorities in Wales were well aware that these cuts were forthcoming and inevitable, and that local authorities should have been preparing themselves for this. Do you agree with this opinion, and, if so, are you saying that local authorities will still have the capacity—or should have—to work smarter, and more efficiently and innovatively than at present?

14:23
Leighton Andrews
Well, we know that the reality is that local government enjoyed significant real-terms increases in the early part of devolution. We also know, of course, that this Welsh Government, during this current spending settlement, has been able to protect local government in Wales far better than it has been protected across the border in England. In fact, there has been a 3% increase in cash terms, compared with a 7% decrease in cash terms in England.
 
14:24
Janet Finch-Saunders
Minister, there is reportedly £1 billion in reserves held by the 22 local authorities across Wales, often rolled over. In some cases, this equates to a fifth of their own budget. With talk of voluntary mergers and local government reform high on your agenda, are you expecting these reserves to be practically sustainable in the future?

14:24
Leighton Andrews
As I said earlier, the issue of reserves is a matter that we expect local authorities to engage with. It is certainly the case, as I said in the media just a week or so back, that some local authorities—and I think that I am right in saying that it is seven—have reserves equivalent to 20% of their budget. Some of those will clearly be hypothecated against future spending commitments, and we understand that, but it is important that all local authorities make an appropriate judgment about the use of their reserves.

Janet Finch-Saunders
Minister, the reforms, as outlined, look unlikely to be implemented before the end of the Assembly term. Recent headlines, however, suggest that Caerphilly Labour councillors will not select Assembly candidates who back the proposed mergers. With this kind of dissent within Labour Party ranks, will this not have a negative impact on your own priorities for local government reform before the next Assembly elections?

14:41
Leighton Andrews
I have read press reports about dissent in all political parties at different stages. I am sure that we will see a number of proposals being brought forward by authorities that are controlled by the Labour Party, just as I hope we may see a proposal brought forward by the authority controlled by the Conservative Party and, indeed, by other parties as well and by independents. I think that basing proposals for the future on press speculation is probably unwise for anyone.