Janet Finch-Saunders AM:

Will the First Minister make a statement on the financial performance of town and community councils in Wales?

First Minister:

Yes. I welcome the Auditor General for Wales's most recent assessment that progress has been made in improving financial performance, but that town and community councils still need to do more to ensure they have robust accountability arrangements in place. 

Janet Finch-Saunders AM:

Thank you, First Minister. I'm glad that you've read the report. But, as you rightly pointed out, the auditor general has raised several concerns. One thing, in particular, though: local council reserves currently stand at £41.5 million. This is money that taxpayers have paid through a council precept to provide services for them. He also noted that community councils in Wales are receiving avoidable qualified audit opinions—over 170—and 81 councils failed to comply with the statutory timetable for publishing their accounts, and 174 submitted incomplete returns. Now, I know there's an ongoing community council review, cross-party, and I was working with the previous Cabinet Secretary on that. The consultation process, though, is extremely vague, and it doesn't seek to address the fiundamental issues of financial probity and auditable accountability, which the auditor general feels the need to raise year on year. Will you work with your Cabinet Secretary in order to address the failings of this particular level of democratic governance?

First Minister:

I think we should be careful not to attribute failings to every town and community council. We know that there are some that have struggled, we know that there are some that are very small—very, very small—and, sometimes, it’s difficult to see how they manage from time to time, but they seem to.

In terms of the review panel, well, just to be clear, the remit of that panel is to explore the potential role of local government below local authority councils, drawing on best practice to define the most appropriate models or structures to deliver this role, and to consider how those models and structures should be applied across Wales. Now, as part of that, of course, financial sustainability is an important factor. The panel is currently gathering evidence and seeking views from community councils, yes, but also the communities that they serve and the people that they work with. And, indeed, the panel have already taken evidence from the Wales Audit Office.