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Will the Minister make a statement on the extra £36 million announced for the Welsh Government in the UK Government’s 2014 Budget Statement?

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Wednesday, 26 March, 2014

Will the Minister make a statement on the extra £36 million announced for the Welsh Government in the UK Government’s 2014 Budget Statement? 

 

Janet Finch-Saunders;Minister, I am sure that you will join me in welcoming the extra £36 million that is coming to Wales as a result of the UK Government budget statement last week. Between 1997 and 2014, council tax in Wales has increased by a staggering 148%. In 1997, the average band D council tax was £495; now, that is more around £1,226. Some £38.9 million was given to Wales to freeze council tax. Minister, what plans do you have in place to prevent the constant, year-on-year, council tax increases, and would you consider allocating some of this £36 million to allow for a council tax reduction, or even a freeze, here in Wales?

 

Jane Hutt; I wish I could join you in welcoming a consequential. Yes, we did get a positive consequential of £36 million in the budget last week, but, of course, we also got a bill. We got a bill for at least another £70 million over a two-year period to bear additional costs in terms of public sector pensions, which, of course, we would honour. Furthermore, we have still to endure a 31% cut in real terms to our capital budget between 2009-10 and 2015-16. It is quite clear that, if you were in charge, local government in Wales would bear a cut, and not only bear a cut itself in terms of allocation from your budgetary prospects, but also to education and schools, where we have maintained that 1% safeguard.

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