I actually welcome the Cabinet Secretary’s final local government settlement for 2017-18, and we also welcome the commitment to a funding floor for local government settlements, as outlined in the programme for government. This, of course, complements the Barnett formula funding floor introduced by the UK Government and we hope that this will lead to some longer-term financial stability for our local authorities. This is the first increase in the settlement for four years, but of course it doesn’t compensate whatsoever for the £299 million that have been taken out of local government budgets since 2013.

I would actually agree with the Member Sian Gwenllian when she talks about indicative budget, because I know when I meet with council leaders and chief executives, they would like longer-term financial planning. I think in any business environment, you would want some indications as to what your settlement in going to be. The Wales Audit Office notes that, since 2010, local authorities in Wales have faced a real terms reduction of £761 million in aggregate external finance, which forms the bulk of its general revenue funding, including this year’s settlement. That’s cuts of around 7 per cent since 2013-14. However, in Powys, we see 10.88 per cent cuts; Monmouthshire, 9.98 per cent. Yet the eight local authorities who have faced the lowest cuts to their budgets—surprise, surprise—are all Labour led. These cuts have seen regulatory services spending slashed—planning, environmental health and food safety teams. All these have a significant role in the protection and well-being of our local residents.

We have called for years for a fundamental review of the funding formula. The standard spending assessment unit for a secondary school pupil in years 7-11 is over three times that of a pensioner aged 85 or over, and over 6.7 times that of a person with severe disablement. In an ever-aging society, and with so much evidence pointing to the need for a massive increase in spending on social care, it is disappointing that this is not addressed through the formula, by the Welsh Government, on an annual basis by the means of a fundamental review. Figures for dispersion, settlement and population thresholds are from data taken from 1991. And the deprivation grant was taken in 2000—during the millennium. Basing our local authority spend and requirements on such out of date figures is not boding well for our citizens in Wales.

Whilst welcoming the £25 million for social care, it must be remembered that a recent Health Foundation review on social care found that pressures on their budgets will require the budget to double over the next 14 years. Further, Cabinet Secretary, council tax in Wales has risen by, on average, 3.6 per cent in 2016-17. In 2016, Ceredigion, Pembrokeshire and Conwy have increased their council tax by an inflation-bursting 5 per cent—higher than all but three councils in England and Scotland. The average band D property is now liable for £1,374, yet in 1997, when you came into power, it would have been £495. Council tax in Wales has risen by 178 per cent under Welsh Labour. I understand, Minister, that you’ve mentioned previously that you would be reviewing council tax in Wales, and I would ask you, really, to outline some of your thoughts on how you intend to do this, moving forward.

Between 2011-12 and 2015-16, the Welsh Government received over £94 million in consequential funding as a result of the UK Government’s decision to provide grants for council tax freezes in England, but your Government, sadly, refused to utilise this money. It is a fact that council tax payers in Wales now pay the highest proportion of council tax in mainland Britain—in 2015—and Citizens Advice label council tax now as Wales’s biggest debt problem for the second year running. Cabinet Secretary, the Welsh Government has committed to undertaking this review, and I would really urge you to come forward.

Of course, the finger of blame is always pointed at UK Government austerity measures. Well, that argument is wearing rather thin now, given that it was the overspending policies of the previous Labour Government that have led to such measures being implemented. Let us not forget: £15 billion comes into Wales from the Treasury for a population of three million people. This is a devolved budget. You get the money, you set the priorities. These are your priorities. Please do not blame the UK Government for how you decide to spend your money. Thank you.