6. Debate: The Local Government Settlement 2018-19

Part of the debate – in the Senedd at 5:30 pm on 16 January 2018.

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Photo of Mike Hedges Mike Hedges Labour 5:30, 16 January 2018

Oh, diolch, Llywydd. [Laughter.] That came as a shock then.

Two major areas of Welsh Government expenditure are health and local government. The downside of extra money for health has obviously been less money for local government. Local government finances are under pressure. Local councils have been forward thinking and innovative in dealing with real-term cuts to their budgets, and that's councils led by every different party: they've had to work hard to deal with incredibly difficult financial positions.

Whilst real-term reductions in Wales have been substantially less than in England and less than in Scotland, they have created difficult decisions for councils to make. As I've stated regularly, social care is under greater pressure than health in terms of finance. Without adequate social care, we end up with patients unable to be discharged from hospitals. We see that in England, where it has been stated that, at one time, one hospital had more delayed discharging than the whole of Wales. Also, in England, we have seen the wholesale closure of libraries. The English education system has become fragmented and chaotic.

We in Wales have avoided this. In the provisional settlement, the Welsh Government guaranteed that no local authority will have to manage a reduction of more than 1 per cent. The final settlement is better and ensures that no local authority in Wales will have to manage a cut of more than 0.5 per cent in cash terms, although, of course, if it's 0.5 per cent in cash terms, it's going to be a far larger cut in real terms.

The final settlement represents an additional £28.3 million in funding for local authorities in Wales compared with the provisional local government settlement. We've got to be happy with that. We're moving in the right direction: £20 million is for general use and £7 million is a manifesto commitment to increase the capital limit when charging for residential care and raising that to £40,000, commencing from April 2018. I wonder how many people will be voting against increasing the limit for charging to £40,000. When you vote against this, that's what you'll actually be doing. Then, an additional £1.3 million funding for local authorities to use their discretionary powers to provide targeted relief to support local businesses that would benefit from additional assistance.

An issue my local MP Carolyn Harris has campaigned on for most of the last two years has been free child burials, and there's £600,000 for that, which has allowed councils to do that. It is not a huge sum of money, but it'll make a difference to people's lives and for those people who have the huge misfortune to lose their child, they won't face the huge financial cost that will come alongside the tears and the upset of the death of a child. The death of a child is severe enough for a family, one that most of us hope, or perhaps even all of us hope, will never happen to anybody we know or any of our family. When that has happened to somebody, giving them a financial pressure as well, I think, is something that—. Ending that is something the Welsh Government deserves a pat on the back for.

The local government formula can be easily changed. You just change the percentage numbers. But with no extra money, every local authority that gets more money will mean some other local authorities getting less. And while the formula may need—