6. Debate: The Local Government Settlement 2018-19

Part of the debate – in the Senedd at 5:23 pm on 16 January 2018.

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Photo of Siân Gwenllian Siân Gwenllian Plaid Cymru 5:23, 16 January 2018

(Translated)

Since 2010 local authorities across Wales have been working in a very difficult financial climate as a result of the destructive austerity policies of the Conservative Government. This means that local services have been lost and the most vulnerable in our communities are being affected most. Following years of cuts to local government budgets in Wales—a cut of 1.4 per cent in 2016-17 and 3.4 per cent in 2015-16—as part of the agreement for the budget last year, Plaid Cymru did ensure an additional £25 million to fund local authorities. As a result of that agreement, in 2017-18, a number of local authorities in Wales saw an increase in their budgets for the first time for some years. But despite this additional investment, following other factors such as inflation and increasing pressure on greater services with regard to social care, despite that additional investment, that settlement was a real-terms cut to some local authorities.

And that's the truth for this year as well. The final settlement includes increases and reductions in funding for different local authorities, with nine authorities facing a cut, and 13 authorities seeing an increase of some kind in financial terms. Local authorities have saved more than £700 million since the beginning of austerity in 2010. But, truth be told, this settlement still doesn't give sufficient funding for councils for a number of the Government's priorities, including a pay rise for public services and local authorities. And this means that it will be more difficult to employ in the care sector and services across the board.

So, even though this settlement is less damaging to authorities than previous ones, the Government has to look to the future and think about building resilience into the system, and a more sustainable system in the way that they fund local government. For example, the Government announced last week decreases for council tax relief, which is worth £244 million a year. Council tax relief schemes are vitally important for the vulnerable people of Wales. But, by introducing a fairer taxation system in the first place, we could be in a situation where such a relief scheme wouldn't be needed, or such a wide-ranging one as we currently have. If we could introduce a fairer taxation system, we could save money in that particular area, and this could release greater funds that could be used for front-line services within our local councils.

Of course, we all recognise and appreciate that these are vital services. We also acknowledge the tireless work being done by staff in local councils. We often in this place laud the staff of the NHS, and clearly we have to do that and we need to do that. But we also have to recognise that workers in the care sector and other sectors within our local authorities also work under continuing pressures, and the tireless work that they do is to be praised. Their commitment to the services that they try to provide for the people of Wales must be appreciated by all of us. But seeing the increasing pressure that is on the staff is heartbreaking, and it's also heartbreaking considering that it is the most vulnerable people in our society who are dependent on these services, and that it's them, ultimately, who will be hardest hit by all of this.

Yes, we have to put an end to austerity—of course we have to put an end to austerity. It's clear that it isn't working, despite all of the impact that it has on our communities. But also, this Government needs to take responsibility and to accept responsibility for working on new ways of creating systems that are balanced and sustainable for the future. Thank you.