7. Will the First Minister make a statement on the financial performance of town and community councils in Wales? OAQ51732

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. 

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 fundamental 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?

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.

First Minister, we often hear the word 'austerity' used in this Chamber. So, given the limited size of many of our local authorities, how can the money spent on community councils be justified, in that it requires the expense of a chief executive, several staff, and a number of office buildings to facilitate their operations? In other words, First Minister, what do community councils offer that the local government couldn't implement themselves?

I’m not aware of any town or community councils that have a chief executive, I must say. I’m aware of those that have clerks, and some are full-time and some are part-time. I think that town and community councils are an extremely valuable level of government. If the Member is suggesting we should abolish, for example, Bridgend Town Council or Porthcawl Town Council, then he is welcome to explain that to any—[Interruption.]—apart from the Rhondda, of course, where there are no community councils—he is welcome to come and explain that to them. What is important is not that we abolish an entire level of local government, but look to find ways to strengthen that level in the future.