Part of the debate – in the Senedd at 5:07 pm on 27 November 2018.
All right, thank you very much for the statistic, but I think you know better than—. Your Government has cut the funding for the most prosperous councils in Wales. All six councils in north Wales would have seen their budget cut by at least half of 1 per cent. Three would have received a 1 per cent budget cut already.
Once again, rural councils will suffer compared to Labour-led urban authorities. This complex and unfair formula resulted in a situation where Rhondda Cynon Taf council has been able to stockpile unusable reserves of £152 million. That is a staggering figure. Yet, Monmouthshire and Powys councils have been forced to introduce severe budget cuts to balance their books.
This Labour Government has constantly failed to recognise the particular problems faced by rural council authorities in Wales in delivering public services. There are higher costs in delivering public services in rural areas, and this Government action will inevitably result in cuts to services and increases in council tax. In 1997, the average band D council tax in Wales was £490. It is now nearly £1,492, a staggering rise of over 200 per cent. That is all during the Labour Government. Excessive council tax rises have had a devastating impact on Welsh households. Citizens Advice has labelled council tax as our biggest tax problem in Wales.
Local authorities have tried to ensure as much money as possible is directed to front-line services by cutting out waste and unnecessary bureaucracy. But Labour's unfair funding formula will mean people, particularly those living in rural areas, will face damaging cuts in public services and rising council tax bills. We need a strategic review of the funding formula to ensure a fairer settlement. We need a funding formula that takes into account the needs of rural Wales and that ensures that rural councils are no longer penalised. I call on the Welsh Assembly to support our motion and deliver greater fairness in local authorities in Wales. Thank you.