1. Questions to the Cabinet Secretary for Finance – in the Senedd on 5 December 2018.
1. In light of warnings from the Welsh Local Government Association about the impact of cuts to local government funding, what discussions has the Cabinet Secretary held with the Cabinet Secretary for Local Government and Public Services regarding the safeguarding of local services? OAQ53050
I thank Jenny Rathbone for the question. I hold regular discussions with all Cabinet colleagues, including the Cabinet Secretary for Local Government and Public Services. On Friday of last week, for example, we jointly attended a meeting of the local government working group, attended also by members of the WLGA, and others.
Thank you, Cabinet Secretary. Obviously, the additional funding that was made available last week for local government is very welcome, but, in terms of how it translates into money going to Cardiff Council, it's £1.5 million, in the context of Cardiff Council having to look for potential cuts of £34 million. So, it remains a very challenging landscape for local government. And I wondered what work the Government can do to ensure that we are ensuring that public services are joining up together, to try and protect these preventative services, which are so important to the well-being of the community.
Can I agree, Llywydd, with Jenny Rathbone that it remains a severely challenging period for all public services in Wales? Nine years into austerity and local government is certainly in the front line. I'm grateful to the Welsh Local Government Association for what they said. When we announced the additional resources for councils, the WLGA itself said that the announcement signalled significant progress and demonstrated a concerted effort to offset the impact of austerity in Wales. We will go on working with local government colleagues to strengthen the way in which they are able to act collectively and regionally, and to find ways in which money can be moved upstream so that we spend money preventing problems from happening, rather than having to respond after the damage has been done.
As you know, Cabinet Secretary, the local authorities in my area are all Labour run, and even they are starting to say that schools and social care budgets can't be protected, with one of them saying even that Welsh Government cannot continue to use austerity as an excuse for not allowing local government to deliver vital services to all constituents. With that comment in mind, I wonder if you could tell me whether you've discussed with the councils in my region, directly yourself, about whether changes to the funding formula would make a difference, and, in the meantime, whether you've discussed any particular ways about how they can protect those budgets on the money that you have given them this year and next year. And, if you haven't had the chance to do that, if you are First Minister in a few weeks' time, how will you be instructing colleagues to do that on your behalf?
I thank Suzy Davies. I congratulate her, of course, on having all Labour local authorities in her area, and I've no doubt they'll look forward to having a Labour Government at UK level as well as here in Wales, because that is what would make the greatest possible difference to their financial circumstances. The funding formula was discussed at the meeting that I attended with Alun Davies on Friday of last week, including representatives of councils in Suzy Davies's area. I think council leaders recognise that, in the end, the funding formula is a distraction from the main issue. The funding formula shares out the amount of money available, and changing it when money is reducing is exceptionally difficult. What they emphasise, and we emphasise too, is the need for the UK Government to provide proper funding for all public services in Wales so that it is the size of the cake that is growing rather than an argument over how a reducing cake is shared out.
Cabinet Secretary, what assessment have you made of the research by the University of Cambridge, which shows that cuts to spending on services by councils in England are, on average, double what they've been in Wales?
I thank Jane Hutt for that question. She raised this during our debate on the draft budget yesterday, pointing to the research by the University of Cambridge, which, as I said yesterday, was published, as it happened, on the same day that the provisional settlement for local government in Wales was published. And it absolutely demonstrates, as the report itself says, that Wales and Scotland have taken a different approach to the way in which we safeguard local services here, and that we have, within the constraints, which are real, that we face—and our actions don't mitigate all of the difficulties that local authorities face, I know—but, within those constraints, we have protected local government in Wales from the worst effects of nine years of austerity, while local government in England has simply been thrown to the wolves.