2. Questions to the Cabinet Secretary for Local Government and Public Services – in the Senedd on 5 December 2018.
8. Will the Cabinet Secretary provide an update on the local government settlement for Pembrokeshire County Council? OAQ53037
I published the provisional local government settlement for 2019-20 on 9 October. The Government announced further funding for local government on 20 November. The final settlement will be announced on 19 December.
I thank the Cabinet Secretary for that reply. When I raised this question a year ago, Pembrokeshire was being forced to raise its council tax by 12.5 per cent—the highest rise in Wales. This year, the draft budget was presented on Monday, as a result of which, council tax is set to rise by another 10 per cent and there are going to be £15.5 million-worth of cuts in services. Prior to the budget being set, senior officers in Pembrokeshire had warned that council tax would need to rise by 28 per cent in order to meet service needs. Pembrokeshire is being penalised by the current local government settlement and there seems to be no incentive for economical councils to continue to be economical, because the higher your council tax is, the more you get from the Welsh Government. So, can I add to the plea from Helen Mary Jones earlier on that this settlement formula should be reconsidered? Because it's not just rural councils that are penalised in this way, but any economical council is bound to be, because the higher your council tax is, the higher the financial needs estimations are, and consequently the higher the grants from Welsh Government, which does seem to be perverse.
I did notice the comments made by the leader of Pembrokeshire County Council on these matters in a newspaper recently. I will say to him and to the Member for Mid and West Wales that Pembrokeshire County Council has taken a number of decisions over its council tax levels over a number of years in full knowledge of the consequences of those decisions. And it is a matter for the electorate of Pembrokeshire to determine whether those decisions were correct or not, and not a matter for me. What I do not believe is that either the professional or the political leadership of Pembrokeshire can take those decisions and then turn around to the media and say that they have no idea of the consequences of those decisions. Whenever we take political decisions, there are consequences, and Pembrokeshire has taken decisions to reduce its council tax, in relative terms, over a number of years—it has the lowest council tax in Wales—and, as a consequence of that, they're now facing difficulties in their budget. That is a matter for that authority and for the electorate of Pembrokeshire.
I thank the Cabinet Secretary.