8. Welsh Conservatives Debate: Local Government Funding

Part of the debate – in the Senedd at 4:54 pm on 27 March 2019.

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Photo of Mohammad Asghar Mohammad Asghar Conservative 4:54, 27 March 2019

Local government in Wales is facing a funding crisis. The final settlement for the coming financial year delivers a real-term cut in local government funding compared to last year. The Welsh Local Government Association estimated that local authorities needed an increase of some £260 million just to stand still in providing local services. However, the Welsh Government chose to turn a deaf ear to the WLGA's pleas. Make no mistake: it is a conscious policy decision by this Welsh Government to cut local government funding to the bone. When faced with the inevitable consequences of their decisions, Ministers fall back on tired old excuses of blaming Westminster for their ills and their deeds. As a matter of fact, I've been sick of listening in this Chamber on this side for the last year plus that every time—[Interruption.] Wait a minute, Joyce. What is is—[Interruption.] Why are you blaming London when you've got the money?

They conveniently forget that the funding floor agreement means that Wales benefits from the certainty that the funding that is received for devolved services will not fall below 115 per cent per head of the figure in England. At present, for every £1 per head spent in England on issues devolved to Wales, £1.20 is given to the Welsh Government. Wales is benefiting from £0.5 billion over the next two years due to measures announced by the Chancellor in the 2018 budget. So, the argument that Wales has been starved of funding does not match reality.

As a result, council tax payers in Wales are bearing the brunt of Welsh Government decisions to starve councils of the resources that they need. This is nothing new. Since 1997, council tax has trebled under Welsh Labour. Band D council tax in England has risen by 153 per cent in the last 20 years. In Scotland, the rise is 57 per cent. But in Wales, band D council tax payers now pay a swingeing 221 per cent more. Under the 2019 and 2020 funding settlement, no local authority in Wales will see their core funding rise enough to cover inflation. The leader of Torfaen council said, and this is a quote:

'councils have been left with a large shortfall for next financial year, as funding is not rising in line with the pressures faced by services like social care.'

Quote closed. [Interruption.] No. So, hard-pressed families, often in the poorest areas, have to dig even deeper to meet the inflation-busting demands.