14. Debate: Local Government Settlement 2021-22

Part of the debate – in the Senedd at 5:51 pm on 9 March 2021.

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Photo of Julie James Julie James Labour 5:51, 9 March 2021

Thank you, Deputy Presiding Officer. I'm just wanting to thank Members for their interest and their contributions. Just responding to the specific points that Members raised, just for a moment, I'm almost speechless at the brass neck of Laura Jones, who tried to accuse the Welsh Government of the kind of pork barrel politics that she has obviously come to expect in a local government settlement, as she represents a party that has been accused by a professor in Cambridge, Professor Diane Coyle, the Bennett professor of public policy at Cambridge University, of being pretty blatant in their pork barrel politics in directing £4.8 million of funding to Tory seats with no justification whatsoever. You can tell that that's what she expects of others, but I am here to tell her that we do not behave like that in Wales. As Mike Hedges pointed out, you can look at the amount-per-capita spend in an entirely different way, and the increase year on year, and you can see that there is absolutely no bias towards Labour authorities or towards any particular region. The distribution settlement works fairly and well, and it's why we have such a good relationship with local authorities, which is also not the case across the border, where the assumption on the level of funding available for local authorities assumes a council tax increase of 4.99 per cent across the board.

Turning to what Delyth said, I agree with a large percentage of what Delyth said. I did actually say, though, in my opening remarks, Delyth, that we were absolutely appalled at the UK Government stance on public sector pay. They're reneging on the promises they made to the NHS staff, and there is absolute naked disregard of the work that people have put into public service over the pandemic, both in England and indeed across Wales, where of course we have kept all of our response services in the public sector and people have absolutely stepped up to that challenge in a way that I am extremely grateful for. I say again, with no apology whatsoever, that without local government employees we could not have made it through the pandemic in the order that we have, and I am very grateful to them. However, we are not funded to provide that settlement, and it is dreadful that we are not funded to provide the settlement that we would have liked to have provided, because of course we will not get a consequential from the pay settlement in England, because they are not going to do it. It's outrageous, really. 

In terms of the comments on the sufficiency of the settlement, the Government does recognise the priorities and pressures we and local government are facing through the settlement and the wider funding available to local government. As is set out in the Welsh budget by my colleague and friend Rebecca Evans, the Minister for finance, our funding priorities continue to be health and local government services. This financial settlement is a significant continued improvement in funding for local government and delivers on that priority. 

Just to reflect what Mike Hedges said, it reflects our commitment to supporting those who need it most, and we know that that can mostly be delivered via our local councils. As he said, the range of things that local authorities are able to deliver across Wales, because of this excellent settlement, is something that will benefit us all. Of course we would have liked to have done a longer term settlement, but of course we are ourselves not given that longer term settlement, and so we cannot give onwards to the authorities that which we are not given ourselves. We've had that discussion on a number of occasions with local government and I know that they have made that point directly to the Secretary of State themselves that this is something we all need, and the Minister for finance said earlier that it would be much better if we had a multi-year settlement so that we could all plan for the future in a much more reflective way.