14. Debate: Local Government Settlement 2021-22

Part of the debate – in the Senedd at 5:41 pm on 9 March 2021.

Alert me about debates like this

Photo of Delyth Jewell Delyth Jewell Plaid Cymru 5:41, 9 March 2021

(Translated)

I will also start by thanking local authority staff for the hard work that they've been doing the length and breadth of Wales in dealing with the impacts of the pandemic over the last 12 months. Throughout this troubled period, councils have often succeeded in ensuring that key services continue to be provided in exceptionally difficult circumstances, be that in the care sector, the refuse sector or in teaching. I think it's important that we thank them on the record.

The financial increase in the settlement is something to be welcomed, and I'm aware that some councils are very pleased with the settlement. But it's important to bear in mind the context, namely that this budget follows a decade of severe cuts, with councils having to make huge savings over the past decade. The analysis of the Wales Governance Centre shows that spending has fallen by 7.7 per cent in real terms between 2010 and 2019. It is disappointing, and it has already been said, but it is disappointing that the Government has decided not to set a funding floor in order to ensure that the two councils in receipt of a far smaller increase than the others, namely Ceredigion and Wrexham—they will get 2 per cent and 2.3 per cent; they will continue to lose out. I estimate that the cost of implementing this would be around £2.4 million, and I find it difficult to understand why this hasn't been provided, given that it could have made a significant difference to those councils.

Analysing the financial needs of the councils isn't simple, given that funding to deal with COVID is provided separately and that we need to take into account that council incomes have fallen, for example, through fees and payments that haven't been received for parking, and that taxation revenue has fallen in tourism and leisure. So, councils will come to the conclusion that they don't have enough funding to provide all of their services, and they will have some very difficult decisions to make. Once again, they'll have to choose between cutting jobs or increasing council tax quite substantially.

I called on you, Minister, at the beginning of February, to consider using some of the unallocated funds and to provide it to councils in order to enable them to avoid increasing council tax for the next financial year. Since then, the Conservatives have also adopted the Plaid Cymru policy, also asking for the same freeze. That's ironic, and I have to point this out, because this is a direct result of the Conservative policy of austerity, in terms of councils having to increase council tax repeatedly over recent years in the first place. As the Minister is fully aware—I know we're agreed on this—council tax is a very regressive form of taxation, and now another five-year term has gone by with a Labour Government not doing enough to make the system fairer. Facing an increase in council tax will be a huge blow to many families and individuals who've faced hardship over the past year. Yes, the budget for supporting those who are unable to pay council tax is important—it will provide crucial support, I recognise that—but that's just a sticking plaster, a short-term response to a long-term problem that will hit the poorest hardest in terms of taxation. If Plaid Cymru is in government after May, we will reform this tax in order to make it fairer and that will be a priority, and it will make a significant difference to the budgets of some of the families in greatest need. 

But to conclude, Deputy Llywydd, I would like to ask the Minister whether she agrees that we need to provide local government staff with fair salaries reflecting the crucial work that they have been doing during the pandemic, because, unfortunately, the settlement doesn't allow for this, which will mean that councils will have to try and find the money within existing budgets, which are already very tight indeed. The Unite, Unison and GMB unions have called for a pay increase of 10 per cent for council and school staff. Again, there is no provision in this settlement for any increase. So, I'd like to hear the Minister's comments on that when she responds to the debate. Thank you.