1. Questions to the Minister for Finance and Local Government – in the Senedd at 1:39 pm on 25 May 2022.
Questions now from the party spokespeople. The Conservative spokesperson, Peter Fox.
Diolch, Llywydd. Minister, the £150 council tax rebate we've just been talking about—the repayment scheme that you're implementing—made possible, as Mark Isherwood said, thanks to the UK Government, is indeed welcome here. However, what is seriously concerning are the multiple reports of families in Wales being stuck in limbo with no access to this support. Online comments to a recent article highlighted the extent of this ordeal, where families in Newport, Carmarthenshire, Wrexham, Caerphilly and many other places stated that they are yet to receive the rebate. Minister, do you know how many people in Wales have received, and are yet to receive, the council tax rebate? I know you've just quoted some figures for Monmouthshire and other parts of Wales. And for those who haven't yet received the funding, can you provide them with the assurance that there will not be any further delays in providing the money?
So, I would question whether or not we could refer to delays in providing the money, because this is a rapidly designed and rapidly delivered piece of support to families. And let's remember that we're talking about a million households receiving funding from this pot across Wales. I can confirm that, as of 16 May, which is the date for which I have the most recent figures, almost £61 million has been paid out, and that's to over 410,000 households. So, they have received their payments. And 13 authorities have started that payment process, but all should have started it and started making payments by the end of this month. So, we do expect things to ramp up quickly, but I have to say local authorities, I think, have been doing a very good job getting the funding out to households.
And let's remember again that local authorities can do this easily where they have the bank details of those households—so, people who pay their council tax through direct debit, for example, are relatively easy to pay. Lots of people don't have that function set up, so we have to get individual data from those constituents who then have to fill in just a short form on the council's website, but, of course, that takes some extra time and resource to deal with. But we are working as fast as we can, and local authorities are, to get the money out.
Thank you for that answer, Minister, and I also concur that local authorities do indeed work hard in getting these things out. But what families now need is for the Welsh Government to finally prioritise them by ensuring that that support reaches them extremely quickly. As I'm sure Members from across the Chamber will agree, families should not have to be subjected to continued uncertainties, so it's important that we make progress. I know councils have had to adapt to be able to provide this new scheme, but they already have the systems in place to collect council tax, and so people certainly do deserve answers as to why this process has been so slow, and I accept that you've tried to explain that.
There are also concerns, as you've just mentioned, about those people in society who are the most vulnerable, who probably don't have access to the internet, and are very worried that they are not going to be able to access this rebate and they may not know how to find it. Minister, can you outline what measures were adopted by the Welsh Government to ensure what should have been a smooth delivery of the rebate? Did you thrust the announcement onto councils, or did you ensure that they were fully equipped with the resources that they need to co-ordinate the supply as efficiently and effectively as possible? And, finally, how are you working with councils to ensure that everyone who is eligible can receive the support they need?
So, I'd repeat again that I don't think that this is a slow roll-out. And let's remember that this £150 contribution from the UK Government is coming at the start of the financial year; it's coming as we start to move into the spring and the summer, when bills and the pressures on households aren't going to be as acute as they are later on in the year. So, I think that households will be remembering that as they consider their budgets for the year ahead. But there are immediate things that the UK Government can do right now to support your constituents and mine with the cost of living. For example, they could reinstate the £20 a week uplift to universal credit—an immediate thing the UK Government could do to put money into the households that need it most. And they could also remove all of the social and environmental policy costs from household energy bills and instead meet those from general taxation—again, something they could do immediately and quickly to support households that are struggling.
So, Welsh Government is absolutely playing its part. Local government is supporting us in the delivery of the schemes that we have introduced. But, we can only do so much with the resources that we have available to us. It is for the UK Government to start doing the things that only it can do—for example, introducing that lower energy cap for low-income households. We have worked really closely with local authorities on this, providing the guidance and working with them on the scheme. But let's remember, the UK Government announced its rebate scheme—which isn't actually a rebate scheme, but that's for another day, I suppose—without any discussion with the Welsh Government, without any prior notice. So, we then immediately get asked by the media, by the opposition, 'What are we going to do about it? How are we going to use this consequential funding? Are we going to offer the same package of support?' So, we have to work very rapidly then with local government, and there's no reason why the UK Government can't engage with us when it's developing these proposals, so that we can do the background work in advance with our local authorities so that they have a greater lead-in time for delivery.
Well, thank you, Minister. I want to change tack slightly. Minister, Wales is now at a critical stage, and what comes next will determine the future and shape of the country. We're currently suffering the triple whammy of inflationary pressure, the pandemic and now the Welsh Government's—and I have to say it—kick in the teeth to our fantastic tourist industry. Your statement yesterday on self-catering properties sent shockwaves through the tourist industry in Wales. Despite what your statement says, Minister, you have chosen not to listen to the industry. I and the tourist sector fear the Welsh Government's position will wreck a crucial pillar of the Welsh economy. The priority needs to be supporting business and creating well-paid jobs, not putting people out of work, which this will do. Will you, Minister, meet with the industry leaders and listen once again to their concerns and pleas? These are unprecedented times, and the industry doesn't need the Welsh Government piling additional pressures on to it at a time when it's trying to recover.
Well, it's Welsh Government's view that the changes are intended to ensure that those self-catering businesses are making that fair contribution to the economy in which they're situated. And where a property is let on a commercial basis for 182 days or more—it's only half the year—it will be making a contribution to the local economy, and it will be generating income and it will be creating jobs. Where those thresholds aren't met, we're only asking that the property pays council tax, like every other property in the community. And I have to say that it shouldn't have come as a shock, because I did announce this on 2 March, more than a year before these measures will be coming into force, taking practical effect, and we did publish the technical consultation on it, and that followed a huge consultation, where we had over 1,000 responses. So, we've had a good level of engagement.
I did meet with the Wales Tourism Alliance, and had a really useful discussion with them, and, as a result of that, I did indicate that I would go away and take some further advice on those properties that have planning restrictions attached to them, whereby they're not allowed to let for the full 12 months of the year. And I have indicated that I'm looking at how we can make exemptions for those particular properties, demonstrating, I think, that we have been listening to those concerns raised by the industry. But I think that we're only asking that businesses make a reasonable contribution to the economy in which they're sited.
Plaid Cymru spokesperson, Llyr Gruffydd.
Diolch yn fawr, Llywydd. Minister, you will recall, I know, in 2020, Audit Wales found that a third of town and community councils in Wales had their accounts qualified—deemed unacceptable, of course—and in the 2017 local elections over two thirds of seats for town and community councillors went uncontested; 80 per cent of wards didn't actually have an election. Now, we await an analysis for the most recent local election, a few weeks ago, although anecdotally I think we can safely say that the situation certainly hasn't improved, possibly even gotten worse. So, that said, what is your assessment of the state of town and community councils as a tier of local government in Wales?
I think that my assessment would be that the tier is mixed. I would say that there are some incredibly vibrant local authorities—excuse me, town and community councils—which are doing great work within their communities: they're ambitious, they have good plans to improve the area, they engage well with the communities around them, they put on events, they improve the local environment and so on. But then there are other town and community councils that are, I have to say, much less ambitious and deliver much less for their communities, and I suppose the overall vision, really, is to bring those community councils and support them to come up to the level of the best, and we do have some excellent town and community councils across Wales.
We do, indeed, but you're right to say there's huge disparity, isn't there, not only in terms of performance and ambition, but certainly in terms of the coverage to start with, where some areas have a town and community council, others don't. I think about nearly 30 per cent of the population of Wales don't even have a town and community council. Some are very large—Barry Town Council, for example, is very nearly representing a population the same size as Merthyr Tydfil County Borough Council—but then you have others who maybe represent just a few hundred people in their community, and, collectively, they represent a precept base, assets and reserves worth over £0.25 billion. So, taking all that into consideration, would you accept that maybe it is time to take a step back and to look at the situation more holistically and to maybe consider whether we need greater consistency in terms of provision and coverage, in terms of size, in terms of functions? And it might be an opportunity to look at strengthening responsibilities as well so that we can actually create a more sustainable tier of provision and make this key tier of local government more fit for the future?
I'd absolutely be keen to explore with the spokesperson what ideas we have in terms of driving forward improvement in the sector, because I think we're in agreement that the sector is very mixed in terms of both the practicalities of it but then also what they're delivering. I'm keen to have that discussion about how we strengthen powers for the best. We do have the additional powers through the Local Government and Elections (Wales) Act 2021 that look to support town and community councils with their ambitions, where they are ambitious to do more. But I think that the discussions I have with One Voice Wales are important in terms of exploring, really, how we do raise the sector up more generally. I have provided support via the chief digital officer for town and community councils to explore what more they can be doing in the digital space, because I think that modernising town and community councils is very important as well in terms of helping them engage better with their local communities. But I absolutely agree that there's plenty more to be done in this area, and I'm keen to have any discussions with any interested colleagues on ideas for the future.