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Services worry over council cash Services worry over council cash
(30 minutes later)
Local council leaders in Wales have warned that services may suffer as they wait to find out how much money they will receive next year.Local council leaders in Wales have warned that services may suffer as they wait to find out how much money they will receive next year.
All 22 face below-inflation settlements from the Welsh Assembly Government.All 22 face below-inflation settlements from the Welsh Assembly Government.
While ministers have said no authority will get an increase of under 1.5%, inflation is currently about 5%.While ministers have said no authority will get an increase of under 1.5%, inflation is currently about 5%.
Councils have faced steep increases in their energy bills and nine have millions of pounds frozen in Icelandic banks or their subsidiaries.Councils have faced steep increases in their energy bills and nine have millions of pounds frozen in Icelandic banks or their subsidiaries.
The overall deal for local government announced in last week's draft budget was 2.8%.The overall deal for local government announced in last week's draft budget was 2.8%.
I would expect a prudently managed organisation to be able to navigate its way through the current difficulty Finance Minister Andrew Davies Welsh Local Government Association leader John Davies then accused ministers of "making the wrong choices for the people of Wales who value their local services". I would expect a prudently managed organisation to be able to navigate its way through the current difficulty Finance Minister Andrew Davies
Welsh Local Government Association leader John Davies then accused ministers of "making the wrong choices for the people of Wales who value their local services".
The association will seek talks with the assembly government, after the detailed council-by-council settlement is announced, during what Mr Davies called "exceptionally difficult times" for local councils.The association will seek talks with the assembly government, after the detailed council-by-council settlement is announced, during what Mr Davies called "exceptionally difficult times" for local councils.
The leader of Cardiff council, Rodney Berman, said that vulnerable people suffered most from cost-cutting measures.
"In recent years in Cardiff we had to close a residential home. When you spoke to the families of the people in that home they didn't see that as an easy decision to make."
"It's going to be really hard to meet the gap this year and I think it will put the pressure on council tax."
"We're not seeing enough evidence that Brian Gibbons as local government minister is actually sticking up for local government," he said.
Finance Minister Minister Andrew Davies told AMs on Tuesday that nine Welsh local authorities had a total of £60m in Icelandic financial institutions, while three police authorities had £10m and three universities £8.1m.Finance Minister Minister Andrew Davies told AMs on Tuesday that nine Welsh local authorities had a total of £60m in Icelandic financial institutions, while three police authorities had £10m and three universities £8.1m.
They are Glyndwr University in Wrexham, the University of Wales and Aberystwyth University.They are Glyndwr University in Wrexham, the University of Wales and Aberystwyth University.
He said any request for "assistance short term" would be considered but insisted there was no prospect of financial compensation from ministers.He said any request for "assistance short term" would be considered but insisted there was no prospect of financial compensation from ministers.
The minister said the assembly government was "fully supporting" UK government negotiations with Icelandic officials to get assets unfrozen.The minister said the assembly government was "fully supporting" UK government negotiations with Icelandic officials to get assets unfrozen.
"I would expect a prudently managed organisation to be able to navigate its way through the current difficulty - as indeed very much looks to be the case," he said."I would expect a prudently managed organisation to be able to navigate its way through the current difficulty - as indeed very much looks to be the case," he said.
"Any prospect of compensation would clearly be very detrimental to the efforts being made to get the frozen investments returned," Mr Davies added."Any prospect of compensation would clearly be very detrimental to the efforts being made to get the frozen investments returned," Mr Davies added.
Welsh Local Government Minister Brian Gibbons is to due join Whitehall discussions on the Iceland issue on Wednesday.Welsh Local Government Minister Brian Gibbons is to due join Whitehall discussions on the Iceland issue on Wednesday.
Dyfed-Powys Police Authority has called a special meeting at the same time to consider the impact of having £2m of its money tied up in the Nordic country.Dyfed-Powys Police Authority has called a special meeting at the same time to consider the impact of having £2m of its money tied up in the Nordic country.