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Services worry over council cash | Services worry over council cash |
(about 1 hour later) | |
Local councils in Wales will get an average 2.9% cash increase in assembly government funding next year. | Local councils in Wales will get an average 2.9% cash increase in assembly government funding next year. |
Council leaders say services may suffer as this is far below the current inflation rate of 5.2%. | |
Anglesey, Powys and Blaenau Gwent will receive the lowest settlements of 1.5%, with Carmarthenshire, Bridgend and Cardiff all get increases of around 4%. | |
Ministers said projections indicated inflation would fall sharply next year, but admitted "challenging times". | |
They said they were committed to giving enough money for key services. | |
Local Government Minister Brian Gibbons set a 1.5% floor on the amount of funding increase councils would receive. These are challenging economic and financial times for the public sector, businesses and citizens alike name here | |
Dr Gibbons promised to work with local authorities to ensure the money "was used most effectively and efficiently" | Dr Gibbons promised to work with local authorities to ensure the money "was used most effectively and efficiently" |
He added: "The additional resources demonstrate the assembly government's commitment to assist local government to meet the undoubted cost pressures they face. | He added: "The additional resources demonstrate the assembly government's commitment to assist local government to meet the undoubted cost pressures they face. |
"These are challenging economic and financial times for the public sector, businesses and citizens alike." | "These are challenging economic and financial times for the public sector, businesses and citizens alike." |
Dr Gibbons stressed that there was also extra money for councils to extend free school transport and more than £600m extra would be available for capital projects, such as refurbishing school buildings. | |
He said a £400m fund would also be offered over the next two years for essential capital schemes. | |
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. |
Welsh Local Government Association leader John Davies last week accused ministers of "making the wrong choices for the people of Wales who value their local services". | Welsh Local Government Association leader John Davies last week accused ministers of "making the wrong choices for the people of Wales who value their local services". |
COUNCIL CASH INCREASES 2009-10 Anglesey 1.5%Blaenau Gwent 1.5%Bridgend 4.1%Caerphilly 2.7%Cardiff 4.0%Carmarthenshire 4.2%Ceredigion 2.8%Conwy 1.8%Denbighshire 3.5%Flintshire 2.7%Gwynedd 2.2%Merthyr Tydfil 2.4%Monmouthshire 3.7%Neath Port Talbot 2.2%Newport 2.5%Pembrokeshire 3.0%Powys 1.5%Rhondda Cynon Taf 1.8%Swansea 3.0%Torfaen 2.4%Vale of Glamorgan 3.9%Wrexham 3.7%Welsh average 2.9% | COUNCIL CASH INCREASES 2009-10 Anglesey 1.5%Blaenau Gwent 1.5%Bridgend 4.1%Caerphilly 2.7%Cardiff 4.0%Carmarthenshire 4.2%Ceredigion 2.8%Conwy 1.8%Denbighshire 3.5%Flintshire 2.7%Gwynedd 2.2%Merthyr Tydfil 2.4%Monmouthshire 3.7%Neath Port Talbot 2.2%Newport 2.5%Pembrokeshire 3.0%Powys 1.5%Rhondda Cynon Taf 1.8%Swansea 3.0%Torfaen 2.4%Vale of Glamorgan 3.9%Wrexham 3.7%Welsh average 2.9% |
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. | 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." | "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." | "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. | "We're not seeing enough evidence that Brian Gibbons as local government minister is actually sticking up for local government," he said. |
The association will now seek talks with the assembly government during what Mr Davies called "exceptionally difficult times" for local councils. | |
Finance 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. |
Dr Gibbons was joining Whitehall discussions on the Iceland issue on Wednesday. | |
Dyfed-Powys Police Authority had also called a special meeting at the same time to consider the impact of having £2m of its money tied up in the nordic country. |