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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%.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%.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".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.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 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 Local Government Minister Brian Gibbons
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.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.He said a £400m fund would also be offered over the next two years for essential capital schemes.
WELSH COUNCIL CASH INCREASES 2009-10 Anglesey: 1.5%Blaenau Gwent: 1.5%Bridgend: 4.1%Caerphilly: 2.7%Cardiff: 4%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%Powys: 1.5%Rhondda Cynon Taf: 1.8%Swansea: 3%Torfaen: 2.4%Vale of Glamorgan: 3.9%Wrexham: 3.7%Welsh average: 2.9%Source: Welsh Assembly Government
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%
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.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.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.Dr Gibbons was joining Whitehall discussions on the Iceland issue on Wednesday.
The BBC understands that a third of the £858.3m that 116 councils in England and Wales placed in four Icelandic banks could be recovered.
The Local Government Association is hopeful that up to £300m could be recouped from two of the banks whose UK assets were frozen last week.
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.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.