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Services worry over tight budget Extra £3.64bn for public services
(about 3 hours later)
Councils have urged the Welsh Assembly Government to make areas like schools and social services its priority. The Welsh Assembly Government has promised more money for public services over the next three years.
The assembly government's draft budget will be unveiled later, amid tighter spending limits set by the UK Treasury. Before the draft budget announcement, opposition parties had warned services could be cut as the assembly government was funding too many initiatives.
Opposition parties claim this could make cuts in services inevitable, and councils fear the assembly government is trying to fund too many initiatives. Despite tighter spending limits set by the UK Treasury, ministers said there would be £3.64bn new public service investment over the next three years.
The Welsh Local Government Association (WLGA) will meet ministers beforehand to discuss their concerns. However, the increase is not as great as in previous years.
Derek Vaughan, Labour leader of the WLGA, said: "In the past we've had a large number of initiatives, for example free school breakfasts was one, and more recently the countryside rights of way. An extra £1.2bn has been promised for health services over the next three years.
There will be £120m spent on childcare, and £155m on transport.
By 2011, public spending will have reached double the budget of the assembly government in 1999.
Councils had urged the assembly government to make areas like schools and social services the priority.
The Welsh Local Government Association (WLGA) met ministers beforehand to discuss their concerns.
Speaking before the budget announcement, Derek Vaughan, Labour leader of the WLGA, said: "In the past we've had a large number of initiatives, for example free school breakfasts was one, and more recently the countryside rights of way.
"All these things are very laudable and we all wanted to do them, but sometimes it is a question of priorities. The assembly and ourselves just can't fund everything.""All these things are very laudable and we all wanted to do them, but sometimes it is a question of priorities. The assembly and ourselves just can't fund everything."
A lot of those very expensive ideas have been incorporated into the programme for government and the government is now committed to delivering that Jenny Randerson, Liberal Democrat The Labour-Plaid coalition created after May's election did warn that there was less money to go around, and local authorities are already struggling with overspends.
The Labour-Plaid coalition created after May's election has warned that there is less money to go around, and local authorities are already struggling with overspends.
This includes an overspend of more than £18m in Welsh social services, according to figures obtained by BBC Wales's Politics Show.This includes an overspend of more than £18m in Welsh social services, according to figures obtained by BBC Wales's Politics Show.
Jeff Jones, the former leader of Bridgend Council and now a local government consultant, said councils were bracing themselves for the tightest budget settlement in 10 years and having to make "large savings up to 2011". Jeff Jones, the former leader of Bridgend Council and now a local government consultant, warned councils had braced themselves for the tightest budget settlement in 10 years and were having to make "large savings up to 2011".
"That's going to be very difficult for the 22 Welsh authorities which are fairly small, do not have the reserves of the former county councils when it was tough in the 1980s and will find it very difficult not to hit services like education, social services and so on," he said."That's going to be very difficult for the 22 Welsh authorities which are fairly small, do not have the reserves of the former county councils when it was tough in the 1980s and will find it very difficult not to hit services like education, social services and so on," he said.
He said most local authorities would find it very difficult not to go up to the 5% cap imposed by the assembly government on council tax charge increases.He said most local authorities would find it very difficult not to go up to the 5% cap imposed by the assembly government on council tax charge increases.
Jenny Randerson, Liberal Democrat health and social services spokeswoman, said: "Plaid Cymru's manifesto was about twice the cost of the other parties.
"A lot of those very expensive ideas have been incorporated into the programme for government and the government is now committed to delivering that.
The draft budget will be announced on Monday afternoon
"My fear is that the pressure will be put on the one area where the government can cut the funding and then blame someone else. And that is the local government settlement," Ms Randerson added.
However, Plaid's Helen Mary Jones said: "There's no doubt that it is going to be hard and there will be some difficult decisions to be made.
"But what is essential is that core services - and in the context of local government we're obviously talking particularly about education and social services - that core services are protected."
Jonathan Morgan, Conservative health and social services spokesperson, said he was also concerned about tax increases.
"Council tax increases next year could be a lot higher than they have been in the past two years because local government will have to find the money from somewhere else.