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| Version 1 | Version 2 |
|---|---|
| Warning of big council tax rises | Warning of big council tax rises |
| (about 2 hours later) | |
| Council taxes in Wales could rise by between 8-10% next year, the Welsh Local Government Association (WLGA) has warned. | Council taxes in Wales could rise by between 8-10% next year, the Welsh Local Government Association (WLGA) has warned. |
| It told the assembly finance committee that councils faced a "significant" funding shortfall based on the assembly government's draft budget. | It told the assembly finance committee that councils faced a "significant" funding shortfall based on the assembly government's draft budget. |
| The WLGA said big council tax rises or cuts in core services were inevitable. | The WLGA said big council tax rises or cuts in core services were inevitable. |
| Deputy First Minister Ieuan Wyn Jones said council tax increases should be "not unreasonable". | Deputy First Minister Ieuan Wyn Jones said council tax increases should be "not unreasonable". |
| To balance the books next year they really will need to increase the council tax by 8-10% Derek Vaughan, WLGA leader | To balance the books next year they really will need to increase the council tax by 8-10% Derek Vaughan, WLGA leader |
| The WLGA had analysed the draft budget, published last week, and gave its considered response to the proposed settlement to the committee of AMs. | The WLGA had analysed the draft budget, published last week, and gave its considered response to the proposed settlement to the committee of AMs. |
| The figures indicated central funding for councils would increase by a basic 2.2%, although there was extra money for waste management and early years teaching in schools. | The figures indicated central funding for councils would increase by a basic 2.2%, although there was extra money for waste management and early years teaching in schools. |
| WLGA chief executive Steve Thomas said: "This budget proposal will diminish local government and it will diminish local government services". | WLGA chief executive Steve Thomas said: "This budget proposal will diminish local government and it will diminish local government services". |
| WLGA leader Derek Vaughan maintained the planned increase had been "met with fury right across local government". | WLGA leader Derek Vaughan maintained the planned increase had been "met with fury right across local government". |
| "The increase of 2.2% in our RSG (Revenue Support Grant) was the lowest we've seen in living memory," he said. | "The increase of 2.2% in our RSG (Revenue Support Grant) was the lowest we've seen in living memory," he said. |
| "To balance the books next year they (councils) really will need to increase the council tax by 8-10%, and we've had some local authorities telling us that already," he added. | "To balance the books next year they (councils) really will need to increase the council tax by 8-10%, and we've had some local authorities telling us that already," he added. |
| Individual councils will find out on Wednesday what they are expected to receive. | Individual councils will find out on Wednesday what they are expected to receive. |
| 'Tough settlement' | 'Tough settlement' |
| Mr Vaughan said some were expecting a funding increase of only 1%, a significant cut in real terms because it is well below inflation. | |
| Monmouthshire head of finanance Steve Greenslade warned that some schools in Wales would be placed in an "irretrievable financial position." | Monmouthshire head of finanance Steve Greenslade warned that some schools in Wales would be placed in an "irretrievable financial position." |
| The local government delegation told the AMs that it expected Powys to get the lowest settlement among the twenty two Welsh local authorities - possibly in the region of 1%. | The local government delegation told the AMs that it expected Powys to get the lowest settlement among the twenty two Welsh local authorities - possibly in the region of 1%. |
| The WLGA also suggested that a total of three local authorities were likely to face a settlement below 1.5%, but did not name the other two councils involved. | The WLGA also suggested that a total of three local authorities were likely to face a settlement below 1.5%, but did not name the other two councils involved. |
| Plaid Cymru AM Mohammad Asghar accused the WLGA of scaremongering and called on local authorities to start making real efficiency savings. | Plaid Cymru AM Mohammad Asghar accused the WLGA of scaremongering and called on local authorities to start making real efficiency savings. |
| Mr Jones refused to say whether the coalition government would cap council tax levels or not. | Mr Jones refused to say whether the coalition government would cap council tax levels or not. |
| He told a media briefing that ministers accepted that this was a "tough settlement" but that it would expect local councils to set a level of council tax that was "not unreasonable". | He told a media briefing that ministers accepted that this was a "tough settlement" but that it would expect local councils to set a level of council tax that was "not unreasonable". |
| He would not elaborate on what was "reasonable" in his view and what was not. | He would not elaborate on what was "reasonable" in his view and what was not. |