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Councils wait on funding figures | Councils wait on funding figures |
(about 1 hour later) | |
Welsh councils are due to find out how much funding they will receive from the assembly government for the next year. | |
Local authorities know the average rise in next year's revenue support grant will be 2.2%, and leaders warned of inevitable council tax rises. | Local authorities know the average rise in next year's revenue support grant will be 2.2%, and leaders warned of inevitable council tax rises. |
The Welsh Local Government Association (WLGA) has said the average increase is the "lowest in living memory". | The Welsh Local Government Association (WLGA) has said the average increase is the "lowest in living memory". |
Local Government Minister Brian Gibbons will reveal the provisional settlements at the Senedd in Cardiff Bay later. | Local Government Minister Brian Gibbons will reveal the provisional settlements at the Senedd in Cardiff Bay later. |
The average rise of 2.2% is below the rate of inflation and some local authority leaders have also warned that cuts in core services are likely. | The average rise of 2.2% is below the rate of inflation and some local authority leaders have also warned that cuts in core services are likely. |
'Fury' | 'Fury' |
Some councils are expected to get even less, with Powys likely to see an increase closer to 1%. | Some councils are expected to get even less, with Powys likely to see an increase closer to 1%. |
The WLGA has already warned council taxes could rise by between 8 and 10% next year. | The WLGA has already warned council taxes could rise by between 8 and 10% next year. |
On Tuesday the WLGA analysed the draft budget, published last week, and gave its considered response to the proposed settlement to a committee of AMs. | On Tuesday the WLGA analysed the draft budget, published last week, and gave its considered response to the proposed settlement to a committee of AMs. |
WLGA leader Derek Vaughan said the planned increase had been "met with fury right across local government". | WLGA leader Derek Vaughan said 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 added. | "The increase of 2.2% in our RSG (Revenue Support Grant) was the lowest we've seen in living memory," he added. |
Local Government Minister Brian Gibbons will set out the settlement | Local Government Minister Brian Gibbons will set out the settlement |
"To balance the books next year they [the councils] really will need to increase the council tax by 8-10%, and we've had some local authorities telling us that already." | "To balance the books next year they [the councils] really will need to increase the council tax by 8-10%, and we've had some local authorities telling us that already." |
Mr Vaughan said some were expecting a funding increase of only 1%, a cut in real terms after allowing for inflation. | Mr Vaughan said some were expecting a funding increase of only 1%, a cut in real terms after allowing for inflation. |
Monmouthshire's Head of Finance Steve Greenslade warned that some schools in Wales would be placed in an "irretrievable financial position". | Monmouthshire's Head of Finance Steve Greenslade warned that some schools in Wales would be placed in an "irretrievable financial position". |
The WLGA also suggested that 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 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. |
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". |
However, he refused to say whether the coalition government would cap council tax levels or not. | However, he refused to say whether the coalition government would cap council tax levels or not. |