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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.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. They already know the average rise in next year's revenue support grant will be 2.2%, and have warned of council tax rises and cuts in public services.
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, which represents council leaders, 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. It has already complained about councils' share of the Welsh assembly government's total draft budget of £14.8bn for the year starting next March.
WLGA leader Derek Vaughan said the planned increase had been "met with fury right across local government". It said it was the "poor relation" of public services and warned that social services and other areas of local council spending would be hit. 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 WLGA warns of cuts in public services and council jobs
Local Government Minister Brian Gibbons will set out the settlement It also suggested that two local authorities other than Powys were likely to face a settlement below 1.5%, but has not named them.
"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." Swansea Council leader Chris Holley said: "I'm very fearful that our budgets will be under so much pressure that there's a possibility that jobs could be lost throughout the length and breadth of Wales."
Mr Vaughan said some were expecting a funding increase of only 1%, a cut in real terms after allowing for inflation. Glenys Rolsten, manager of the Care and Repair agency in Wrexham, which helps to improve the housing and living conditions of older and disabled people, said she was worried.
Monmouthshire's Head of Finance Steve Greenslade warned that some schools in Wales would be placed in an "irretrievable financial position". She said: "We couldn't do without that funding. We would struggle, we would pare down our service an awful lot and we probably wouldn't have the handy person service locally, or at least it wouldn't be free of charge to the public."
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. Scaremongering
Plaid Cymru AM Mohammad Asghar accused the WLGA of scaremongering and called on local authorities to start making real efficiency savings. The assembly government, which receives its funding from the UK government and Europe, last week set out its spending plans, which includes £3.64bn in new public service investment over the next three years.
Deputy First Minister Ieuan Wyn Jones said council tax increases should be "not unreasonable". But it insists Welsh local councils have been funded "generously" over the years.
Cardiff Central AM Jenny Randerson, the Lib Dem's Welsh spokesman on finance, told BBC Wales: "It is, of course, a very cynical ploy.
"The assembly government is faced with a very tight budget, we all acknowledge that, and so what they've done is the worse settlement of all - they've passed [it] on to local authorities, knowing that with local elections next year, people are going to blame their local council, not blame the assembly government.
"I can assure you, they [AMs] wouldn't have been doing this to themselves if it had been an election year in the assembly."
But 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 admitted it was a tough settlement but 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.