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Councils’ budgets ‘war of attrition’



The cost of cuts: Councils will lose 4.5% net

THE LOCAL GOVERNMENT settlement announced by Welsh Government continues an eight-year run of real term reductions to local government funding.

That’s according to the Welsh Local Government Association (WLGA) in response to Tuesday’s (Oct 10) announcement of the provisional budget for local government by Finance Secretary Mark Drakeford.

The Welsh Government claims the Budget will ‘protect key services’, as they continue to squeeze councils into devoting an ever-larger slice of an ever-diminishing budget to its core priorities.


While the Welsh Government claims that no council will have to cut more than 1% off its budget next year and 1.5% off the budget for 2019/20, when other costs are factored in all councils will be faced with a further significant cut above and beyond the headline claims. And taking Welsh government grants out of the final settlement suggests that cuts will be deeper still.

Announcing the provisional settlement, Mark Drakeford said: “Last year I told local authorities to prepare for the tougher times and harder choices that lay ahead as the flawed and failed policy of austerity continues to hit Wales hard.

“My priority, using a formula we have agreed with local government, is to try and protect councils from the worst of the cuts.

“Next year’s settlement might be difficult. We have done all we can to make it manageable. Councils must now use this time to plan ahead and ensure that funding goes to the services and people who need it the most.”


Professor Drakeford’s words got a stony welcome from the WLGA.

A statement from the body said: “In the context of ongoing and prolonged austerity, councils will view this as a very difficult and challenging settlement for supporting vital services that contribute to the education, health and well- being of our communities.

“Leaders across Wales have pushed for parity of funding and particularly sought new investment in a range of services, such as economic development, environmental health and transport, which have been pummelled by cuts.

“The headline reduction of 0.5% fails to recognise the full story; with service pressures that amount to £212m in 2018-19 alone, the sector will have to look for savings of nearly 4.5% of net budgets in the next financial year. This comes on top of cuts of over £1bn that have been made to date and 25,000 job losses across the sector. While the reduction is within the range predicted by the WLGA, local government is still bearing the heaviest burden of austerity.”


Commenting on the draft settlement, Councillor Debbie Wilcox (Newport), WLGA Leader said: “The problem for local government is that we are now in a ‘war of attrition’. Services are wearing down to the point of collapse and the public are rightly growing frustrated in terms of paying council tax and yet seeing key community functions cut or closed.

“The whole position is unsustainable. Local authorities cannot go on to be expected to make the harshest of cuts whilst continuing to provide the same breadth and level of service; in short, something has got to give. “


Councillor Emlyn Dole (Carmarthenshire), WLGA Plaid Cymru Group Leader said: “Welsh councils will still face severe financial pressures estimated to be over £200m for the next financial year alone due to demographic factors and workforce related pressures.

“I would urge the UK Government to use its Budget announcement in November to fully fund any relaxation of the pay cap. Every 1% increase in pay costs the public sector around £100m, and £35m of that is attributable to councils.

“Our workforce deserves a pay rise. In this context, local government funding must be more flexible and the transfer of nearly £100m of grants into the settlement is a positive step. I would urge Ministers to think about the other funding flexibilities for the other £700m in grants which put an additional administrative burden on the public services.”


Councillor Hugh Evans OBE (Denbighshire), WLGA Independent Group Leader said: “The funding formula delivers a range of increases and decreases across the 22 local authorities. We need to make sure that the system takes account of the additional needs of providing services in communities with diverse needs and especially the additional costs of providing services in rural communities which are dramatically underfunded.”

Councillor Peter Fox OBE (Monmouthshire), WLGA Conservative Group Leader said: “Social services and education should be funded on equal terms with health, which means providing the £160m that both services need to stand still next year. There are also a range of preventative services within councils that will not survive unless the Welsh Government has a long hard look at the way it allocates money across the totality of public services. Ring-fencing small sums in the settlement for those services is like robbing Peter to pay Paul, as other services suffer.”


UNISON has also criticised the Welsh government’s budget for local authority spending as wholly inadequate. The trade union has warned thousands of jobs will be lost and local public services will be reduced or disappear completely because councils are under severe financial pressure.

UNISON also blasted Welsh Government’s failure to fund the implement of the Foundation Living Wage to lift thousands of council workers out of in-work poverty, something it says could have been achieved with a relatively modest injection of cash.

Dominic MacAskill, UNISON head of local government said: “Today’s news is grim indeed. People can’t understand why their library opening hours will have to be reduced or their youth club shut down in the name of austerity. Communities need quality local services otherwise they cease to be healthy and liveable places but councils are struggling to provide these and more – parks and leisure services, food hygiene and environment health services, on the meagre budgets Welsh Government has today granted.

“Savage spending cuts might be directed by Westminster Conservatives but the Welsh Government must see the lack of new money for local authorities in the announcement today will mean thousands more council jobs are lost and services at smaller councils might collapse altogether. Our warning couldn’t be starker: without a serious injection of cash, some councils will become unsustainable.”

Mr MacAskill added: “Public service workers will be incredibly frustrated their concerns are not being listened to. Welsh government has missed an opportunity to lift thousands of hard working council staff out of in-work poverty by failing to fund the Foundation Living Wage for all local government employees. They agreed this was necessary in the NHS and the Civil Service, why can’t they do it for all public service workers?”

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UK Government’s ‘considerable offer’ not enough



Breaking up's so hard to do: A UK single market on Westminster's terms

IN A speech delivered at Airbus’ Broughton HQ, Theresa May’s effective deputy, Cabinet Office Minister David Lidington, has attempted to allay fears of a Westminster power grab of devolved powers following the UK’s departure from the EU.

Mr Lidington, claimed the UK Government had made a ‘considerable offer’ to the devolved administrations with a commitment that the ‘vast majority’ of powers returning from Brussels will start off in Edinburgh, Cardiff and Belfast rather than Whitehall.

Mr Lidington, said his plans marked “a very big change to the EU Withdrawal Bill that is before Parliament and a significant step forward in these negotiations.”

He continued: “If accepted, this offer puts beyond doubt our commitment to a smooth and orderly departure from the European Union, in a way that doesn’t just respect the devolution settlements, but strengthens and enhances them.”

Mr Lidington warned that a “divided country at home” would be “weaker, less secure and less prosperous overseas​.”​

The problem with Mr Lidington’s words is that ‘the vast majority’ is not all powers currently vested in the UKs’ devolved administrations within the EU. Moreover, the clear message that the Westminster government wanted to maintain the unity of an internal market within the UK suggests that powers will have to be taken from the devolved governments and retained permanently by the UK parliament in order to make that arrangement work. However, the UK government’s stance on agriculture, a key issue for the Welsh Government, has been extensively trailed by Michael Gove and Defra ministers for months and cannot have taken it by surprise.

Mike Russell, the Scottish Brexit minister, said: “However they try to dress this up, the UK government is using Brexit to try to take control of devolved powers without the agreement of the Scottish parliament. It is totally unacceptable for the Tories to unilaterally rewrite the devolution settlement.”

First Minister, Carwyn Jones, said: “As currently drafted, the Bill allows the UK government to take control of devolved policy areas, such as farming and fishing, once the UK has left the EU. This is an unacceptable attack on devolution in both Wales and Scotland.

“We now need further progress that goes beyond warm words and I hope the ‘very big changes’ promised in the speech equate to sensible amendments to the bill which respect devolution. We will continue to work with the UK and Scottish governments to that end.”

Welsh Liberal Democrat Leader Jane Dodds commented: “Common frameworks in certain areas will certainly be important after Brexit and we would never want to put the UK’s common market at risk. However, it must be up to devolved Governments to decide if they want to enter common frameworks in devolved areas and to negotiate suitable frameworks. The UK Government cannot and must not impose frameworks on devolved Governments.

“Brexit will have huge implications for sectors such as agriculture. Brexit will cut our farmers off from their key markets and dismantle the financial support they rely on. Decisions on these vital areas must be made in Wales and address the unique needs of Welsh farmers.”

The Welsh Conservative spokesman on Europe, Mark Isherwood AM, said: “Welsh Conservatives have been steadfast in our belief that the devolution settlement must be respected with the necessary changes made to the EU Withdrawal Bill.

“As we’ve stated from the outset, we would also expect that leaving the European Union would not undermine the devolved settlement and would result in more powers making their way to the Welsh Assembly.

“It is vital that we now protect the UK’s single market and that’s why it is imperative the Welsh Government engages positively with the UK Government in this process to ensure the frameworks relating to devolved matters are agreed by all parties.”

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Wales’ housing adaptation system ‘unfair’



Critical report on adaptations: Aims to kick start much-needed improvement

THE CURRENT system for delivering housing adaptations needs to change in order to meet the needs of older and disabled people in Wales. That’s the conclusion of a report by the Auditor General for Wales.

Roughly, 70 agencies deliver housing adaptation services assisting over 32,000 people a year. Annually, over £60 million of public money is spent on these services to older and disabled people. They help restore or enable independent living, privacy, confidence and dignity for individuals and their families. Adaptations also offer an efficient and effective way of making the best use of the existing housing stock in Wales by supporting people to live independently.

The report concludes that high satisfaction ratings mask a hugely ‘complicated, reactive and inequitable system’.

The conclusions include:

Assessment processes are not streamlined or efficient, which lead to delays which can be the difference between people staying in their own homes or moving into specialist care;

The complex systems used to deliver adaptations make it difficult for people to get the help they need and often stops health professionals from using adaptation services;

There is not enough joined up working between agencies and local authorities which is making it harder for those in need to access services; and

The adaptations disabled and older people can receive are often determined by where they live in Wales and who they seek help from rather than their need;

Public bodies are not improving performance because of limited oversight of performance across Wales.

The Auditor General, Huw Vaughan-Thomas said: “Demand for housing adaptations is projected to rise. That’s why it’s so important that public bodies improve how they deliver adaptations and address the many weaknesses in the current complicated and inefficient system.

“People deserve the very best standard of service to help them live independently. Unfortunately, public bodies have failed to address some long standing weaknesses in current arrangements and disabled and older people are the ones losing out. This needs to change. My recommendations are aimed at helping kick-start much needed improvement.”

The Chair of the National Assembly’s Public Accounts Committee, Nick Ramsay AM, said: “Housing adaptations are important in helping older and disabled people maintain their independence, but today’s report shows that due to the complexity of the current delivery system, people get very different standards of service because of where they live and not what they need.

“The report’s findings highlight a range of weaknesses and highlights that the Welsh Government, local authorities, housing associations and their partners need to improve how they deliver services to some of the most vulnerable people in society.

“It is critical that action is taken now to ensure public money is spent wisely and vulnerable people are provided with the help they need.”

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Meet Barry Gardiner



Smiling now: Barry Gardiner has to explain Labour's new policy

IT WOULD be very cruel to suggest that Jeremy Corbyn’s late conversion to Britain being members of a customs union with the EU post-Brexit was motivated by crude politicking.

Labour’s Shadow Secretary of State for International Trade, Barry Gardiner, has spent most of the last twelve months echoing the ‘Brexit means Brexit’ line and rejecting any form of customs union.

If Mr Gardiner was disappointed by his leader’s very public rejection of what he had every reason to believe was Mr Corbyn’s preferred policy he had every reason to be. Especially as he now has to sell the brave new policy to the media.

Writing in The Guardian last year, Barry Gardiner said: ​”​Some have suggested we should retain membership of the customs union, the benefits of which extend to goods rather than services, and establish common import tariffs with respect to the rest of the world. But that is not possible.​”​

He continued: ​”​Other countries such as Turkey have a separate customs union agreement with the EU. If we were to have a similar agreement, several things would follow: the EU’s 27 members would set the common tariffs and Britain would have no say in how they were set. We would be unable to enter into any separate bilateral free trade agreement. We would be obliged to align our regulatory regime with the EU in all areas covered by the union, without any say in the rules we had to adopt. And we would be bound by the case law of the ECJ, even though we would have no power to bring a case to the court​.”​

In other words, Mr Gardiner believes – or at least he believed then, or perhaps he believed his leader believed, or hoped against hope someone somewhere believed – that membership of a customs union was a non-starter.

He crystallised that sentiment in one pithy phrase: ‘The 52% who voted to leave the EU would consider it a con if Britain was out of Europe but still subservient to its laws and institutions’.

What a difference six months make.

On Tuesday, Jeremy Corbyn said: “We have long argued that a customs union is a viable option for the final deal. So Labour would seek to negotiate a new comprehensive UK-EU customs union to ensure that there are no tariffs with Europe.”

Mr Gardiner, a genial-looking chap, must have remarkable self-control not to jump up from his seat and bellow, “You what?!”

So, now we have a sort of clear sort of policy placed before the public as an alternative to the Conservatives’ vision for Brexit. Whatever that is.

In fact, Mr Corbyn’s speechwriters came up with a very nice line on the chaos within Conservative ranks: “Time after time with this government, anything agreed at breakfast is being briefed against by lunch and abandoned by teatime.”

However, it is now poor Barry Gardiner who must explain Labour’s long teatime of the soul on a customs union. Genial though he appears, Mr Gardiner’s patience is about to sorely tested.

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