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Councils respond to budget cuts

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Jamie Adams: Budget balance must be redressed

WEST WALES’ local authorities have cried ‘foul’ over the funding arrangements announced for the next financial year by the Welsh Government. In common with all rural councils in Wales, Carmarthenshire, Ceredigion, and Pembrokeshire have all been told that their budgets will be cut to a greater extent than those of more urban councils. In addition, critics of the settlement have not been slow to point out that not only is the smallest budget cut for an individual local authority Cardiff’s, but that the largest sums per head of population in terms of local government expenditure are concentrated on Welsh Labour’s Valleys heartland. In an unusual turn of events, West Wales’ councils were already consulting on their budgets for next year before their own financial settlements from the Welsh Government were announced.

This has caused some confusion among members of the public, who now appear to be responding to their own individual council’s proposals on a basis that has been superseded by the Welsh Government announcement. The Welsh Government’s budget was delayed by Chancellor of the Exchequer George Osborne’s decision to delay the Autumn Statement and tie it in with announcements on Government expenditure. Among one off budget pressures already factored into this year’s local authority budget forecasts are the introduction of the National Living Wage, changes to National Insurance, and alterations to pension rules. The cuts to the Revenue Support Grant, which funds local authority expenditure, do not take account of those measures’ impacts on Council budgets. Pembrokeshire: ‘Substantial budget pressures’ Meanwhile, members of the public are being encouraged to comment on potential changes to local services on Pembrokeshire County Council’s social media pages. Over £25m in savings have already been made in the past few years but substantial savings will also need to be made in the next three to four years. Around 40 budget reduction ideas are being considered as part of a consultation on the budget for 2016 – 2017 and beyond, which the Council is currently running on its website. Cllr Jamie Adams, Leader of Pembrokeshire County Council, said: “We will be facing substantial budget pressures in 2016 – 2017, which means we need to look at making changes to services that many people use regularly.

“It is important that local people take advantage of the opportunity to give their feedback in order to help inform the tough decisions that Council will have to make in the coming months. “Encouraging debate and feedback via social media is not something that we’ve tried to this extent before and I think that it provides a fairly easy way for people to comment on potential changes to important local services.” On the Welsh Government’s financial settlement for the next financial year, in which Pembrokeshire face a 2.6% cut, Jamie Adams, said: “As a rural local authority, we seem to be particularly badly hit, with just three Councils suffering worse settlements than Pembrokeshire. “I look forward to some discussions with the Welsh Government to try and redress some of the balance.” Carmarthenshire: ‘better than anticipated’ Carmarthenshire County Council Deputy Leader and Executive Board Member for Resources Cllr David Jenkins said: “The settlement from Welsh Government of £251,685m for next year equates to a 1% decrease on the amount received last year on a like for like basis. We were planning for a 3.3% decrease, bearing in mind that every 1% increase / decrease equates to £2.5m.

“Whilst the headline figure is better than we anticipated, we need to accommodate the particular pressures placed on us including validation such as inflation and more specifically this year a £4.1m increase in National Insurance payments.” Even though the cut to Carmarthenshire was not as deep as had been feared, Cllr Jenkins nonetheless sounded a warning note: “As good as the news is it still represents a cut in the authority’s overall budget and bearing in mind there was a £2.1m shortfall in our current budget cut proposals we will still be looking for savings from relevant departments which we are currently consulting on with the public. “We are also still awaiting the full details from Welsh Government in terms of protection for education and social services. “The settlement is more favourable than we were planning but that said we still need to deliver efficiency savings of £12m.”

Ceredigion: Councillors will have to make difficult decisions Ceredigion County Council will see a cut of 3.5% to its funding from Welsh Government for the financial year 2016-17 – one of the highest to any local authority in Wales. The announcement will mean that savings in the region of at least 6% in the Council’s budget are required, as expenditure increases have to be met whilst funding levels have decreased. The Council has already made savings of £20m over the last three years, and was working towards making savings of £25m over the next three years.

However, this cut will potentially mean the Council will need to find significant additional savings over the next three years. Leader of the Council, Councillor Ellen ap Gwynn said: “Yet again, rural communities are suffering compared to urban ones. The Council is suffering one of the largest cuts to any local authority budget for 2016-17, which will result in massive pressure on Councillors to make very difficult decisions.” The money from Welsh Government has been shared among Councils according to population size and age, and deprivation levels within that local authority. A major restructure and a programme of service transformation aimed at changing how the Council is organised and works has been in place since 2013.

Despite this, further cuts to services is now inevitable, as the scope to make more efficiency savings gets harder to achieve year on year. We must avoid England’s fate: WLGA The Deputy Leader of the Welsh Local Government Association (WLGA), Cllr Aaron Shotton said: “We are also still awaiting the full details from Welsh Government in terms of protection for the system used to fund local councils in Wales is based on a complex array of grant arrangements and while many Welsh councils will today cautiously welcome the Welsh Government’s draft budget for its focus on preventative public services such as social care, we await further detail of how the budget can help to alleviate some of the mounting pressures on critical local services. “We have been clear that there is a need to rewrite the rulebook on how our councils are funded if we are to avoid a similar situation to that in England, where local public services have been cut to the bone and a number of councils face the very real possibility of being unable to meet even their most basic statutory duties. The budget announcement offers a glimmer of hope that a different reality can be written for vital local public services in Wales.”

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