Yesterday’s Draft Welsh Budget shows a real term cut in local government revenue funding for 2012-13. Coupled with high inflation and ever increasing demand for high quality services, councils will struggle to balance their books next year. Local government also recognises the significant financial pressures facing Welsh households as a result of rising inflation, food and energy bills. The WLGA therefore supports calls to use the extra £40 million announced by the Chancellor to freeze council tax or support local council services.
Cllr John Davies (Pembrokeshire), WLGA Leader said:
“In terms of council tax, authorities are hugely conscious of the financial difficulties facing people in our communities at the moment as they deal with rising living costs. While local government is doing its utmost to bear down on costs and seek efficiencies, they are facing a real terms cut in funding so without additional money freezing council tax is not a realistic option.”
Cllr Rodney Berman (Cardiff), WLGA Finance Spokesperson said:
“Councils are facing a second year of reductions to their revenue and capital budgets which will lead to very difficult decisions as they try to protect frontline services and minimise council tax increases at a time when household budgets are being so hard hit.”
“The Chancellor’s announcement of extra funding for Wales to freeze council tax is clearly underpinned by the need to benefit council tax payers. As such we would urge the Welsh Government to ensure this funding comes to local government, so bringing Wales fully in to line with the existing Council Tax freezes in England and Scotland.”
