Following the publication of the provisional local government settlement today, councils are coming to terms with the cuts which they are facing in revenue and capital next year. The WLGA fully welcomes the relative protection that the Minister has given to education and social services budgets and the prioritisation of front lines services. There is no hiding from the fact however that, with ever increasing service pressures, growing demands to protect existing assets and raging inflation, councils will once again struggle to balance their budgets next year.
The WLGA understands the Welsh Government has decided not to give local councils the additional “one off” grant from the UK Government to freeze council tax, in favour of measures that will support jobs and the wider economy. Councils are however hugely conscious of pressures on household budgets and will seek to act prudently and responsibly in this tough economic climate. Thus while households in Wales are likely to face some increase in their council tax the WLGA predict that these will be at a ten year low in 2012-13.
Cllr John Davies (Pembrokeshire), WLGA Leader said:
“In terms of council tax, authorities are hugely conscious of the ongoing struggle that people in our communities face to make ends meet in their everyday finances. While there is no grant in Wales for a freeze, councils will do their upmost to bear down on costs and seek efficiencies, showing the same responsibility which last year led to the lowest average council tax rises since local government reorganisation in 1996.”
“Comparisons will inevitably be made with the council tax freeze in England but it is also important to remember that the average total band D council tax bill in Wales is around 25% less than in England”.
Cllr Rodney Berman (Cardiff), WLGA Finance Spokesperson said:
“The provisional settlement provides an average 0.2% increase in revenue funding for councils in 2012-13, a real terms cut of -4.3% when you take into account the current rate of inflation. Councils will also see a -7.4% cash reduction to their general capital budget next year alone with a further 11.5% in 2013-14. The continuing cuts to capital are a major concern to councils whose assets, such as school buildings and local roads infrastructure, are in desperate need of investment,.”
For full details of the Welsh Assembly Government’s provisional local government settlement for 2011-12 visit:
http://wales.gov.uk/topics/localgovernment/finandfunding/settlement/lgsettlement101123/provsettlement1112/?lang=en
