Swansea East Assembly Member Mike Hedges has today welcomed the news from the Welsh Government that local authorities in Wales will be able to benefit from a new funding scheme to address the pressure on road maintenance budgets.
The Local Government Borrowing Initiative (LGBI), which has also been warmly welcomed by the Welsh Local Government Association (WLGA), will allow Welsh local authorities to increase borrowing facilities to invest in local highway improvement schemes.
Under the initiative, an extra £170millon of additional capital funding will be made available for all 22 local authorities in Wales to invest in the enhancement of highways over the coming 3 financial years.
Speaking on the initiative, Mike Hedges AM, said:
“I’m pleased with today’s announcement from the Welsh Government about the new Local Government Borrowing initiative, especially as I’ve pushed this matter with the Government since entering the Assembly last May.
“At the end of last year, we saw the Welsh Government provide an increase in the local government settlement, with Swansea Council set to receive an increase of 0.5% for 2012 – 2013. We also saw a pledge from the Local Government Minister to protect key council services, including social care and schools, especially since there is considerable pressure on services during these difficult financial times.
“What we are seeing today is a further commitment from the Welsh Government to invest in another important service; that being the maintenance and development of our highways network in Wales.
“Providing local authorities, like Swansea Council, with increased borrowing facilities will not only help create some much needed jobs in the construction sector, but will also assist considerably in improving and strengthening the transport infrastructure.
“I would certainly encourage Swansea Council to take advantage of this new borrowing scheme, with a view to creating some local jobs as well as dealing with Swansea’s pothole problem.”
Local Government Minister, Carl Sargeant AM, said:
“The Local Government Borrowing Initiative will result in a significant increase in the ability of local authorities to fund major improvements to our highways by targeting the problems that exist in the road network.
“By freeing up this funding we will be able to improve the condition of our roads, reduce travel times and by reducing potholes increase safety for motorists, cyclists and pedestrians. This new investment will be providing the Welsh economy with a considerable and much needed boost in terms of jobs in the construction sector.”
Finance Minister, Jane Hutt AM, added:
“We are currently working on our Wales Infrastructure Investment Plan which will act as a shop window to the Welsh Government’s major investments in infrastructure. The LGBI is exactly the kind of investment that will support the Plan.
“The Plan is ensuring that we are clear and transparent about how we turn our priorities into investment and will not only provide an insight for the private sector into the future direction of Welsh Government investment, but will also provide context for our infrastructure investment.”
