Support quality, independent, local journalism…that matters

From just £1 a month you can help fund our work – and use our website without adverts. Become a member today

A Senedd Member has called on the Welsh Government to give advice to councils over the use of reserve funds.

Peredur Owen Griffiths MS, who was elected to the Senedd for the first time at last month’s election, brought up the issue while asking a question to the Welsh Government’s Finance and Local Government Minister, Rebecca Evans.

Mr Griffiths, who represents the South Wales East region for Plaid Cymru, called for the Welsh Government to take action to ensure the reserve money is used to ‘ease the burden’ on council tax payers.

As of January this year, Caerphilly County Borough Council had more than £140 million in useable reserves – which is one of the highest levels in Wales.

Speaking in the Senedd, Mr Griffiths said: “Covid has undoubtedly had a big impact on public finances and local authorities have been no exception.

“The way in which the public sector has come together and given up resources to help in the fight against the pandemic has been inspiring.

“I’m also aware that some councils in Wales have been unable to spend some of their budgets, as operations have ceased or been curtailed in certain sectors.”

He continued: “For example, I’m aware of some community councils who have built up significant reserves as the things that they normally spend money on, they haven’t been able to because those have been on stop.”

Mr Griffiths then asked: “Is there any advice that this government can issue to councils, whether it county or community, about the use of reserves in mitigating against the impact of reduced income in other areas, and easing the burden on council tax payers?”

In response, Government Minister Ms Evans said: “If there is additional income now in reserve, I think it could be an opportunity for local authorities and those local town and community councils to be considering what their contribution might be as we move into the recovery, and what their own local communities are telling them that they would like to see that investment in.”

Ms Evans added: “We’ve been really conscious of lost income for local authorities in particular and, as a result, Welsh Government has provided £190.5 million to support local government in terms of lost income.

“That includes lost income from adult social services for which they would normally make a charge, other services such as planning where they might look to make income, services such as theatres, which lots of local authorities run, and catering services, and so forth.”

In February, Caerphilly County Borough Council’s cabinet released it’s budget for the upcoming year. The budget included a 3.9% council tax increase – but no new cuts to services.

The increase in council tax meant an extra 89p a week on a band D property, or 59p on a band A house.

The council tax rise will contribute £3m to a £14.1m budget shortfall, with previously approved cuts making up £2m and the Welsh Government settlement the remaining £9m.