Further budget cuts are expected at Caerphilly County Borough Council after the Welsh Government announced it was reducing its funding by 3.4% for next year – equivalent to £9.2 million.
The local authority will receive £263.497m from the Welsh Government in 2015/16, Public Services Minister Leighton Andrews has announced.
Caerphilly Council leader Keith Reynolds said: “We recognise that the Welsh Government is in a difficult position due to the reduced settlement from UK Government and the increasing pressures on the health service.
“Nevertheless, it seems that today’s announcement means that we will be forced to find savings of around £10m next year and around £30m in total over a three year period.
“We will now carefully consider the implications of this announcement and prepare our draft budget proposals for consultation with the wider community.”
Announcing yesterday how much each council in Wales will receive in Revenue Support Grant, Minister Leighton Andrews said the total funding of £4.124 billion was an overall decrease of 3.4%.
He said: “The settlement I am announcing today is challenging but this is a consequence of the large scale budget reductions being imposed by the UK Government.
“The Welsh Government’s budget for 2015/16 will be around 10% lower in real terms compared with 2010/11. However, unlike England, we have protected Local Authorities in Wales from the bulk of these cuts over the past five years. Spending on local services in England has decreased by around 7% in cash terms, while in Wales it has increased by 3%.
“I am providing an additional £10 million in recognition of the importance of strong local social services to the long-term success of the health service in Wales and will continue to protect schools funding in line with our commitment to provide an increase in resources at 1% above the overall change in the Welsh Budget.
“When Local Authorities draw up their budget plans for next year I expect them to look at all income streams, including council tax and income from fees and charges. In setting Council Tax levels I urge them to balance the funding challenges they face with consideration of the financial burden facing households.”
Welsh Conservative Shadow Minister for Local Government Janet Finch-Saunders AM described Labour’s budget as “demanding”.
She said: “Supported by the Liberal Democrats, this demanding budget will mean difficult decisions and a forensic scrutiny of council spending.
“Efficiency must be prioritised, wasteful spending rooted out, tax collection rates radically improved and services delivered in more imaginative ways.
“Transparency is key to this and all councils should follow the lead of Conservative-led Monmouthshire, where expenditure is published online.
“Welsh Conservatives have long called for Labour to introduce a council tax freeze in Wales, as there has been in England since 2010.
“This would have eased the pressure on hardworking families and facilitated the prevention of huge hikes in bills.
“We fear today’s settlement will lead to more rises and further pressure on household incomes.”
As sure as night follows day we all know that yet again council tax in Wales is going to increase considerably and unfairly, whilst council tax in England has generally been frozen since 2010. Heaven help us if Wales ever gets the power to increase income tax – there will be a mass exodus over the border to that green and pleasant land….and lower taxes.
Yes, and I’m sure you remember that council tax was re-banded in Wales, but not England, to the detriment of most householders. This was pushed through for the reason that “house prices had risen.” This is a spurious argument, the bands are proportional and need never to be adjusted for existing properties, a two bed terrace is still a two bed terrace even if it is worth more than when it was banded originally.
This re-banding has never been done in England and has not caused the slightest problem as tax rises in proportion to the type of property property. In Wales I, like many other people, found my house had leapt a band higher despite it being structurally unchanged. I do not remember a single squeak of protest at this daylight robbery from the Welsh politicians.
A £10m saving on a £263.497m budget is hardly anything. Take a look at the two budgets publically available online to see the wastage.
http://www.caerphilly.gov.uk/pdf/Council_Democracy/statement_of_accounts_2013.pdf
http://www.caerphilly.gov.uk/pdf/Council_democracy/budget_proposals_2014.15.pdf