Montgomeryshire MS Russell George has said the funding of local government in Wales needs to be reviewed. Concerns have been voiced over many years that the current formula is not fit for purpose.
Powys County Council, and County Councillors each year must set a budget that is balanced and by law, they are required to create a budget based on strong assumptions that show how income will be balanced against spending.
Funding is provided in the form of a block grant from the Welsh Government to each of the 22 local authorities each year. The settlement makes up 70% of Powys County Councils income, while Welsh Government funds up to 80% of income in other Council areas
The MS claims that Powys County Council has been underfunded over the past 10 years by the Welsh Government and the council has been left severely stretched, and due to underfunding, councils have been left struggling to run community services.
In a recently Senedd debate, the Welsh Conservatives brought forward a motion calling for an external independent review of the local government funding formula.
Member of the Senedd for Montgomeryshire, Russell George said:
“Over the past 10 years, rural councils have been some of the biggest losers from an outdated funding formula, I was however pleased to see an increase in funding for Powys County Council in the recent budget round.''
''Funding for Welsh councils is overly complex and, in my view, is fundamentally unfair for rural councils. Over the past two decades, councils in urban areas of Wales have seen significantly more generous funding settlements than rural councils such as Powys.''
“I was pleased to see the debate brought forward by my Welsh Conservative colleagues. We need to see a major review of the funding formula carried out urgently to ensure all parts of Wales are receiving fair levels of financial support from the Labour Government, especially as pressures are increasing on local government.”
ENDS
Notes to editor:
The Welsh Conservative full motion is below:
To propose that the Senedd:
- Thanks councillors, local authorities and their staff across Wales for their role during the coronavirus pandemic;
- Believes that Welsh local authorities must be adequately funded to enable them to deliver the high quality public services to which they aspire;
- Regrets that the current local government funding formula is not fit for purpose;
- Calls on the Welsh Government to commission an external independent review of the funding of local government in Wales to ensure it delivers fair funding for all parts of the country.
