Commenting on the publication of the Welsh Government’s draft local government settlement, Russell George, Assembly Member for Montgomeryshire, has called for a rethink of the formula used to calculate funding allocations.
There was also criticism from Mr George that rural communities in Wales had been disproportionately hit by the Labour-Lib Dem budget settlement.
Councils throughout Wales have received challenging settlements, with rural communities seemingly the hardest hit. Each of the five local authorities to face the biggest cuts were predominantly rural areas.
Mr George said:
“For 9 years in a row, Powys County Council has received one of the worst local government funding settlements from the Welsh Government of all 22 local authorities in Wales.
“This year, as a result of a 4.1% budget cut, the largest in Wales, Powys will now have to find an additional £7 million of savings, in addition to the further £47 million savings it needs to make by 2020 to deliver a balanced budget. This cut means that the council has had a cumulative cut in its budget of more than 13 per cent – nearly £22m – in the last three years.
“The current system provides councils in urban south Wales with far more attractive financial settlements while the largest, most rural councils such as Powys are among those with the worst cash settlements. Powys has seen its allocation cut by 4.1% while Cardiff only has to find savings of 0.1%.
“We in Powys deserve much better and the Welsh Government must address this inequitable funding settlement. It is now essential that the Welsh Government reforms the formula which it uses to decide how much each council receives. The current system is fundamentally flawed as it doesn’t properly take into account the challenges of delivering vital public services over large rural areas of Mid Wales.
“Local people throughout Mid Wales will now be bracing themselves to see if their council tax bills have to rise as a result of the two year budget deal struck between the Welsh Government and the Lib Dems.
“The Lib Dems are propping up a Labour Government which is failing rural Mid Wales and which has wreaked immense damage on local government services in Powys.”
“As an AM representing this area, I shall be voting against this proposed budget. I also urge the Lib Dems to change their position to stand up for the people of Mid Wales.”