As one of its parting shots before the Christmas break, the Welsh Government has delivered a hammer blow to Powys by announcing the biggest cut in local government funding of all 22 local authorities in Wales.
For 9 years in a row, Powys County Council has received one of the worst local government funding settlements so we are used to receiving a poor deal from the Welsh Government.
However, at 4.1%, the scale of the proposed budget cut for 2016-17 is unprecedented and will inevitably mean that the local authority will have to find millions of pounds worth of additional savings, affecting core public services delivered by the council. This cut means that the council has had a cumulative cut in its budget of more than 13%, that’s nearly £22m in the last three years.
It has been my view for many years that an urgent rethink is needed on the formula used to calculate funding allocations. 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%. This cannot be fair and the Welsh Government should review the iniquitous way in which it allocates funds so that it becomes a government for the whole of Wales, rather than just those areas in the urban south. We in Powys deserve much better. 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. As a result, I have set up a petition, which aims to reform the local government funding formula. Please visit my website at www.russellgeorge.com/fair-funding to sign up and put pressure on the Welsh Government.
The Leader of the Welsh Conservative Group on Powys County Council, Cllr Aled Davies, has rightly pointed out that if Powys had received the same settlement as Cardiff City Council over the last 10 years, the Council would now be £38 million better off every year. This represents more than half of Powys schools delegated education budget. Just think what our cash starved schools could achieve with a 50% uplift in their budget.
Local people throughout Mid Wales will now be bracing themselves to see if their council tax bills will rise to minimise the damage of the two year budget deal struck between the Welsh Government and the Lib Dems. As an AM representing this area, I shall be voting against this unfair proposed settlement and I would urge all other Assembly Members who represent our area to do the same. It is regrettable that our Liberal Democrat representatives have indicated that they won’t vote against the Welsh Government’s budget and will allow it to pass. I hope that they reconsider as if all opposition parties present a united front, the Government will be forced to reconsider.
On a brighter note, at this time of year, I’m always pleased to be able to visit residential homes across Montgomeryshire to wish residents and staff a Merry Christmas. Over the last week, I have been delighted to visit homes in Machynlleth, Newtown, Llanidloes, Welshpool and Llanfyllin and I would like to make a special mention of the dedicated and hard working staff at all of the residential homes across the county who work so hard throughout the Christmas period.
I hope you all have a Blessed Christmas and a Happy New Year.