Randerson slams local government settlement

9.43.00am BST (GMT +0100) Wed 15th Oct 2008

Jenny Randerson has always campaigned for a fair funding deal for local authorities

Commenting on the announcement of the local government settlement for 2009-10, Welsh Liberal Democrat finance spokesperson Jenny Randerson said:

"This provisional settlement reads like a list without winners. Every council in Wales is to receive a settlement significantly below what they need. All councils will be facing the starkest choice between cutting services and raising council tax.

"Just 24h ago the rate of inflation reached a 16 year high, with the CPI hitting 5.2%. None of our local authorities will get within 1% of that. And the average is some 2.3% below. For the councils with the worst deals, that figure is 3.7% below inflations - real terms cut of nearly 4p in every pound.

"The facts are very simple - the total pot available for local government is just too small.

"The Finance Minister and his colleagues needs to go back to the books and think again. At a time when the government should be helping local authorities to keep council tax down, they are turning their backs on hard working council taxpayers."

Notes:

In a written answer to the Welsh Liberal Democrats, Finance Minister Andrew Davies confirmed that the budget was based on the assumption that inflation would remain at 2% for the three year period of this CSR (Comprehensive Spending Review).