Powys Stands United Against Budget Bombshell

4.00.00pm UTC (GMT +0000) Tue 11th Dec 2007

kirsty and Powys Cllrs discuss the local government budget settlement

Elected members of Powys County Council have today travelled to the Senedd to lobby the Welsh Assembly Government for a better deal for Powys County Council following the disastrous draft budget announcement. Local Lib Dem Assembly Members Mick Bates and Kirsty Williams have met with the councillors to discuss the budget bombshell which could leave Powys facing massive cuts across the board.

The 1% budget settlement for Powys is the lowest in Wales and will threaten the delivery of services across the county. Local county councillors from all parties have united to lobby for a better budget settlement, which takes into account the higher costs of service delivery in rural areas of sparse population and poor infrastructure. Commenting Montgomeryshire AM Mick Bates AM said:

"This budget settlement is a disgrace - the Labour-Plaid Government has failed to secure a decent settlement from Westminster but we must not be forced to suffer from their shortcomings. The 1% budget increase will leave a huge funding shortfall that will put immense pressure on the delivery of front-line services.

"The Welsh Liberal Democrats are firmly behind Powys Council in their call for an Assembly Government funded 1.5% floor for Local Government Settlements. This 1.5% floor will not solve the crisis that this Labour-Plaid Government has created, but it will go some way to alleviating the immense challenges that rural Wales will face in delivering vital local services with such a tight purse-string."

Commenting Brecon and Radnorshire AM Kirsty Williams:

"What is needed is a change in the formula used to allocate money to local authorities across Wales. The current formula is based primarily on demographic considerations and as it stands rural areas such as Powys loose out because whilst their population may be less than the more densely populated urban centres, the logistical costs of delivering services in the largest county in Wales are clearly much higher.

"This is clearly illustrated by the change in the formula for road maintenance from a formula based on an allocation of 50% for population and 50% for road length to a formula based on 54% for population and road use and 46% for road length. Whilst this may initially appear to be a very insignificant change, the fact that Powys has the greatest road length in Wales means this change is costing a rather significant £2.7m over 3 years.

"We need a fairer system that takes local exceptions into account so that the real cost of service provision is met and our rural areas do not further loose out."

Notes:

The settlement in 2007-08 was increased by 3.7% compared to the Welsh average of 4.3%.

The 2006-2007 increase was 5.0%, compared to the Welsh average of 4.4%.

The 2005-2006 increase was 5.5%, compared to the Welsh average 5.1%