Powys' 3.7% below inflation settlement

11.00.00am GMT Wed 15th Oct 2008

Following the news that Powys is set to receive a 3.7% below inflation budget settlement from the WAG Kirsty Williams AM and Mick Bates AM have slammed the abysmal settlement which puts the county at the bottom of the table with Blaenau Gwent and the Isle of Anglesey.

After a successful meeting between the two Powys AMs, Council representatives and the Minister the provisional 0% settlement has been raised to the 1.5% floor, though an improvement this is still amongst the lowest in Wales.

Kirsty Williams AM for Brecon and Radnorshire said: "We are facing a tough financial climate with ever increasing energy costs and this real terms cut of nearly 4p in every pound will only make things worse for Powys and further threaten frontline services.

"Just yesterday the Institution of Civil Engineers highlighted that an inadequate transport network and poor transport links are threatening economic growth and quality of life in Wales, and no more so is this the case than in Powys. This poor settlement could mean that transport services actually get worse than better.

"Yet another bad settlement for Powys shows that a change in the formula used to allocate money to local authorities across Wales is desperately needed. The current formula is based primarily on demographic considerations and as it stands rural areas such as Powys lose 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.

"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 lose out."

Mick Bates AM for Montgomeryshire said: "Having fought to get a 1.5% floor, this provisional settlement still leaves Powys with severe challenges and unveils hard times ahead for our council. With a settlement so far below inflation, Powys will face the difficult choice of choosing between increasing council tax or cutting back on the delivery of front line services, both of which equal a raw deal for people across the county.

"The Labour-Plaid Government has shown a complete lack of understanding of the challenges that face rural Wales in delivering local services with such a disperse population, poor infrastructure and against a backdrop of rising fuel and energy costs.

"I believe it is vital that we look to Europe to assist areas such as Powys, which year on year are being neglected by a Labour-Plaid Government which has failed to fight for a good deal for Wales. The Assembly Government must implement a rural deprivation grant to help us through the tough times ahead, to deliver services in rural areas that often cost two to three times more than in urban areas."