Meetings
NDM8459 Welsh Conservatives Debate - Local government funding
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Meeting: 24/01/2024 - Plenary (Item 8)
Welsh Conservatives Debate - Local government funding
NDM8459 Darren
Millar (Clwyd West)
To propose that the Senedd:
1. Recognises the vital role that councils
play in delivering public services across Wales and the funding challenges they
face.
2. Acknowledges that the Welsh Government
is receiving record levels of funding from the UK Government.
3. Notes that councils have over £2.75
billion in useable reserves.
4. Regrets that councils are consulting on
council tax rises of up to 25 per cent for the 2024-2025 financial year.
5. Calls on the Welsh Government to:
a) commission an independent review of the
Welsh local government funding formula;
b) work with local authorities to use their
useable reserves to keep council tax as low as possible; and
c) require any local authority proposing a
council tax rise of over 5 per cent to hold a local referendum and
obtain a yes vote before implementing the proposed rise.
The following amendments were tabled:
Amendment 1 Lesley
Griffiths (Wrexham)
Delete points 1 and 2 and replace with:
Recognises the vital role local authorities
play in delivering public services across Wales, the significant increases in
the local government settlement over the past 2 years, the protection of the
3.1 per cent increase for 2024-25, and the funding challenges authorities
nevertheless face.
Acknowledges that the Welsh Government
budget for 2024-25 is now worth up to £1.3 billion less in real terms than when
it was set in 2021.
Amendment 2 Peredur
Owen Griffiths (South Wales East)
Delete all after point 2 and replace with:
Regrets:
a) the chronic underfunding of Wales by
successive UK governments which impacts local authority budgets; and
b) estimates of a £750 million funding gap
by 2027 which will further entrench deprivation and inequality.
Believes that local government finances in
Wales are on an unsustainable trajectory without a fair funding model from
Westminster.
Calls on the Welsh Government to:
a) formally request the UK Government to
review the Barnett funding model on the basis of Welsh societal needs to support
all budget areas, including local authority funding;
b) urgently bring forward detailed plans
which will put local authorities and all public services on a sustainable
footing; and
c) provide guidance on how the current
Revenue Support Grant floor relates to the local government settlement for
2024-25, and develop a strategy to ensure that the Revenue Support Grant is
applied consistently through subsequent financial years.
Calls on the UK Government of the day to
always implement a fair funding formula which enables the Welsh Government to
adequately fund local authorities.
If amendment 2 is agreed, amendment 3 will
be de-selected.
Amendment 3 Lesley
Griffiths (Wrexham)
Delete point 5 and replace with:
Notes that the Welsh Government will:
a) continue to develop and maintain the
Welsh local government funding formula in partnership with local government;
and
b) continue to recognise the importance of
local democratic decision making on council budgets and public services.
Minutes:
The item started at 17.54
Voting on the motion and amendments under
this item was deferred until Voting Time.
A vote was taken on the motion without
amendment:
NDM8459 Darren
Millar (Clwyd West)
To propose that the Senedd:
1. Recognises the vital role that councils
play in delivering public services across Wales and the funding challenges they
face.
2. Acknowledges that the Welsh Government is
receiving record levels of funding from the UK Government.
3. Notes that councils have over £2.75
billion in useable reserves.
4. Regrets that councils are consulting on
council tax rises of up to 25 per cent for the 2024-2025 financial year.
5. Calls on the Welsh Government to:
a) commission an independent review of the
Welsh local government funding formula;
b) work with local authorities to use their
useable reserves to keep council tax as low as possible; and
c) require any local authority proposing a
council tax rise of over 5 per cent to hold a local referendum and
obtain a yes vote before implementing the proposed rise.
For |
Abstain |
Against |
Total |
12 |
0 |
32 |
44 |
The motion without amendment was not agreed.
The following amendments were tabled:
Amendment 1 Lesley
Griffiths (Wrexham)
Delete points 1 and 2 and replace with:
Recognises the vital role local authorities
play in delivering public services across Wales, the significant increases in
the local government settlement over the past 2 years, the protection of the
3.1 per cent increase for 2024-25, and the funding challenges authorities
nevertheless face.
Acknowledges that the Welsh Government budget
for 2024-25 is now worth up to £1.3 billion less in real terms than when it was
set in 2021.
A vote was taken on amendment 1:
For |
Abstain |
Against |
Total |
23 |
0 |
21 |
44 |
Amendment 1 was agreed.
Amendment 2 Peredur
Owen Griffiths (South Wales East)
Delete all after point 2 and replace with:
Regrets:
a) the chronic underfunding of Wales by
successive UK governments which impacts local authority budgets; and
b) estimates of a £750 million funding gap by
2027 which will further entrench deprivation and inequality.
Believes that local government finances in Wales
are on an unsustainable trajectory without a fair funding model from
Westminster.
Calls on the Welsh Government to:
a) formally request the UK Government to
review the Barnett funding model on the basis of Welsh societal needs to
support all budget areas, including local authority funding;
b) urgently bring forward detailed plans
which will put local authorities and all public services on a sustainable
footing; and
c) provide guidance on how the current
Revenue Support Grant floor relates to the local government settlement for
2024-25, and develop a strategy to ensure that the Revenue Support Grant is
applied consistently through subsequent financial years.
Calls on the UK Government of the day to
always implement a fair funding formula which enables the Welsh Government to
adequately fund local authorities.
A vote was taken on amendment 2:
For |
Abstain |
Against |
Total |
10 |
0 |
34 |
44 |
Amendment 2 was not agreed.
Amendment 3 Lesley Griffiths
(Wrexham)
Delete point 5 and
replace with:
Notes that the
Welsh Government will:
a) continue to
develop and maintain the Welsh local government funding formula in partnership
with local government; and
b) continue to
recognise the importance of local democratic decision making on council budgets
and public services.
A vote was taken on amendment 3:
For |
Abstain |
Against |
Total |
32 |
0 |
12 |
44 |
Amendment 3 was agreed.
A vote was taken on the motion as amended:
To propose that the Senedd:
1. Recognises the vital role local
authorities play in delivering public services across Wales, the significant
increases in the local government settlement over the past 2 years, the
protection of the 3.1 per cent increase for 2024-25, and the funding challenges
authorities nevertheless face.
2. Acknowledges that the Welsh Government
budget for 2024-25 is now worth up to £1.3 billion less in real terms than when
it was set in 2021.
3. Notes that councils have over £2.75
billion in useable reserves.
4. Regrets that councils are consulting on
council tax rises of up to 25 per cent for the 2024-2025 financial year.
5. Notes that the
Welsh Government will:
a) continue to
develop and maintain the Welsh local government funding formula in partnership
with local government; and
b) continue to
recognise the importance of local democratic decision making on council budgets
and public services.
For |
Abstain |
Against |
Total |
23 |
0 |
21 |
44 |
The motion as amended was agreed.