With Local Authorities across Wales struggling to manage their budgets due to the Covid-19 pandemic, Shadow Local Government Minister Mark Isherwood MS has called on the Finance Minister to provide them with the ongoing financial support they will require.
Questioning the Minister, Rebecca Evans MS, in the Welsh Parliament on Wednesday, Mr Isherwood referred to warnings in the Welsh Local Government Association Finance Sub Group Report ‘Covid-19 Income and Expenditure Survey for Quarter Two and Future Budget Pressures’, that although “The Welsh Government has had funding of at least £280m in consequentials covering like-for-like expenditure in England and may receive more”, “there is the potential for budget shortfalls depending on several complex and inter-linked factors…. a downside scenario puts this at £475m”.
He spoke of the concerns of Councils in North Wales and asked the Minister to respond to their calls for assurances that the lost income and additional expenditure resulting from decisions made by the Welsh Government will continue to be met by the Welsh Government.
He said:
“Addressing deficits this large in the current financial year will require discussions across levels of government”.
“The Welsh Local Government Association (WLGA) Chief Executive said today that the current situation made it very difficult for Councils to plan financially, so I'm surprised you haven't heard that. Flintshire said "managing the budget in a changing and fast moving climate is proving very challenging", while Gwynedd described its financial situation as again being “very challenging”.
“How do you therefore respond to calls from North Wales, but representing the whole of Wales, for assurances that decisions by Welsh Government resulting in income lost and additional expenditure due to COVID continue to be met by Welsh Government, and that Council Tax collection losses are supported, and for clarity on what options for Local Authority borrowing may be permissible to meet funding pressures? That was put to me today”.
In her response, the Minister said: “I don't disagree with local authorities that this is an extremely challenging situation, and budgeting is extremely challenging, but I think that this pot of money, which we worked with local authorities to develop does give that certainty that the funding is there.”