PLAID CYMRU AR GYNGOR SIR GÂR / PLAID CYMRU ON CARMARTHENSHIRE COUNTY COUNCIL

Chancellor urged to provide extra local council funding or face ‘catastrophic consequences’ for public services

Chancellor Rachel Reeves has been urged to provide substantial extra funding for local authorities in her autumn budget on October 30th. Failing to do so could have catastrophic consequences for local councils’ ability to maintain essential services like social care, education and highways, according to a Plaid Cymru Notice of Motion to Carmarthenshire County Council. (October 9th 2024)

Local authorities have had to cope with a disproportionate share of spending cuts during 14 years of ruthless Conservative Government austerity, said Cllr Alun Lenny, Cabinet Member for Resources, in proposing the Motion.

‘Due to chronic government under-funding Carmarthenshire County Council is now £120m worse off, in real terms, than we were a decade ago. It’s important to remember that we depend on the Revenue Support Grant, which comes from UK Government via the Welsh Government, for about 70% of our funding to run day-to-day services, with most of the rest being topped up by the Council Tax.

‘We desperately need extra money to meet the huge increase in demand for adult social care and children’s services, for our schools, highways and a whole host of other services on which our residents depend daily. The new Labour Chancellor could put local council funding back on a sustainable foundation by drawing on the £10b available due to the Bank of England’s decision to slow down the pace of its quantitative tightening programme.

‘We further urge the Chancellor to provide for inflationary pressures on local government budgets, and to ensure that pay settlements which are set centrally should be fully funded by central government.  

In seconding the Motion, Cllr Denise Owen warned that failing to address local authority under-funding would have serious consequences.

‘Local councils have borne the brunt of cuts, while struggling to provide vital services in the community. If this trajectory continues, the ability to maintain these basic public services will be significantly compromised.

‘This is an extremely worrying time for all councils and their staff, with many now teetering on the brink of financial disaster. As UNISON general secretary Christina McAnea said, countless essential services and very many vital jobs are at risk, with terrible consequences for communities across Britain.

‘It is both a moral and practical imperative for the Chancellor to act in the Autumn Budget to ensure that local councils can continue to serve our communities. Failure to do so risks catastrophic consequences for social welfare, economic stability, and public infrastructure.’