News
Welsh Conservatives to force Senedd vote on council tax hikes
Emily Price
Members of the Senedd are set to vote on whether Welsh councils should be compelled to use their cash reserves as a means to avoid council tax hikes.
The motion tabled by the Welsh Conservatives will be debated in Cardiff Bay on Wednesday (March 5).
The party says councils across Wales are sitting on a "£2bn cash mountain" whilst residents are facing an average council tax rise of 7.36% with some local authorities charging even more.
Wales' 22 councils receive most of their funding from the Welsh Government, with additional revenue coming from council tax and business rates.
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'Flawed'
The Conservatives say the Welsh Government's local government funding formula is flawed because it allows some local authorities to hold over £200m in reserves, creating funding gaps between neighbouring councils.
Local authorities were given a cash boost of £253m by Welsh ministers in last month's draft budget - but councillors say this is not enough.
The Welsh Local Government Association has previously projected a funding gap of £560m with two Welsh councils saying they could be at risk of bankruptcy.
Councils often avoid using their reserves because they are intended to be a safety net for unforeseen expenses and emergencies such as flooding.
Some reserves are earmarked specifically for infrastructure projects or potential legal costs meaning they can't be used for general spending.
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Bills
Next week, the Tories will call on Welsh ministers to commission an independent review of the local government funding formula and to work with councils to ensure reserves are used to keep council tax bills low.
The motion will also call for the introduction of referendums for any local authority that proposes a council tax rise above 5%.
The Welsh Conservatives say local government in Wales needs to become "more efficient" with more cross-council working and sharing of resources and services.
Commenting ahead of the debate, Shadow Secretary for Housing and Local Government, Laura Anne Jones said: "Under the Welsh Labour Government, the Local Government Funding Formula is broken.
"It cannot be right that people in Wales are facing a 7% hike in their Council Tax, whilst Councils are sitting on over £2 billion pounds in usable reserves.
"In the Senedd next week, we’re calling on the Welsh Labour Government to fix Local Government in Wales by commissioning an independent review into the Local Government Funding Formula, whilst calling on Council Tax to be kept as low as possible, with usable reserves being used."
The Welsh Government said: "Our Final Budget is providing more than £6bn to local government through the final Local Government Settlement as well as £1.3bn in additional specific grants.
"The setting of budgets, council tax and the level of reserves are matters for the elected members in each council."
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