No fat left to cut: Councils are buckling, but so are we

Stephen Price

In unsurprising news this week, another Welsh council declared a council tax increase for next year - a far from modest 16% rise for Gwynedd as it tries to 'balance its books'.

The same council approved an "unprecedented" 9.54% council tax rise in the current financial year - with news reports at the time urging struggling families to seek help.

Gwynedd Council’s chief executive Dafydd Gibbard has warned of “difficult decisions” ahead over the potential council tax rises and service cuts.

Councillor Paul Rawlinson described the financial picture as one of great concern, saying: “The problem is not one of over-spending, but one of underfunding. We’re just not getting enough Government resources.”

This was due to a “combination of factors” including increasing pressure on domiciliary care provision, higher staffing costs and sickness levels.

The chief executive said: “‘Overspend’ is a technical term, what it really is, is a lack of funding."

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Some good news (if you're already rich)

In brighter news for the haves, not the have nots, second homes council tax premiums in Pembrokeshire are to drop from the current 200 per cent rate to 150 per cent, despite warnings it could lead to a council tax rise next year of as much as 14 per cent - all thanks to Tory Councillor, Diane Clements.

At a meeting of Pembrokeshire County Council’s full council on 17 October, two attempts to lower the second homes council tax premium in Pembrokeshire were made, with members hearing the changes could lose the council between £2.6m and £5.2m, and could increase next year’s overall council tax rise to as much as 18.8 per cent.

Pembrokeshire is currently expected to see a slightly less hair-raising 11.14 per cent council tax rise in the next financial year - but again, this comes on the back of previous unsustainable rises for many.

Cllr Tony Wilcox said that any reduction in the rate for second-home-owners would impact on ordinary council tax-payers in the county.

“Why are we penalising 85-95 per cent of our own people to pander for a political point?” he asked, adding: “The overwhelming majority of our residents aren’t affected by this, we are going to penalise the majority.

“I really can’t see how we are contemplating really high council tax rises for the majority of our county.”

Council leader Cllr Jon Harvey, who said Cllr Murphy had previously been supportive of the 200 per cent rate, warned: “On this proposal we are talking about £2.6m loss to the council, or about three-and-a-half per cent on council tax. What additional services are you prepared to cut, or are you prepared to increase council tax over and above?

“I am not prepared to justify to our residents why I voted to reduce second homes tax and then put that burden or service cuts on them, they certainly will be worse off in my opinion if this goes through.”

That the council has, in its power, the ability to charge second home owners 300% and yet chooses to reduce the amount in the current economic climate is both bizarre and downright offensive, yet here we are.

And will these councillors get a beating at the ballot box next time they're asking Pembrokeshire residents to vote for them? I very much doubt it, since we are so estranged from the processes and the feeling of having any actual power, many of us don't even bother to vote.

I expect Diane will be rewarded by Tory supporting second home owners when the time comes. She, undoubtedly, knows where her bread is buttered.

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"No fat left to cut"

Against the backdrop of unsustainable rising council tax bills (for some of us), council chiefs have warned of “no fat left to cut” with leisure centres and libraries across Wales facing the threat of closure due to “unprecedented” financial constraints.

The Senedd culture committee took evidence from councils on October 24 as part of an inquiry on the impact of cuts on the arts, culture and sport.

Emily Owen, deputy leader of Conwy council, said: “Everything’s on the table that isn’t statutory at the moment, we’re in that much of a difficult financial situation.”

The Welsh Local Government Association (WLGA), the national voice of Wales’ 22 councils, warned spending on culture, recreation and libraries has fallen by up to 43% over a decade.

Cllr Owen said: “Last year, our economy and culture service had a 20% cut and the year before it had an 11% cut. That’s a serious amount of money that has gone from services.”

Spiralling

With the WLGA warning of a £432m funding gap across Welsh councils, Cllr Owen told the committee the council is trying to avoid closing leisure centres.

“We strongly believe that once they’re gone, they’re gone,” she said.

Entire communities (two within a stone's throw of where I'm from, namely Blaenafon and Nantyglo) now without the joy, the community, the fitness, the health and economic benefits from a leisure centre.

The impacts will be felt for generations.

The Labour councillor cautioned, quite rightly, that cuts have had a considerable direct impact on participation of the most vulnerable people amid a mental health epidemic.

Cllr Thomas, who is culture, arts and leisure spokesperson for the WLGA, told the committee Cardiff is facing a £60m gap in the coming year.

He said: “We’re at the toughest point of budget setting I think we’ve experienced even in 14-15 years of austerity.”

Cllr Thomas cautioned it is increasingly difficult to find savings after 14 years of austerity, adding that councils are overwhelmingly prioritising services in areas of higher poverty.

Drip drip drip

I'm sure I don't just speak for myself here, but I won't be seeing a 16% pay rise in April.

I didn't receive a 9.54% one this year either.

I wish shopping bills had, however, gone up by only that percentage point.

I wish my mortgage looked more like it did a few years back too, and so on and so forth.

I know a few who are shielded from the costs because of high wages, savings or through benefits and reductions, but for most of us whose financial situation lives somewhere in the vast and undefined middle ground, we're the ones with no fat left to cut.

The councillors can go home after a hard few hours talking around the table with little personal consequence, but for all their emotive language and 'understanding', it's not their money that is being cut or being used to fill the gaps, it's ours.

Answers on a postcard please

So what's the answer?

More cuts to services while more costs land on our doorsteps?

Major reform and less duplication of services, such as is happening with a shared chief executive for Torfaen and Blaenau Gwent?

300% as a bare minimum for second home owners?

Councils demanding that any wind farms in Wales that purport to produce enough energy for 'x percent' of the local populace actually get more than a few crumbs to, I don't know, provide 'x percent' of energy and profit for their own populace?

Or more rebellion, and a little more than 'please sir, I want some more' from our council leaders, who should be demanding that the Senedd and Westminster make this the urgent priority it is.

It's not just our arts and culture sectors or health and leisure services that are buckling. We are too.