‘Authority needs £330m’
THE leader of RCT Council Andrew Morgan has laid bare the state of the authority’s finances, insisting more than £330m is needed from central government to meet budget pressures.
THE leader of a Valleys council says his authority needs more than £330m from central government to meet the pressures it is facing.
Councillor Andrew Morgan, of Rhondda Cynon Taf Council, said that they would need an extra £333.5m from the UK and Welsh governments next year.
He said the UK Government’s comprehensive spending review is not likely to happen and they are looking at a roll-over budget for next year.
Cllr Morgan, Labour, said they would need £78.5m extra from the UK and Welsh governments to match this year’s demand – but new pressures including teachers’ pay, pensions, other staff pay, social care, schools and others, mean they need an extra £255m on top of that.
He told councillors at the full council meeting on Wednesday, that the final Welsh Government settlement is likely to come on March 3, with the council having to set its budget by March 9.
Cllr Morgan said he hopes there aren’t too many changes between the provisional and final settlement.
He added that next year’s pressures are “substantial” and said it is absolutely clear that the governments are not going to fund the £333.5m.
The initial funding gap for 2020-21 in RCT is £15.6m but with measures put in place already, including savings on office accommodation, the materials recycling facility, day centre closures and non-residential care charges along with an efficiency target of £6m, this leaves a remaining gap of £8.3m.
The council is currently assuming there will be a flat cash settlement (no change) from the Welsh Government and is assuming a 3% council tax rise at this stage.
Councillor Mark Norris, Labour, said: “It is a dire situation unless Westminster decided to fund all these rises.
“I agree with increases in pay for staff but they have to be paid for. Welsh Government isn’t in a situation to cover it all.”
But he added that it is great that the council has made a conscious decision to set one of the lowest council taxes in Wales and continue to invest in capital projects.
Councillor Pauline Jarman pointed out the teachers’ pay issue had been devolved to the Welsh Government. Cllr Morgan accepted this but said there is still a possible consequence for Wales from English funding.
Cllr Jarman said: “Sometimes the best-laid plans fall foul. With all the uncertainties related to Brexit, the new Prime Minister, the new Chancellor and the threat of a general election, it makes this plan very vulnerable to change.
“If there is a no-deal Brexit, will the EU pledges be the same as if we had a deal or could they be withdrawn?
“Let’s hope common sense will prevail and that Wales will not face the predicted destruction, because it will devastate the Valleys.
“Where are we going to find the funding to support communities?”
Cllr Morgan said that he had been told in meetings he has attended that all funding that has been committed is absolutely secure and, with a deal, the full element is protected through the transition period up until 2022.
But with no deal, the schemes that are not committed would be lost.
Councillor Heledd Fychan, Plaid Cymru, said: “It is a depressing state of affairs. It is creating uncertainty for our communities. “There is a solution in terms of independence.”
She pointed to the recent march for independence in Caernarfon which attracted 8,000 people and asked if councillors would be joining the upcoming march in Merthyr Tydfil and whether RCT will follow Gwynedd Council in backing independence.
She said: “Rather than complaining about Westminster, let’s do something positive for Wales.”
But Councillor Joel James, Conservative, said
the Welsh economy has stagnated, with the average Scottish worker now earning £50 more than the average Welsh worker.
He said the Scottish National Party had to be bailed out because of a black hole in their budget and said it goes to show that nationalists would always have to rely on the union.
“The debate should not necessarily be about worrying about Brexit. We should welcome it and see what positives it will bring. I think we will be much better off.”
Cllr Morgan said that if independence did happen, it would be a number of years away and they need to concentrate on the medium-term financial plan and what’s happening now.
Councillor Geraint Hopkins said: “As a unionist, I will say that nothing has contributed more to this indy curiosity than Tory austerity. It is the fragmentation of Britain which is their legacy.”
Councillor Mike Powell, Liberal Democrats, said: “We can chastise Westminster but we also need to point the finger at Cardiff Bay.”
He said he doesn’t think independence would solve the problems facing Wales, which currently has a £15bn shortfall between the money it generates and that which it spends.
“I agree with increases in pay for staff but they have to be paid for. Welsh Government isn’t in a situation to cover it all.” Councillor Mark Norris