North Wales MS Mark Isherwood has challenged the Cabinet Secretary for Housing and Local Government over the poor funding settlements that have been allocated to North Wales Local Authorities over many years, referring to the impact this has had in Flintshire.
In yesterday afternoon’s meeting of the Welsh Parliament, Mr Isherwood asked the Cabinet Secretary how the Welsh Government is ensuring the financial stability of local authorities.
After the Cabinet Secretary replied “There is a robust framework for financial decision making and accountability for local government, including internal and external audit and local scrutiny”, Mr Isherwood referred to poor funding settlements received by Local Authorities across North Wales over many years, and concerns raised by Flintshire County Council’s Chief Executive.
He said:
“Well, for more than two decades I've been highlighting the unfair financial impact of the Labour Welsh Government's Local Government Funding Formula on Local Authorities always left near the bottom, including Flintshire. Speaking here nearly five years ago, I noted that Flintshire was again amongst the Councils facing the largest cuts, despite Flintshire Councillors' ‘Back the Ask’ campaign, calling for a fair share of funds. Speaking here in March, I raised concern that four North Wales Councils were again amongst the six receiving the lowest settlements in Wales.
“In September, an Audit Wales Report concluded that Flintshire Council's external financial sustainability was at ‘serious risk’. How, therefore, would you respond to the statement last week by Flintshire's Cabinet Member for Transformation and Assets that 'It's a very odd situation when Audit Wales are asking us to look into the medium to long-term when Welsh Government can't even provide us with a three-year estimate of what we are supposed to receive', and to the statement by the Council's Chief Executive that 'In Flintshire a consistently low-funded Council is a contributory factor in relation to where we are today'?”
Responding, the Cabinet Secretary said:
“In terms of the funding formula, over three quarters of the funding formula distributed through the local government settlement formula relies on data that is updated annually. I've discussed the formula with a number of local authority leaders over recent weeks, and I'm committed to working with local government in partnership with them on this.
“Each year, some authorities experience smaller increases than others due to relative changes in, for example, population and pupil numbers, but it's important to remember that the formula operates on relative change. An authority may be showing reduced population but the important factor for the formula is how those changes compare with other local authorities. But, as I said, this is something that we do with local government, rather than to local government.”
Speaking after the meeting, Mr Isherwood said:
“Data is updated on measures within this outdated funding formula which omit key population characteristics and needs.”
