Council capping threat puts vital services at risk - German

12.00.00am GMT Wed 26th Jan 2005

Assembly Minister Sue Essex has issued an unprecedented threat to cap Welsh councils - a threat that could lead to cuts in vital services across Wales.

It is the first time that the threat of capping has been used in Wales and comes in the year that local authorities are struggling to cope with the Assembly Government's misguided rebanding of homes for council tax.

Michael German, Assembly leader of the Welsh Liberal Democrats and spokesperson on local government, said: "This unprecedented announcement is a double blow to those who work in our schools, youth centres and daycare homes. Not only is Sue Essex not giving councils enough money, but she is stopping them raising the money they need to preserve existing services.

"Councils are not raising council tax because they want to. If they are proposing a raise in council tax it is because the Labour Assembly Government has failed to meet the needs of our communities. It has failed to recognise the growing role and responsibilities being taken on by local authorities.

"Sue Essex is playing a dangerous game. She has already asked councils to make 1% efficiency savings - the risk is that her actions will result in damaging cuts in vital services.

"Labour's rebanding exercise will prove costly for many households in Wales. Its random effect will strike both rich and poor, in prosperous areas, and the less affluent. The threat of capping means that some areas could have higher bills and still see cuts in services. The Minister's threats are the kind we associated with the previous Conservative government - I am disappointed to see her adopting the tactics of John Redwood."