Councils face funding Groundhog Day - German

12.00.00am GMT Tue 17th Jan 2006

Councils in Wales face a funding Groundhog Day from the Labour Assembly Government each year, according to Mike German, Assembly leader of the Welsh Liberal Democrats.

Speaking in the Assembly today, Mr German presented evidence that the current funding formula for local government simply doesn't work. He unveiled a list that showed that it's the same councils that lose the most in each year's funding settlement.

He said: "The present system means that the same councils year after year get a poor settlement, and the same authorities seem to get the best settlement.

"Those authorities with poorer populations should get more money - but that doesn't and shouldn't account for the annual increases in funding being so divergent.

"Merthyr, Vale of Glamorgan, Wrexham and Monmouthshire have been in the top 5 losers in two of the three previous settlements. However, Cardiff is consistently the big loser - it has been in the top 5 losing authorities for each of the last three funding rounds. These councils have to suffer this funding Groundhog Day each year from the Labour Assembly Government.

"The Assembly Government has taken the 'floor' - a guaranteed increase in the revenue support grant - out of the 2006/07 settlement. We should have a system where year-on-year changes are fairly minimal and predictable so that forward planning and budgeting is easy for councils. Putting in, and taking out floors, prevents such easy planning."