Rhodri ready to cap councils for second year - German

3.08.30pm GMT Tue 31st Jan 2006

First Minister Rhodri Morgan today signaled his willingness to cap councils in Wales for a second year running - and block spending on frontline services.

Until last year, Welsh councils had always had the power to set their own spending priorities. But last year Labour Ministers intervened to prevent councils meeting the needs of their local area.

Quizzed by Welsh Liberal Democrat Assembly leader Mike German at First Minister's Questions today, Mr Morgan twice refused to rule out capping again.

Speaking afterwards Mr German said: "Last year the Labour government threatened to cap local councils - a measure so extreme that even John Redwood didn't do it when he was Secretary of State for Wales.

"Now Rhodri is again threatening local decision making, by insisting that councils spend according to his priorities, rather than the people they serve.

"This interfering, centralising approach is strangling local democracy and threatens our frontline services.

"I believe this Assembly needs to pass powers on, Develop Devolution, and strengthen local democracy. I believe that capping undermines that.

"The First Minister seems hell-bent on going as fast as he can in the opposition direction."