Sioned Williams MS writes about the need for specific additional funding from Westminster
This article was published in the South Wales Evening Post on Thursday 17 October 2024.
Tata, public services and the black hole in local government finance
In all the news stories from this last week you’d be forgiven if you didn’t see one about council budget black holes. I mention it, because local authorities provide most of the frontline services that we need, particularly in times of crisis. From help with household bills, to school transport; severe weather events to help with finding a job – all these services are provided by your local council.
So when councils across Wales have to cut £540 million from their spending, it’s going to impact everyone in some way.
I recently attended a meeting with the leaders of Neath Port Talbot Council to discuss the pressure on their services due to an ongoing lack of funding. They have already had to find £45m worth of cuts over the last two years.
The Council, like all others in Wales is now planning for absolutely devastating cuts as they have seen costs increase by £22.6m and no substantial increase in funding from the Welsh Government. This will leave a projected black hole of £21.2m.
But unlike the other councils, Neath Port Talbot Council is also going to have to deal with a seismic economic shock over the next year due to the loss of thousands of jobs at Tata Steel and the supply chain.
It’s not just the 2,800 jobs going at Tata steel itself, it’s all the thousands of contractors, hundreds of local businesses and every single organisation in the supply chain that will be impacted. We’re talking tens of thousands of people.
Although the council is doing essential work to help rebuild the local economy and support the thousands who are affected - directly and indirectly - the Welsh Government has warned them to expect no increase in their main funding in the coming financial year.
So last week I asked the Cabinet Secretary for Finance, Mark Drakeford, whether the Government would call for specific additional funding from the United Kingdom Government to ensure that Neath Port Talbot Council and neighbouring local authorities get help to meet the demand extra on their services due to the economic blow to the steel industry.
I didn't get an answer unfortunately. So this week I’m asking the same question to the First Minister directly. It couldn’t be more important for her to ensure that there is special funding available in the Welsh Government’s budget for this, and also for her to make the case for this with the Chancellor.