The Local Government Crisis; the facts
December 15, 2022
  • There is a financial crisis affecting all councils of all political persuasions across the UK. The Welsh Local Government Association said councils faced “impossible decisions” with services at risk. The Conservative leader of the Local Government Association in England has described the situation as “disastrous” for the ability of councils to support the most vulnerable in our society.
  • Inflation, together with increased demand for services such as social care, left a shortfall in council budgets in Wales of over £500 million. 
  • The Welsh Government is to increase funding to councils by 7.9%. This is more than expected and has been welcomed.
  • A large funding gap still remains. The Welsh Government could not possibly fill this gap. Only the Westminster government can solve the crisis. Over 80% of Welsh Government funding comes in a grant from the Westminster Government. Council leaders from all four UK countries are urging the UK government to find extra funding.
  • This financial crisis was not anticipated before the disastrous Liz Truss mini budget. This created a shortfall of £30 billion in the UK government budget. In comparison, it would take just over £3 billion to meet the shortfall in UK council budgets. 
  • Newport Council has seen £90 million cut from services since 2011 under the UK government’s austerity policy. It is now facing another £27 million in cutbacks. The council must balance the budget by law.
  • Your view is important. The council has put forward a series of proposals to meet the budget shortfall and now wants to have your view. There will be a period of consultation until 2 February 2023. Join the discussion at https://tinyurl.com/2p8uukmd .

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