Council tax could soar due to funding lack

11:12am Saturday 24th November 2007

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PEMBROKESHIRE Council Tax payers could find their bills shooting up or services slashed after the county received a below-inflation settlement from the Welsh Assembly.

Pembrokeshire County Council received £154.5m from the Assembly - a rise of 2% on last year - and there were immediate warnings of sharp council tax rises or potential cuts in services. Education, in particular, could be badly hit.

In his role as education spokesman for the Welsh Local Government Association, Pembrokeshire County Council leader John Davies, said: "The Assembly needs to understand that the education funding shortfall, and the growing disparity between schools in England and Wales, can only be met by increased funding from the Assembly or increased council tax.

"The only alternative facing local government with this settlement is cuts in service - redundancies and school closures."

Cllr Davies added: "Schools won't be able to meet existing commitments let alone deliver challenging new Assembly initiatives."

The settlement, which is below the current rate of inflation at 2.2%, is equivalent to £1,317 for every man, woman and child in Pembrokeshire.

The figure was also attacked by south county Assembly Member Angela Burns, the shadow Welsh finance minister.

She said: "Our council now faces harsh choices as it has effectively been given a funding cut.

"I have real concerns about the education budget for Pembrokeshire and I do not envy the council and the tough decisions it is now faced with."

Nick Bourne, AM for mid and west Wales, called the settlement "appalling".

"How can they be expected to balance the books when they have received such a pathetic revenue increase?" he asked.

But, Local Government Minister Brian Gibbons said: "This is a realistic deal for local government in what is a tight budget for the whole of the public sector.

"I respect local democracy and trust the judgement of our councillors as they decide on local priorities and strike a fair balance between local taxation and local expenditure."