Local Government Minister, Brian Gibbons, on Wednesday, announced the Welsh Assembly Government's support for Pembrokeshire Council and its council tax payers in 2008-9. Pembrokeshire Council will receive £154.5 million in the revenue settlement from the Welsh Assembly Government. This is equivalent to £1,317 for every man, woman and child living in the area, which is above the all Wales average of £1,284 per head of population.
Brian Gibbons said: "The money that the Assembly Government provides is in addition to the money the council charges its council tax payers, all of which the council retains to fund local services. "I have also made available £9.2 million to support capital expenditure in Pembrokeshire - improvements to schools, roads and the equipment necessary to deliver local services. In addition, the council will receive specific grants to support a range of activities, including funding for foundation phase education, waste management and free bus travel. "In addition, the council can expect to receive £1.3 million through the Performance Incentive Grant. It will also receive a further £0.4 million to support the delivery of services in the more deprived areas. "This is a realistic deal for local government in what is a tight budget for the whole of the public sector. It builds on the substantial growth in support for councils in recent years which has allowed councils to deliver three successive years of the lowest council tax increases in Wales since the introduction of the tax. "Each local authority is responsible for setting its own budget, taking account of the money that has been made available from the Welsh Assembly Government and the level of council tax that it levies on local households. "Over 80 per cent of the support the council will receive is not ring fenced, since it is best placed to judge local needs and plan their budgets according to those needs. 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."
TOUGH DECISIONS
But the announcement has not met with a positive response, with AM Angela Burns claiming that the county's residents face council tax hikes or service cuts after a below-inflation increase in funding. "Despite inflation running at 2.2 per cent, Pembrokeshire County Council has been given just a two per cent increase in public funding," said Mrs. Burns, who is also Shadow Welsh Finance Minister. "Our council now faces harsh choices as it has effectively been given a funding cut.
"It is not going to be able to keep pace with inflation, let alone undertake and finance all the new non-funded initiatives outlined in Labour and Plaid's One Wales programme. "I have real concerns about the education budget for Pembrokeshire and I do not envy the council the tough decisions it is now faced with." Meanwhile, county council leader, Clr. John Davies, added: "I make no apologies for saying that as the increase for Pembrokeshire is less than the level of inflation, there are some difficult decisions ahead. "However many other local authorities in Wales find themselves in much worse straits than Pembrokeshire which, due to our good housekeeping, has the lowest council tax in Wales. "We are at least in a stronger financial position compared to other Welsh county councils."