Assembly gives council funding boost

During initial talks in November, Blaenau Gwent council was set to get a rise of just 1.8 percent (below the rate of inflation) in funding for schools and local authority services.

Of the other Gwent authorities, Caerphilly, Monmouthshire and Torfaen all netted a rise two percent or above, while Newport was also given a 1.8 percent rise.

But on Tuesday, it was announced that all local authourity funds will now be raised by a minimum of two percent to meet inflation.

Although the amount of funding that Blaenau Gwent will recieve will not be confirmed until next week, Blaenau Gwent council leader, Hedley McCarthy, welcomed the announcement.

"Blaenau Gwent council has been closely involved in lobbying for a better settlement for local authorities in Wales - and for our own area in particular.

"Together with Deputy Council Leader Steve Thomas, I was part of a delegation that met the First Minister Rhodri Morgan, Minister for Social Justice and Local Government Dr Brian Gibbons and Finance Minister Andrew Davies to discuss the financial settlement."

AM Trish Law has twice in the Assembly debating chamber and in correspondence to ministers denounced the "derisory" 1.8 per cent increase.

Although pleased with the announcement, she said: "While Andrew Davies's announcement of a floor of 2 per cent is to be welcomed, it is clearly an acknowledgement by the Assembly government that the funding formula for determining how much individual councils should get in grant is seriously flawed."

Dr Brian Gibbons, said: "I have listened carefully to the representations made by local government over the provisional settlement allocations for local authorities in Wales within the context of the Assembly Government's very tight overall budget settlement.

"I am pleased to have been able to identify additional funding for the Revenue Support Grant which will ensure that no authority receives an increase in their revenue settlement of less than two percent."