South Wales Evening Post - 13 February 2009
Residents in Swansea are facing a rise in council tax and cuts to public services.
The council has unveiled its budget for the financial year and it could be a bitter pill to swallow for some.
In an effort to close a £14 million black hole in the council's accounts, the cabinet will be asked to approve a 4.45 per cent rise in council tax for the next financial year.
There also plans to increase charges for council services, with schools dinners expected to rise from £1.70 to £2.
At the same time, the spending budgets for council departments will fall by £7 million and the council will use its reserves to plug the gap.
Council bosses have blamed the Assembly for the situation — the Assembly grant to the local authority has been raised by 2.9 per cent.
Cabinet member for finance Stuart Rice said: "If the Assembly had given us a settlement of 4.8 per cent, as it got from central government, the council would have had £5.4 million more than it has this year.
"We could have given half the council tax rise and had £3 million more to spend on services."
Councillor Rice said: "Swansea, like every local authority and major organisation, is facing major budget pressures. Our income has fallen significantly in certain areas and our costs on items such as petrol, electricity and gas have increased. At the same time, we're earning less interest on the money we've invested due to falling interest rates.
"Against this backdrop, the council has had to tighten its belt in the same way that families across Swansea have had to look at their income and spending and try to make their money go further."
The draft budget, which will go before the council's cabinet on Tuesday, includes a proposal to increase council tax by 4.45 per cent, which should increase the total tax revenue by £3,444,000.
Council tax for a band D property in Swansea will rise from £879.25 this financial year, to £918.38 from April — a rise of £40.13.
Councillor Rice said: "This works out at 75p per week. We didn't think that we should penalise hard-working families. We have tried to keep council tax rises as low as possible."
Interest rate cuts have seen a drop in the council's return on its investments and at the same time, the council's costs, such as energy bills, have seen a dramatic increase.
Portfolio budgets for council departments have been also been slashed by £7 million, in an effort to balance the budget.
The only departments to see an increase are housing along with education whose budget is up £2.476 million, to £155,861,000.
Social services has seen it's budget fall by almost £4 million, to £84,762,000.
Councillor Rice said: "We have taken some tough decisions so that we can protect front-line services and ensure we continue to meet the needs of residents, a growing vulnerable population and visitors."
The cost of using some council services will also rise, with some charges going up.
Among a number of proposed increases in fees and charges, school meals are rising from £1.70 to £2 per meal, bulky waste charges are rising from £10 to £15 per collection and for social services users, home care/domicillary care will rise from £8.50 to £10 per hour.
Councillor Rice said the budget, which will be presented to the cabinet on Tuesday and, if approved by cabinet, will go before the full council on Monday, February 23, has successfully closed the gaping funding gap.
He said: "We have closed the gap and that has been a mammoth task."
The council's draft capital budget will also be discussed by councillors.
It outlines £44 million of investment, including redevelopment of Penyrheol Comprehensive School, Guildhall refurbishment and the maintenance of a number of schools.
Assembly Finance Minister and Swansea West AM Andrew Davies said: "This is a predictable budget from the Liberal Democrat-run council.
"I have repeatedly asked councillor Holley and his administration to take responsibility and accountability for the £14 million black hole they have created in our city's finances.
"Time and again, they have dodged the issue and sought to put the blame on the Assembly, even though they have received more money this year than last.
"The Assembly Government funds local councils in Wales more generously than English councils are funded, and as a result council tax levels in Wales are 25 per cent lower than they are in England.
"I repeat, the Assembly Government does not tell the local authority what level of council tax to levy nor how to spend its own budget."
"While leaders in the Swansea administration put their heads in the sands of Swansea Bay, they now expect homeowners to take responsibility for paying toward the Liberal Democrat's pet projects and financial mismanagement."
