News from Welsh Labour

In reserve: AM’s “disbelief” at Welsh councils’ cash stash

A Labour AM who asked a Welsh Assembly Government Minister if he knew how much Welsh local authorities held in bank reserves, has expressed her “total disbelief” on discovering the amount far exceeded half a billion pounds.

Wrexham Assembly Member, Lesley Griffiths was commenting after she put the question to Welsh Finance Minister, Andrew Davies during a meeting of the Assembly’s Finance Committee.

In his reply, Mr. Davies told Ms. Griffiths that the total held by Welsh councils stood at a massive £581 million. He also revealed that proportionately, Welsh Councils remarkably, held much larger reserves than the Welsh Assembly Government itself.

Ms. Griffiths had in the previous two weeks urged her own local authority – Wrexham County Borough Council – to use its reserves to reduce council tax increases in the coming financial year to help Wrexham people during the current economic downturn. It was this call that prompted her question to the Minister in Committee about Wales as a whole.

Commenting after the meeting, Lesley Griffiths AM said:
“I asked the Minister this question because I have been urging Wrexham Council to use their reserves to mitigate against the effect of council tax rises next year on my constituents.

“What I was not prepared for was the answer he gave me. Half a billion pounds is a vast amount of money for councils to hold in reserve and I was quite frankly in total disbelief when I heard the figure mentioned. Even the Minister seemed shocked by what he had discovered in recent days about the amount local authorities are keeping stashed away in the bank.

“I hope Welsh councils don’t go down the line of finding every excuse under the sun, to explain why they need these huge sums. In the current economic climate people are becoming increasingly anxious about council tax increases next Spring. I believe Welsh local authorities now have a moral obligation to take a good look at the levels they hold in reserve and how some of that money can be used to reduce the burden on people next year.

“I think the revelatory answer given to my question by the Minister, puts local government finances in Wales under the spotlight as never before. People all over the country will be rightly asking for reductions in council tax levels as a result of this disclosure. I hope Welsh councils respond positively.”

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