News from Welsh Labour

Wrexham AM challenges Welsh councils to “step up to plate” on reserves

A Labour Member of the Welsh Assembly, has challenged Welsh councils to “step up to the plate” and use part of their reserves to help the Welsh economy and save Welsh jobs, during the current economic downturn.

Wrexham AM, Lesley Griffiths, made her remarks following new reports that estimates Welsh local authorities are holding an estimated total of £625 million in reserves.

Welsh business leaders now say they want the money – a large part of which has already been allocated to fund certain projects – to be brought forward, to help companies across the country get through the global economic downturn.

Lesley Griffiths AM agrees with that view and has asked the Wales Audit Office to conduct an inquiry into the level of reserves held by Wales’ 22 local councils.

Last October, as a result of a question by Ms Griffiths during a meeting of the Assembly’s Finance Committee, the level of reserves was disclosed for the first time by the Welsh Finance Minister, Andrew Davies. The figure then stood at a massive £581 million.

Commenting on the new figure, revealed by BBC Wales, Lesley Griffiths said:

“Last Autumn, the Welsh Assembly Government quickly realised that it had a responsibility to bring forward spending on certain projects to boost the Welsh economy and help save Welsh jobs. It was an exceptional move in exceptional economic circumstances.

“Unfortunately, Welsh local authorities have not shared the same vision nor sense of urgency. Some estimates now put their total reserves as high as £625 million. A large proportion of this colossal sum is earmarked for schemes that could be of direct and immediate benefit to the Welsh economy. Companies all over Wales are crying out for work and yet councils are sticking to their investment programmes, as if nothing is happening out there in real world.

“Councils insist that their reserves are there for a rainy day – well, that rainy day has arrived and they need to undertake a collective review of what schemes can be brought forward to help Welsh companies during these stringent economic times. Welsh councils should step up to the plate on this matter.”

The AM has also revealed she has written to the Auditor General for Wales, Jeremy Colman, requesting he considers conducting an inquiry into local authority reserves in Wales.

Commenting on her letter to Mr. Colman, she said:

“There is a lack of clarity surrounding what level of reserves councils should hold and who determines that level. That is why I have asked the Auditor General to shine a light into this ‘dark corner’ of public finances in Wales.”

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