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| Welsh councils' budgets announced | Welsh councils' budgets announced |
| (35 minutes later) | |
| Details of cuts to every local councils' budget from the Welsh government have been announced. | |
| Funding for Ceredigion, Denbighshire and Powys will fall by 4.6% but Newport will only experience a 1.2% cut. | |
| Prior to the announcement, the Welsh Local Government Association (WLGA) warned that most councils were unprepared for the scale of cuts. | |
| Many of Wales' 22 councils have already started to plan for how they will meet their budget shortfalls. | |
| It is expected that cuts to services such as libraries, refuse collections and public toilets will be made across the country. | |
| The government's draft budget last week prioritised the health service, with £570m extra for the NHS. | The government's draft budget last week prioritised the health service, with £570m extra for the NHS. |
| Making the announcement, local government minister Lesley Griffiths said the total settlement was £4.26bn. | |
| She acknowledged the situation was "extremely challenging". | |
| The minister said she had included a mechanism ensuring no single council faced an "unmanageable reduction in their allocation" compared to last year, and had transferred over £30m in grants to give councils greater flexibility in managing resources. | |
| "I could not have been clearer about the future financial reality facing local government in Wales and I have provided warning of the likely shape of budget reductions," Ms Griffiths said. | |
| "For the last three years, the Welsh government has shielded local government from the full force of the cuts to allow them to prepare for the transformational change necessary to maintain vital local services, whilst limiting any additional financial pressure on hard-pressed households." | |
| She said a consultation period would begin now which would end on 20 November. | |
| Conservative local government shadow minister Janet Finch-Saunders said: "Labour, the nationalists and Lib Dems agreed a very challenging settlement for Welsh local authorities, which means tough decisions and a forensic scrutiny of council spending. | |
| "The challenge for local authorities is to resist the easy options of putting up the Council Tax bills of hardworking families or cutting frontline services. | |
| "Welsh councils need to go through their budgets line by line and eliminate wasteful spending, improve their tax collection rates and deliver services in more imaginative ways. | |
| BBC Wales' economics correspondent Sarah Dickins writes: | |
| Councils have known for months that they will have many millions less to run public services such as social care, school dinners, leisure centres and roads than they have had this year or, for that matter, the year before. | |
| On Wednesday, each council is hearing exactly how much it will be given from the Welsh government - and that cash accounts for 80% of council income. | |
| Across Wales local authorities know that when they hear the amount they will get, it will no longer be about tightening belts or pay freezes but about coping with deep cuts in funding. | |
| They may have to axe some services that we take for granted or get a private company or a voluntary group to take it over. | |
| One thing is certain, big changes are on the way. | |
| From April, Welsh councils will receive £4.6bn from the Welsh government which is £175m less than last year. | |
| They get roughly the same proportion, with allowances if they have for instance a higher proportion of older people or school pupils, more roads or if they represent sparsely populated areas. | |
| On top of that 40% of council money is ring-fenced for schools and around 25% is protected for social services. | |
| That leaves 35% for everything else - rubbish collections, parks and libraries, the long-term debts - and it is here that cuts will fall. | |
| BBC Wales' business correspondent Brian Meechan writes: | BBC Wales' business correspondent Brian Meechan writes: |
| Councils have a number of options on the table as they face the squeeze. | Councils have a number of options on the table as they face the squeeze. |
| Staff costs make up the bulk of most spending on public services. A Wales Audit Office report said the public sector would need to "identify novel ways of reducing their staffing bills". That could mean flexible working, with reduced hours or moving from full-time to part-time work. | Staff costs make up the bulk of most spending on public services. A Wales Audit Office report said the public sector would need to "identify novel ways of reducing their staffing bills". That could mean flexible working, with reduced hours or moving from full-time to part-time work. |
| It could also mean councils outsourcing some services, for example benefits, computing and technology, and facilities management, to private companies. This can involve the whole scale transfer of staff to the private sector but doesn't necessitate that. | It could also mean councils outsourcing some services, for example benefits, computing and technology, and facilities management, to private companies. This can involve the whole scale transfer of staff to the private sector but doesn't necessitate that. |
| Private companies have not proved a popular choice in Wales where local authorities have seemed reluctant to use them as a solution to their financial woes. It's also unpopular with trade unions. | Private companies have not proved a popular choice in Wales where local authorities have seemed reluctant to use them as a solution to their financial woes. It's also unpopular with trade unions. |
| But in England, it's a route that many councils have gone down. | But in England, it's a route that many councils have gone down. |
| Mouchel is one company that's profited from this approach. In partnership with Balfour Beatty Infrastructure Services, it maintains highways, road markings, public lighting and street signs for Westminster Council. | Mouchel is one company that's profited from this approach. In partnership with Balfour Beatty Infrastructure Services, it maintains highways, road markings, public lighting and street signs for Westminster Council. |
| Meanwhile, Capita runs Service Birmingham, a joint venture with the council that provides IT services. The company says the partnership has led to improved services, reduced costs and created a more efficient, motivated workforce. | Meanwhile, Capita runs Service Birmingham, a joint venture with the council that provides IT services. The company says the partnership has led to improved services, reduced costs and created a more efficient, motivated workforce. |
| But there are those who believe that public services shouldn't be about creating profit for private companies and they're sceptical of the claims of improved efficiency. | But there are those who believe that public services shouldn't be about creating profit for private companies and they're sceptical of the claims of improved efficiency. |
| The issues around profit and public services are what's led to a growth in Wales in what's come to be known as the "third sector"- it's neither public nor private. | The issues around profit and public services are what's led to a growth in Wales in what's come to be known as the "third sector"- it's neither public nor private. |
| While charities are a part of this, it goes beyond them to describe other organisations that are run as businesses with any profits being reinvested into the business or in other social activities. | While charities are a part of this, it goes beyond them to describe other organisations that are run as businesses with any profits being reinvested into the business or in other social activities. |
| Many of those third sector organisations are coming together in Cardiff today for the Social Enterprise Wales Conference and councils will almost certainly be looking at how much bigger a role they can play in future provision of services. | Many of those third sector organisations are coming together in Cardiff today for the Social Enterprise Wales Conference and councils will almost certainly be looking at how much bigger a role they can play in future provision of services. |
| Some of the bigger examples of these are housing associations. | Some of the bigger examples of these are housing associations. |
| The growth in these over the last decade or so came from some authorities transferring the ownership of their housing stock to not-for-profit housing associations including Valleys to Coast which took over Bridgend's properties. | The growth in these over the last decade or so came from some authorities transferring the ownership of their housing stock to not-for-profit housing associations including Valleys to Coast which took over Bridgend's properties. |
| Neath Port Talbot council's leisure facilities meanwhile are run by the not-for-profit Celtic Leisure. It was set up in 2003, long before the financial crash and the cutbacks. | Neath Port Talbot council's leisure facilities meanwhile are run by the not-for-profit Celtic Leisure. It was set up in 2003, long before the financial crash and the cutbacks. |
| It's also happened on a smaller scale when local communities have come together to keep facilities going when they were threatened with closure, Harlech Swimming Pool and the Swansea Tennis Centre being two successful examples. | It's also happened on a smaller scale when local communities have come together to keep facilities going when they were threatened with closure, Harlech Swimming Pool and the Swansea Tennis Centre being two successful examples. |
| Of course, councils could save by working more closely together as the Welsh government has asked them to do. | Of course, councils could save by working more closely together as the Welsh government has asked them to do. |
| Their track record though is far from convincing. | Their track record though is far from convincing. |
| In 2012, Conwy and Denbighshire councils scrapped plans to merge highways departments. | In 2012, Conwy and Denbighshire councils scrapped plans to merge highways departments. |
| The 22 councils are also supposed to be working together in 4 regional consortia to improve schools which the Education Minister, Huw Lewis, told Good Morning Wales earlier has "not been functioning very well". | The 22 councils are also supposed to be working together in 4 regional consortia to improve schools which the Education Minister, Huw Lewis, told Good Morning Wales earlier has "not been functioning very well". |
| If councils can't make savings by co-operation, attention may turn to whether there needs to be a reduction in their number as has happened with Local Health Boards. | If councils can't make savings by co-operation, attention may turn to whether there needs to be a reduction in their number as has happened with Local Health Boards. |
| Supporters of reorganisation say it will lead to savings as departments and senior roles are merged. | Supporters of reorganisation say it will lead to savings as departments and senior roles are merged. |
| Those against argue that it would be a fraction of cuts that are required and would result in years of problems as councils are distracted from the task of delivering services within tightening budgets while dealing with dramatic changes to their organisations. | Those against argue that it would be a fraction of cuts that are required and would result in years of problems as councils are distracted from the task of delivering services within tightening budgets while dealing with dramatic changes to their organisations. |
| BBC Wales' arts correspondent Huw Thomas writes: | BBC Wales' arts correspondent Huw Thomas writes: |
| The amount of money that councils spend on the arts and culture is a relatively small proportion of the overall pot, but these services are often funded without any statutory obligation by the local authorities. | The amount of money that councils spend on the arts and culture is a relatively small proportion of the overall pot, but these services are often funded without any statutory obligation by the local authorities. |
| The situation means there's never any certainty that the funding will continue if the financial climate deteriorates, and the prospect of a significantly tougher 2014/15 local government settlement has already prompted councils to review the services that they fund. | The situation means there's never any certainty that the funding will continue if the financial climate deteriorates, and the prospect of a significantly tougher 2014/15 local government settlement has already prompted councils to review the services that they fund. |
| Cardiff council has proposed completely cutting the annual grants it gives to some arts organisations in order to save more than £220,000 - which includes stopping a grant worth £161,001 for Sherman Cymru. | Cardiff council has proposed completely cutting the annual grants it gives to some arts organisations in order to save more than £220,000 - which includes stopping a grant worth £161,001 for Sherman Cymru. |
| Flintshire council is reviewing the annual amount it gives to Clwyd Theatr Cymru, which received £1m from the local authority in 2012/13. | Flintshire council is reviewing the annual amount it gives to Clwyd Theatr Cymru, which received £1m from the local authority in 2012/13. |
| Other local authorities are also reviewing the non-statutory services they fund, but some councils are also seeking to protect the cultural services that they consider to be a key part of their strategies for attracting tourism and investment. | Other local authorities are also reviewing the non-statutory services they fund, but some councils are also seeking to protect the cultural services that they consider to be a key part of their strategies for attracting tourism and investment. |
| Swansea is currently bidding to be named UK City of Culture 2017, and its joint bid with Carmarthenshire and Neath Port Talbot could mean those authorities are reluctant to significantly reduce their spending on the arts as the judges examine what the area has to offer. | Swansea is currently bidding to be named UK City of Culture 2017, and its joint bid with Carmarthenshire and Neath Port Talbot could mean those authorities are reluctant to significantly reduce their spending on the arts as the judges examine what the area has to offer. |