Postponement of the Provisional Local Government Revenue and Capital Settlements 2005-06

I have agreed with the Leader of the WLGA, Alex Aldridge, and with the Presiding Officer, Meryl Gravell, to postpone publication of the final local government settlement. This means that the National Assembly for Wales will not now debate the settlement until 12th January at the earliest.

I understand that the WLGA response to the consultation on the provisional settlement will not be finally decided until a meeting of the WLGA’s full council on 26th November.  In all probability the earliest I would see the response is 29th November. I am also concerned to give full consideration to the responses of individual local authorities and other interested parties. I would have limited time to give due consideration if we are to publish the settlement on 30th November.

In relation to the taxbase data provided by authorities, a delay will provide an opportunity to ensure that the taxbase information we use in the settlement is consistent with the information which, under the regulations that are due to come before the Assembly on 23rd November, authorities are required to use in their own budget setting exercise.

I understand the UK Government’s Pre Budget Report is now to be announced to Parliament on 2 December. There is no means by which the local government settlement can be altered once it has been voted through by the Assembly.  Equally, there is no means of knowing whether the Pre Budget Report will result in any financial consequential for the Assembly.  This uncertainty and the wisdom of keeping all options open to the Welsh Assembly Government also point to delaying the settlement.

I continue to recognise the need to provide as much information as possible to assist financial planning. I will consider the potential for publishing the final settlement during December once I have considered the issues mentioned above.