Unitary and Police Authority Budgets 2005-2006

Today I am writing to all unitary and police authorities to consult them on their budget intentions for 2005-2006.

In earlier correspondence and in meetings I have already explained my expectations for the budget requirements of authorities. In the light of what I have said I have been encouraged that for many authorities their budget growth is broadly in line with my expectations. I have written to all authorities again today to set out these expectations in even greater detail.  In order to do so in terms that leave no room for doubt, I am setting them out in the form of draft principles under Section 52B of the Local Government Finance Act 1992. A copy of the draft is attached.


These draft principles define the limits beyond which the Welsh Assembly Government would consider a local authority budget to be excessive.  The powers under the 1992 Act enable me to lay these principles before the Assembly.  Once such principles have been formally made by the Assembly they pave the way for formal steps, if necessary, to designate or nominate authorities which set budgets which break the principles.

Although the legislation doesn’t require me to consult, I am keen to give authorities an opportunity to express their views to ensure we have a common understanding of the basis on which the budget figure for 2004 – 05 and 2005 – 06 are defined. I am sure that authorities will appreciate the clarity I am giving.   In preparing these principles I have relied on an extensive dialogue and exchange of information with local authorities and I am grateful to them.  I have agreed with the WLGA that the consultation period close by 17 February.

If following the consultation period it is necessary to proceed, it would be my intention to seek the formal approval of the draft principles by the  Assembly in plenary session. Assembly Members will have an opportunity to discuss the matter then.  Once unitary authorities have set their own budgets which, by law they have to do by 11th March, I will consider those budgets against the principles.