Welsh councils demand reform to grant funding system

 

Welsh councils are pleading for the transport funding system to be reformed, after having to bid to government for cash to carry out such minor schemes as installing individual crossings.

This year’s transport capital grants in the devolved nation included many that were under £10,000 as well as £18,000 for a pelican crossing in Conwy, £15,000 for speed reduction works in a Caerphilly street, £22,000 to upgrade a zebra to a pelican crossing in Blaenau Gwent and £65,000 for a fixed speed camera in Flintshire.

The Government was also criticised for announcing the grants more than two months into the financial year.

The Society of Welsh Treasurers and the Welsh Local Government Association are lobbying to replace specific grants with increases in each authority’s Revenue Support Grant (RSG).

‘As the financial position gets more difficult, there’s a feeling that we could streamline the process,’ said Tim Peppin, the Welsh Local Government Association’s director of regeneration and sustainable development.

Writing submissions, monitoring grants and auditing outcomes involves substantial administration for local authorities and the Government, he added.

‘If it’s for established functions, as opposed to one-offs, it seems better to put that [grant] into the RSG and let the local authority decide,’ he said.

He conceded this would reduce the Government’s ability to control authorities’ spending therefore there was 'a balance to be struck'.

The issue has come to a head with Denbighshire councillors due to discuss the situation this week, after officers revealed the Welsh Government awarded the authority around 10 grants of less than £10,000 last year and 86 specific revenue grants in 2013-14.

Richard Weigh, chief finance officer, said ‘unhypothecating’ grants would ‘most definitely cut bureaucracy and cost’, adding that the late notice of some grants and a lack of multi-year funding were also problematic.

 

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