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WLGA INSISTS CASH RISE IS EXAGGERATED

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The Welsh Assembly has confirmed its financial settlement for councils, but the Welsh Local Government Association ...
The Welsh Assembly has confirmed its financial settlement for councils, but the Welsh Local Government Association insists the rise is overstated.

Local government minister Edwina Hart said councils are to get a grant increase of more than 8%, a rise of

around£300m on last year's settlement (LGC, 22 November 2001).

But association finance director Ian Miller said the figure is nearer 5%, though he welcomed an end to ring-fencing.

He said: 'We welcome the real terms increase in revenue and capital spending, but there are some concerns. The teachers pay threshold is not adequately funded and there are pay increases, inflation and other issues such as employment contributions for pensions for teachers which have to be taken into consideration. It's not quite as rosy as it seems.'

Ms Hart said: 'This clearly demonstrates the Assembly's determination to release substantial new resources.

'I want to make it absolutely clear revenue settlement resources are not earmarked by the Assembly.'

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