Alun Cairns: Much of the debate over the local government settlement has been held during the draft stages, and this debate merely is confirmation, although there are some amendments, as the Minister said. The Conservative position is to oppose firmly the settlement proposed by the Welsh Assembly Government. Although there have been some changes, they are almost inconsequential to most local authorities. Our policy is clear in that we think that local government should be funded better, and that the 1 per cent efficiency savings expected of local authorities should be retained by them. In effect, that would allow sufficient funding potentially to freeze council tax levels in the next financial year. However, sadly, as a result of the Assembly Government and its policies, local government is receiving a much-below-inflation increase. Inflation has been running at a considerably high level of late, and even though it has started to fall back, the consumer price index remains at 4.1 per cent. The Minister talks about a 2.7 per cent and 2.9 per cent council tax increase over the last couple of years; he is happy to talk about trends looking forward in terms of the increase that will be received, but this is merely a manipulation of the money that is being presented. He is happy to group years together in order to present the best possible spin. For example, he talked about a settlement of some 8 per cent, and the settlement to local authorities cumulatively may well achieve that figure, but with a year on year increase it is nowhere near that figure when we are down to 2.7 per cent and 2.9 per cent for the last two years, including the coming financial year, and when inflation has been closer to 5 per cent.

The change that derives from the debate on the draft budget and is seen in these figures is that Conwy County Borough Council now falls to the level of Powys, Blaenau Gwent and Ynys Môn local authorities, where the floor cuts in to ensure that their increase is not less than 1.5 per cent. It highlights the fact that some of the most deprived communities in Wales are receiving the lowest increase from the Welsh Assembly Government, and this will be judged upon by voters when it comes to the European elections and other elections, whenever they might be.

Alun Davies: Alun, can you explain to me and others how the £5 billion of public spending cuts outlined by David Cameron will help Welsh local government?

3.10 p.m.

Alun Cairns: The £5 billion-worth of cuts do not fall into the devolved areas, and that means that health and education, which are the largest spenders and take the largest slice of the Welsh Assembly Government’s budget, will be protected and their money will be preserved. Wales will not lose out as a result of these spending cuts. Where Wales will lose out is the huge—[Interruption.] If someone wants to make an intervention, I would happily take one. To speak from a sedentary position merely demonstrates that you do not believe in your own argument. Let us debate this in an adult way. It is difficult to accept that a so-called socialist administration is offering the lowest increase to some of the poorest communities and poorest parts of Wales.

David Lloyd: Thank you for giving way, Alun. Are you satisfied that your strength of feeling on this issue is supported by your Conservative colleagues, who do not appear to be here?

Alun Cairns: If that is the level of debate, I will say that I know that Dai Lloyd is embarrassed to be part of this administration and to be dragged down by the policies that have been pursued by this Labour-dominated administration. If the level of debate is to raise the presence of Conservatives in the Chamber—

David Lloyd rose—

Alun Cairns: No, I think that we have had enough of that level of debate from Dai. If those are the echelons of debate that Dai Lloyd is prepared to reach, then we have heard enough.

What has developed since the debate on the draft budget before Christmas is the Assembly Government’s proposal to change the Essex-Jones agreement. Therefore, not only has the hypothecation of funding to local government increased over recent years, at a time when the Government says that it wants to support local government and give it its freedom, but the proportion of hypothecated funds has increased. At least agreement was reached by the former Minister, Sue Essex, and Sir Harry Jones, the leader of the WLGA at the time, that any new obligation or responsibility placed on local government must be fully funded. That was a clear policy and principle that was accepted by all, and it was brought about because of the poor settlement that local government received at the time. For a Minister now to talk about revising the Essex-Jones agreement clearly demonstrates that council tax increases will be well above inflation in the coming financial year, and, over the longer term, as more and more obligations are placed on local authorities, the council tax increases will be here to stay, and they will continue to be well above inflation as long as this Minister stays in post and this Government stays in power.