LAURA Anne Jones MS, called on the First Minister to urgently address the financial fallout of the Labour Government’s recent budget decisions on Monmouthshire County Council.

MCC warned that increased national insurance contributions, imposed by Westminster, will strip £3.5 million from its budget, severely affecting local services.

Ms Jones received a letter from the council detailing the financial strain caused by the national insurance hike. The impact is set to be even worse as many service providers face rising costs, which are expected to be passed on. Without immediate financial support, Monmouthshire faces the grim choice of either increasing council taxes or cutting vital services.

Ms Jones demanded that any replacement funding be clearly identified as compensation for the lost income, rather than being presented as new or increased investment; emphasising the importance of fair funding for Monmouthshire.

“It is unacceptable that local authorities are being left to pick up the pieces of these budgetary decisions,” Ms Jones added. “Residents should not be forced to pay higher council taxes or suffer reduced services due to these choices.”

MCC Leader, Cllr Mary Ann Brocklesby, said, "We welcome the Welsh Government’s assurance that they will fully fund MCC’s increase in National Insurance Contributions (NIC).

“This, along with the autumn budget, represents an important, positive step towards rebuilding the country’s finances.

“We look forward to future investments in local government as a result of the increase in funding for and from the Welsh Government.

“However, in the short term, this cannot completely redress the severe damage gone by the previous 14 years of austerity and cuts to public services.

“Meanwhile we are doing everything possible to maintain and enhance the local services that our residents and communities value and rely on.

“As is our practice, we will share our own budget plans with our residents for discussion."