Labour’s 26-year legacy: Higher taxes, fewer services, and broken promises

Laura Anne Jones MS

Local authorities provide essential services to people across Wales, whether it is leisure centres or refuse collection, people count on these services and when council tax increases year on year in Wales, whose services continue to be reduced, it is understandable that people feel frustrated.

Following the General Election in May, we were promised a Labour Government at either end of the M4, two governments working for the betterment of the UK and, in particular, Wales.

Instead, what we have received is broken promise after broken promise: an economy grinding to a halt, businesses struggling under the weight of the National Insurance increase, winter fuel allowances snatched away from pensioners, and less money in people’s pockets.

Amid this financial turmoil, the last thing the people of Wales need is yet another increase in council tax.

Brunt

Labour has been in power in Wales for 26 years, they need to take responsibility for their frivolous spending over the past two decades which has contributed significantly to the financial difficulties now facing our local authorities.

Councils go above and beyond in delivering the vital public services our local communities rely on. Yet, in Wales, they have borne the brunt of this underfunding.

Despite being tasked with providing essential public services, local authorities have struggled under Labour’s inadequate Local Government Funding Formula. Councils across Wales sit on over £2 billion in usable reserves, while some warn of bankruptcy and their inability to deliver basic services. Something doesn’t add up.

Year after year, the people of Wales are hit with Council Tax rises, with many having seen their bill double since 2010, yet Councils are hoarding billions of pounds in usable reserves.

Labour councils across Wales have resorted to raising council taxes year after year, further burdening hardworking families during a cost-of-living crisis. There have been stark warnings of more incoming.

Reserves

This year, residents are facing an average Council Tax rise of 7.36%. These hikes are unjustifiable when councils are hoarding billions in reserves. This Labour Government are allowing councils to sit on mounds of cash in reserves, yet increase council tax for hard working people. This is not fair.

Meanwhile councils are making cuts that can be felt across many services that people rely on and take for granted, with the impending closure of leisure centres and sporting facilities across Wales is a devastating blow to communities already struggling under financial pressures.

These spaces are more than just buildings—they are lifelines for families, young people, and the elderly, offering affordable ways to stay active and healthy.

Yet, due to Labour’s chronic underfunding and a broken Local Government Funding Formula, councils are being forced to shut these vital facilities. The result is fewer opportunities for physical activity, declining community well being, and yet another example of the Welsh Labour Government’s failure to protect the services that matter most.

Instead of addressing systemic issues, Labour continue to pass the buck. Yet, councils are left to deal with the fallout from Labour diktats, such as the poorly funded rollout of free school meals. The lack of funding for the programme is a prime example of this, forcing local authorities to pick up the bill to ensure our children receive a nutritious school meal.

Under Labour’s watch, local councils in Wales are being pushed to breaking point. Families are feeling the strain as council tax has soared by over 200% over the past two decades, adding around £1,400 to household bills.

Yet, despite these increases, education services are being slashed, leaving parents worried about their children’s futures.

Broken

Behind the scenes, councils are struggling with debts totalling more than £1 billion in mid and north Wales alone. Meanwhile, other local authorities are sitting on vast reserves of cash—money that could be used to fix potholes, keep libraries open, or fund support for vulnerable residents.

Labour’s broken funding formula is forcing councils into impossible decisions: cut vital services or raise council tax even further.

In order to address these issues, the Welsh Conservatives raised a debate in the Senedd this week, where we have called for the Welsh Government to review their outdated Local Government Funding Formula and ensure before any councils force hardworking residents to fork out for inflated council tax increases, the councils put their hands in their own pockets first and spend their usable reserves.

Additionally, we want to see an referendums for any Council proposing a Council Tax rise above 5%.

We have also called for reducing bureaucracy in Welsh local government, promoting cross-council collaboration, resource sharing and increased digitalisation to improve efficiency and cut costs.

Labour must foster a business-like culture, ensuring taxpayer money is used effectively by cutting waste and avoiding vanity projects.

Hardworking families deserve better. They shouldn’t have to choose between paying higher taxes or losing the services they rely on every day. It’s time for Labour to fix the funding formula, stop squeezing councils and ensure every council and every community, gets its fair share.

After 26 years of Labour mismanagement, Wales is broken, only the Welsh Conservatives can fix Wales.

Laura Anne Jones MS, is the Welsh Conservative Shadow Cabinet Secretary for Local Government and Housing and is the Member of the Senedd for South Wales East.