The cost of dealing with the equal pay problem in Wales is likely to be four times the previous estimate. Local government minister, Sue Essex, told the National Assembly that councils faced a bill of £250m-£300m, compared with the unofficial estimate a year ago of £80m. But Steve Thomas, Welsh Local Government Association chief executive, told The MJ this week that the liability was ‘in excess of £300m'. The minister has played down the role of capitalisation alone in answering the problem, ‘because that is having a capital sum that you have to pay for'. But Mr Thomas said: ‘Capitalisation is a few factor.' On this, the WLGA had intensively lobbied the Treasury and pressed the Cardiff government. The minister has said: ‘For many authorities, it will be a combination of sources of finance.' And she rejected opposition calls for Cardiff to pay: ‘Ultimately, it is for local authorities to put in place arrangements to deal with the costs.' Mr Thomas said councils might have to use balance budgets or make service cuts.
