Following the recent admission by Welsh Assembly Finance Minister, Andrew Davies AM, that government funding in the next few years may be hit by as much as £500 million, local AM Nick is concerned that public services will bear the brunt and council tax payers will end up picking up the bill.

Speaking today Nick said: "As the credit crunch bites the finances of the country, the Welsh Assembly and local government are being stretched like never before.

"With the recent announcement that the Welsh Assembly Government could get £500m less from the UK government, I am deeply concerned that this will further impact on the way local government is financed over the coming years, which could leave the Monmouthshire County Council with the unenviable choice of either raising council tax or cutting services.

"Monmouthshire has suffered in the past from derisory and inexplicably low financial settlements from the Welsh Assembly Government. The way this government behaves is to shove responsibility onto our local authorities and ultimately council tax payers.

"Questions need to be asked. It is clear that we need to take a serious look at the way our local authorities are funded."