The Welsh LGA has warned of “extremely turbulent times ahead” for local services in Wales, after councils were awarded a 3.1 per cent increase in core revenue funding in 2024/25.
Welsh local authorities will receive £5.7 billion from the Welsh Government revenue support grant and non-domestic rates, and no individual council will receive less than a 2 per cent increase.
With continuing inflationary pressures and rising demand in adult social care, children’s services and housing, the WLGA says councils face a £432 million shortfall after council tax rises.
Cllr Andrew Morgan OBE, Leader of the WLGA, said: “We knew this was going to be a challenging settlement, and we recognise the Welsh Government’s efforts in seeking to provide a degree of protection for frontline public services.
“But the outlook remains bleak for local services that are still being seriously affected by ever-rising costs. Even though inflation is slowing, it still means we all get less for our money now than we used to, and this is the same for councils too.
“The UK Government had a chance to address this funding gap in the last Autumn Statement but did not take it.
“No extra money for schools or social care meant that no consequential funding flowed to Wales. Difficult decisions will have to be taken to ensure councils can meet their legal duty to balance the books and set a balanced budget.”
Rebecca Evans, Minister for Finance and Local Government, acknowledged that the overall funding settlement is “not sufficient to meet all pressures”, but said spending plans had been reshaped to “protect the core, frontline public services provided by local authorities like schools and social care”.
She added: “I appreciate the pressures local government is facing and recognise that demand for services, along with the recent very high rates of inflation, mean local government will still need to make difficult decisions on services, efficiencies, and council tax in setting their budgets.”
A six-week consultation on the provisional settlement closes on 31 January 2024, visit www.gov.wales/local-government-revenue-and-capital-settlement-provisional-2024-2025.
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