The report from a working group established by Welsh Government calls for far greater transparency over the Crown Estate’s finances and a stronger partnership approach to ensure communities across Wales benefit from future investment, especially in offshore wind and supporting infrastructure.

Councils across Wales have consistently supported the devolution of the Crown Estate’s assets so that decisions about Wales’s natural resources are made in Wales and aligned with local economic priorities.

The WLGA said the report provides useful new evidence and a clear pathway for strengthening accountability while the case for devolution is developed further.

The WLGA said it would now consider the Welsh Government’s response to the report in full, but that the four recommendations, including improved financial reporting, stronger scrutiny arrangements and the development of a clear business case, represent a positive step forward in strengthening Wales’s voice in how the Crown Estate’s assets in Wales operate here.

The association added that it will continue to work with the Welsh Government, the UK Government and the Crown Estate to ensure that Wales secures the maximum possible benefit from future renewable energy developments and other investments linked to its natural resources.

Councillor Andrew Morgan OBE, WLGA Leader, said:

“People in Wales deserve to see the full benefit of our natural resources. This report reinforces what councils have been saying for some time – there must be far greater transparency about how the Crown Estate operates in Wales and how the benefits are shared with our communities.  

“Local authorities welcome the jobs, investment and opportunities linked to offshore wind and other developments felt in every part of Wales. While we warmly welcome the stronger focus on partnership and accountability, our long-standing position remains that the Crown Estate’s assets in Wales should be devolved so that decisions can be taken closer to the communities they affect.” 

Spending by the UK Government on education and young people with special education needs and disabilities in England is anticipated to result in as yet unconfirmed Barnett consequential funding for Wales.

Councils warn that without sustained and fair funding, communities will continue to feel the impact through stretched services and less support for preventing issues before they escalate.

One of the most acute pressures highlighted by councils is in education. Around one-third of all council spending in Wales goes on schools, with Additional Learning Needs (ALN) costs rising sharply. ALN spending accounts for more than a quarter of all school budget pressures, with more than 70 per cent of ALN spending going directly to support learners.

Councils say the growing complexity of need, alongside learner transport and workforce costs, is creating unsustainable financial strain.

Councils have reported a £69 million overspend in social care in-year, due to rising demand rising and cases becoming more complex with more than 81,000 people relying on ongoing care and support.

Concerns have also been raised about the future of local economic investment. The UK Shared Prosperity Fund, which replaced EU funding, supported locally delivered projects to create jobs and strengthen communities. Its successor, the Local Growth Fund, comes with a significantly reduced overall allocation. Councils say this could limit support for place-based programmes that help businesses grow and people into work.

Councillor Anthony Hunt, WLGA Spokesperson for Finance, said:

“The Spring Statement presents an opportunity. If additional funding comes to Wales, it must reach the frontline services that people rely on every day, particularly in education and young people with additional learning needs.  
 
“Councils are facing exceptional pressures across the board, but none so great as in social care and education. These are not optional services; they are lifelines for families and vulnerable residents.  
 
“We are offering the next Welsh Government a genuine partnership. The current Welsh Government listened to the concerns of local government in last year’s settlement. My hope is that they do the same here.  
 
“With fair, multi-year funding and a shared focus on prevention, councils can move beyond managing crisis to investing in resilience, growth and better outcomes for people across Wales.” 
 

The new draft settlement now includes an average increase of 4.5% for councils, with a fully funded floor ensuring no authority receives less than a 4% uplift. 

The Welsh Government has confirmed that the updated draft budget includes £112.8m in additional funding for local government, forming part of a wider Welsh Government–Plaid Cymru budget agreement.  

The package also includes extra investment in health and social care, and additional capital funding to be allocated by the next government after the Senedd election. 

Councillor Andrew Morgan OBE, WLGA Labour Group Leader, said: 

“This is a very welcome improvement on the original draft settlement. The additional £112.8m for local government announced as part of the wider budget agreement is particularly welcome and strengthens the position further. 

“I would like to thank the Welsh Labour Government and the opposition parties who have worked together, responding to the case made by the WLGA and local government for increased funding for our essential local services. The uplift to an average 4.5% increase provides a much stronger starting point for councils as we plan for next year. 

“The pressures in social care, homelessness and education remain extremely challenging, but today’s updated figures will make a meaningful difference and give councils greater confidence to protect essential services. 

“We will now work through the detail and continue constructive discussions during the consultation period. This is a positive step forward and will be widely welcomed across Welsh local government.” 

Councillor Mark Pritchard, WLGA Independent Group Leader, said: 

“The improved draft settlement is welcome and shows that Welsh Government has taken on board many of the concerns and issues raised by local authorities. 

“The additional investment announced for health and social care is positive, but the scale of demand in these services continues to outpace the resources available. Therefore, while this is a step in the right direction, we must be clear that this does not solve the severe financial challenges councils face.  

“Ultimately, this remains short of what is needed to place local government on a sustainable footing. We will continue to make the case about the scale of the pressures facing councils during this consultation period.” 

Councillor Gary Pritchard, WLGA Plaid Cymru Group Leader, said: 

“The uplift in the draft settlement will be helpful for councils, particularly those dealing with higher delivery costs in rural and semi-rural areas. It will provide some much-needed additional support as authorities navigate intense financial pressures. 

“The commitment to further capital funding for the next government is also important for those rural authorities, where ageing infrastructure and higher delivery costs place added pressure on budgets. 

“That said, the underlying issues facing local government remain structural, not temporary. Even with a 4% floor, the gap between need and resource continues to widen, particularly for rural areas where the costs of delivering services are higher. 

“This is a positive step which shows the true value of parties working together for the good of communities throughout Wales. The contribution of Plaid Cymru in reaching this agreement has been important in achieving a better deal for councils.” 

Councillor Jake Berriman, WLGA Liberal Democrat Group Leader, said: 

“This updated draft settlement offers councils more certainty as they plan for the year ahead, and that will be welcomed across Wales. The uplift will help authorities maintain essential services, especially those supporting vulnerable residents. 

“The wider investment announced for public services, including social care, will also support councils as they work to meet the needs of their communities. 

“Every community faces different pressures, and this improved position gives councils a better foundation to respond to those local needs. It is a constructive development during a very challenging period for public services. 

“We will continue to work positively with Welsh Government during the consultation to ensure councils can make informed decisions that protect services and support communities.” 

“Today’s Budget shows a welcome recognition of the importance of fairness and strong public services. Ending the two-child benefit cap is a significant step forward that will help thousands of families and tackle child poverty. Councils will also welcome the extra £500 million for public services, alongside the £5 billion already announced. 

“The new fiscal flexibilities for Wales are an important development, giving the Welsh Government greater capacity to plan and invest sustainably which will benefit hard-hit local services.  

“Whilst the provisional local government settlement, announced by the Welsh Government this week, provides a degree of stability for council budgets it is still nowhere near enough to addressing the £560m gap faced by local services. 

“We look forward to working closely with Welsh Government to ensure this funding enhances the provisional settlement and supports the vital services our communities rely on.” 

Welsh Government has confirmed a £6.4bn settlement for next year, giving councils an average increase of 2.7%. A fully funded funding floor willensure no authority receives less than a 2.3% increase.  

In addition to the core settlement, Welsh Government has also announced over £1.3bn in revenue grants and more than £1.08bn in capital investment for local government. 

Councillor Andrew Morgan OBE, WLGA Labour Group Leader, said: 

“While we now need to go through the figures in detail, this draft settlement offers a degree of stability at a time when local services are under sustained pressure. The average increase shows that Welsh Government recognises the strain councils are facing. 

“But stability doesn’t remove the pressures themselves. Social care, homelessness, education and workforce costs continue to rise faster than resources can keep up. Councils will still need to make tough choices, and that remains a concern. 

“We will continue to work constructively with Welsh Government over the coming weeks on budget talks, as we have been clear that additional funding to increase the final settlement will be required to help protect and maintain services. Our shared goal is to maintain the essential services people rely on every day, and to do so in a way that is fair and sustainable in the long term.” 

Councillor Mark Pritchard, WLGA Independent Group Leader, said: 

“I urge Welsh Government to look again at the reality facing councils and to increase the final settlement. Without additional support, the strain on councils to deliver essential services to the public will become untenable. The pressures on council workforces will only get worse and redundancies will be inevitable.” 

Councillor Gary Pritchard, WLGA Plaid Cymru Group Leader, said: 

“Local government has been warning for some time that the pressure on core services is now structural, not temporary. This increase simply doesn’t keep pace with the underlying forces driving demand. 

“Many councils are already operating at the limits of what is safe or sustainable. Even with a funding floor, the gap between need and resource continues to widen, and that poses real risks for the resilience of services, especially in rural areas. The funding formula really needs to be reformed. 

“We need to see a final settlement that genuinely reflects the pressures councils face, alongside clarity on how wider cost increases will be supported. Without that, local authorities across Wales will remain on very uncertain ground.” 

Councillor Jake Berriman, WLGA Liberal Democrat Group Leader, said: 

“Councils are working hard to protect services, but demand is rising far faster than resources, particularly in social care and services for vulnerable residents. This settlement will still leave many authorities struggling to keep pace with that demand. 

“It’s also important to recognise that every community faces different challenges. Rural and semi-rural areas deal with higher delivery costs and geographic pressures that a flat percentage uplift simply doesn’t reflect. 

“I look forward to continuing discussions with Welsh Government during the consultation period. Communities need a settlement that acknowledges the real pressures on the ground and gives councils a fair chance to plan ahead.” 

In a letter to the Chancellor and Chief Secretary ahead of the review, the WLGA’s political group leaders and Finance Spokesperson urged the UK Government to recognise the central role of local services in delivering growth — from schools and social care to business support and transport — and to provide the funding and flexibility needed to secure their future.

While the UK Government’s announcements included significant investment in English regional transport, Welsh local government leaders are calling for fair investment in Wales’ rail infrastructure and full Barnett consequentials from major capital projects. Local council spending on roads and bus services has declined in real terms for over a decade, restricting people’s access to work, education, and services.

Councils have also welcomed progress on simplifying and integrating funding streams across the UK and continue to back greater fiscal flexibility for the Welsh Government, particularly around borrowing and reserves. Leaders argue that multi-year funding and fewer competitive funding pots are vital to enable long-term investment planning and to maintain essential local services. 

They have also welcomed confirmation that funding levels for interventions including community cohesion, regeneration and improving the public realm are expected to remain the same in cash terms as under the Shared Prosperity Fund in 2025/26, although noting that, despite pre-Brexit commitments, these are significantly lower than received under previous EU programmes. Council Leaders will now need to work through the detail with UK Government and Welsh Government, and are keen to engage with both governments as soon as possible.

The UK Government also announced £118 million of funding will be provided over three years to support coal tip safety in Wales — a commitment that has been welcomed by councils as an important step in addressing this long-standing legacy.

Despite the government’s infrastructure investment plans, WLGA warns that capital spending alone cannot substitute for the core revenue funding that councils rely on to run everyday services.

Councillor Anthony Hunt, WLGA Finance Spokesperson, said:

“It’s good to see this Spending Review include real investment in things that matter to people — like rail infrastructure, which helps connect communities and create new opportunities. With the right support in place, councils in Wales can do even more to deliver the services people rely on and help drive local growth.

“We also welcome the move towards longer-term and more flexible funding. That gives councils the certainty we need to plan ahead and make the most of every pound.”

“We welcome the signs of a more collaborative approach and the recognition of the importance of public services. Last year’s UK and Welsh Government budgets made a real difference for local services, from schools to social care and environmental services. We want to continue that positive direction by working in partnership with both governments to turn shared priorities into tangible outcomes for people across Wales.”

Ends –

Councillor Andrew Morgan OBE, WLGA Leader, said: 
“Whilst we will take time to consider the details, I warmly welcome Welsh Government’s commitment to supporting local government. Next year’s settlement is over £1bn higher than it would have been under the previous UK Government, which is proof of a decisive change in direction which will help to support public services and communities alike.  

“Nevertheless, over a decade of savage cuts and lack of investment in the public sector cannot be undone overnight in one settlement. Local government is wholeheartedly committed to continue to work in close partnership with Welsh and UK governments alike to secure essential local services for the future so that they are still there to support those who need them. I thank the Cabinet Secretary for Housing and Local Government for her close engagement with us and will look forward to continuing our constructive dialogue during the consultation period.” 

Councillor Mark Pritchard, WLGA Independent Group Leader, said: 
“Whilst we have welcomed engagement with Welsh Government, this is a disappointing settlement which does not address the £560m gap in council funding for 2025-26. Local authorities have a statutory duty to present balanced budgets. To achieve this, they could now be forced into a ‘Sophie’s choice’ situation to meet the shortfall – either to look again at Council Tax levels to raise revenue, or to consider cuts to everyday services to lower expenditure. This would be in addition to the impossible decisions that councils are already taking due to the scale of the funding challenges and a chronic lack of investment in the public sector. 

“It is clear that the position is unsustainable. I urge the Welsh Government to reflect on the settlement and explore all avenues available to them to invest in our essential local services. It is only with long-term, sustainable funding that councils can support residents, communities, and businesses, and help to deliver national ambitions.” 

Councillor Darren Price, WLGA Plaid Cymru Group Leader, said: 
 “Local government has been clear of the perilous financial outlook for local services. The average 4.3% increase announced for next year by Welsh Government clearly falls short of meeting the 7% pressure on council budgets. 

“Unless the Welsh Government increases the funding being made available to local councils in the final budget, Councils across Wales will have to make further cuts to services and significant increases in Council tax in order to balance the books. 

“This settlement could very well be a case of the emperor’s new clothes, given that we are still awaiting clarity in relation to funding for employer National Insurance contributions. The increase represents a £109m pressure in direct costs, with £44m pressure for social care commissioning. We desperately need confirmation of that funding to ensure that we have confidence in planning our own budgets. 

“The Welsh Government needs to respond fully to the spending pressures facing local authorities. This draft budget does not do that. There needs to be clarity regarding NI support, and discussions also need to be held to secure additional support for authorities falling at the lower end of the range in the settlement.” 

Councillor James Gibson-Watt, WLGA Liberal Democrat Group, said: 
“We know that the public purse is threadbare with all levels of governments having to face tough decisions. However, this settlement will be a difficult pill for many authorities to swallow.  The demand on services such as social care, education, and housing are ever-increasing. Without the funding necessary to address those demands and rising costs, the ability of our essential local services to fulfil statutory duties, and support residents’ needs will be severely impeded.  

“There is also significant variation in the levels of increase across the 22 authorities, ranging between 5.6% and 2.8%. Councils receiving less-than-average increases will feel particularly exposed to the severe financial headwinds facing local services. That is why we need to see a funding floor introduced to help these authorities. I look forward to making that case to the Cabinet Secretary and her government colleagues during the consultation period.” 

Ahead of the announcement, Councillor Anthony Hunt, WLGA’s Finance Spokesperson said:

“Communities across Wales have recently been significantly hit by the devastation of storms Bert and Darragh. All our thoughts are with the many residents and businesses who have been impacted.

“We have seen council teams, alongside emergency workers, going above and beyond to respond to the ferocious storms. From dealing with the immediate damage and dangers posed by the storms, helping with evacuations, and setting up overnight shelters, we have seen the true value of our councils at close quarters.

“Every day, councils are at the heart of our communities. They deliver essential local services that make a real difference to people’s lives—whether it’s supporting vulnerable children and older adults, providing quality education, or tackling homelessness. But next year alone, they face a budget gap of £560m due to rising costs, pay pressures, and spiralling demand for services. If left unaddressed, this shortfall would be the equivalent of a 26% rise in Council Tax.

“Through the WLGA, councils have worked closely and constructively with Welsh Government to make the case for funding and to secure sustainable solutions.

“We know the pressures on public finances are severe, but with the right financial support which addresses the scale of the pressures, councils can support residents, communities and businesses, help to deliver national ambitions, and continue to provide essential services which enhance lives every day.”

Ends –

Cllr Andrew Morgan OBE, Labour Group Leader:

"We welcome today’s announcement on reforming the council tax system which has needed an update for some time. This reform should help to ensure that it is fairer and more sustainable. It’s good to see that this decision comes after extensive consultation as it needs to reflect both the voices of councils and the people of Wales. Any changes that are made must prioritise the wellbeing of our communities and safeguard essential local services."

Cllr Mark Pritchard, Independent Group Leader:

“The current financial landscape, both for councils and citizens is decidedly bleak and so any decisions on the taxes that individuals and families pay must be arrived at through meaningful collaboration and must be transparent. It is right that taxpayers are provided regular opportunity to engage with the revaluation process and I’m glad to see that this Bill allows for that. In my view, it would have been better for this reform to occur earlier than the suggested timeline of 2028, however I acknowledge the Government's must listen to the prevailing consensus that are reflected in all meaningful consultations.”

Cllr Llinos Medi, Plaid Group Leader:

"The announcement of a timeline for council tax reform signifies a significant step forward in addressing the evolving needs of our communities. Committing to regular revaluations and implementing improvements by the end of the current Senedd term is a key part of our Cooperation Agreement with the Welsh Government and demonstrates our dedication to creating a responsive taxation system.”

Cllr Andrew Parkhurst, Liberal Democrat Group Leader:

“All local authorities are in agreement that a fairer council tax is needed. This reform is a great example of Welsh Government and local government working together for Welsh communities, as we have seen in the numerous working groups and partnership forums that helped to shape this change.”

Ends –

Echoing similar calls by the Welsh Government, the WLGA maintains that the Chancellor's primary focus should be on prioritising investments in essential public services that are relied upon by all of us. 

Cllr Anthony Hunt, WLGA Finance Spokesperson said: 

“We are deeply concerned about the implications of the Spring Budget for communities across Wales. 

“The Chancellor talks about wasteful spending, but the reality is councils are on their knees thanks to his Government, with discretionary spending cut by up to 40% after adjusting for inflation. The local public services councils provide are experiencing unprecedented financial pressures and councils are considering all potential avenues to balance budgets. While they may manage in the short term, there is serious concern regarding the survival of vital local services. Local authorities are expected to deliver more with less funding, so the strain on councils cannot be overstated. 

“Lack of investment in local government will only produce poorer outcomes for communities and will impact on councils’ ability to fund schools and social care, build social housing and invest in the transition to net zero. 

“Thanks to this Budget, Welsh communities will be experiencing rises in Council Tax but can expect to see less for their money. This could have a devastating effect on individuals, families, and communities throughout Wales as this adds to pressures already felt due to the cost-of-living crisis and high inflation rates. The services that are the basis of the fabric of society are straining. 

“The NHS and social care need to be funded on an equal basis as they are both part of the same system and have similar pressures. Despite additional funds announced for NHS, social care remains severely underfunded and overlooked, exacerbating existing pressures on local authorities as well as increasing the burden on the health service.” 

Last month, the UK Government announced it would be increasing its local government settlement by £600m in England, largely to respond to pressures in social care, resulting in a funding consequential allocation of around £25m for Wales.

This is designated to support the social care workforce, schools, and assist councils in addressing pressures within their local communities.

Councillor Andrew Morgan OBE, WLGA Leader said:

“We welcome today’s announcement of an extra £25m to local authorities by the Welsh Government. We’re grateful to the Minister for listening to the case made by the WLGA and local authorities to support essential hard-pressed local services including supporting our most vulnerable residents through providing social care services.

“But the scale of the pressures means that local government is still facing a £432m gap in funding, which means extremely difficult decisions will still need to be taken including raising Council Tax rates and around service provision.

Councillor Anthony Hunt, WLGA Spokesperson for Finance said:

“I’m pleased to hear the Welsh Government announcement today of additional funding for councils to support vital services such as social care, workforce and schools. The WLGA will continue its dialogue with the Welsh Government, and we will look to the UK Government’s Spring Budget for sustainable support to further help to ease the financial pressures faced by essential local services.”

Councillor Llinos Medi, WLGA Plaid Cymru Group Leader said:

“I’m grateful to the Minister for her constructive engagement with local government. Whilst any funding is welcomed, it is clear that this allocation won’t touch the sides of the gaping black holes in our local services’ budgets. Councils are required by law to agree balanced budgets. Set against the backdrop of rocketing inflation, soaring costs and spiralling demand on services, this is fast becoming an impossible task.

“It is disappointing to see that no funding will be provided to cover the teachers’ pay award. This means that local government will be expected to cover the cost of Welsh Government policy from councils’ own dwindling resources.”

Councillor Mark Pritchard, WLGA Independent Group Leader said:

“Since the onset of austerity, councils have lost over £1bn from their budgets. That is £1bn lost from essential everyday services such as social care, schools, economic development, and environmental services to name but a few. The funding announced today will do very little to meet the mammoth funding gaps in our budgets.

“It is clear that a long-term, sustainable funding commitment is urgently needed from both Welsh and UK Governments to seek to protect vital council-run services which support and enhance so many people’s lives in our communities.”

“This announcement today of an additional £600m funding for English councils is proof that the local government finance crisis cannot be ignored any longer. We welcome the fact that most of this funding will be targeted at delivering essential social care services to the most vulnerable.”

“It is vital now that the consequential funding allocation arising as a result of today’s announcement is passported in full to Welsh councils to help our hard-hit social care services and to fund our schools.”

ENDS -

“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.

“We have welcomed a close and constructive relationship with the Minister and her colleagues. We will look forward to work closely with her and Welsh Government to navigate extremely turbulent times for our essential local services and to manage potential implications for our communities.”

Councillor Llinos Medi, WLGA Plaid Cymru Group Leader:

“Rocketing demand in adult social care, children’s services, and housing, clearly shows that local services are needed more than ever amidst a Cost-of-Living crisis which is negatively affecting communities. However, whilst we appreciate the difficult circumstances for the Welsh Government, this settlement will do little to ease the pressure on services. I’m disappointed to see that no extra money has been allocated to cover the increase in teachers’ pay, which means that councils will be expected to meet the cost of a Welsh Government spending commitment.”

“Since the onset of austerity, over £1bn has been lost from Welsh local government budgets. Councils have worked hard to find efficiencies and reduce costs, but the easy savings have long gone. Local government cannot continue to be expected to make significant budget cuts without seriously impacting the viability of our services.”

Councillor Mark Pritchard, WLGA Independent Group Leader said:

“For a long time, councils have warned of the enormous pressures that they face after so many years of reduced funding. Unfortunately, today’s settlement does not provide enough funding to meet the severe cost and demand pressures which present serious challenges next year for setting balanced budgets, as is required by law. Whilst on the surface there appears to be a 3.1% boost in core funding, significant cuts to grants - with no extra money to cover the teachers’ pay increase - means that councils will receive far less than the suggested increase.

“Dipping into ‘rainy day’ council reserves is not a solution to plug ever growing gaps which will reappear year after year. The only answer to meeting soaring costs and rocketing demand on services is to fully recognise and meet the funding pressures for local government.”

Councillor James Gibson-Watt, WLGA Deputy Presiding Officer (Liberal Democrat) said:

“Residents, businesses, and communities in all parts of Wales depend on lifeline services delivered by our councils. From social care to economic development, housing to schools, these are cornerstone services which play a key role in all our daily lives. But the impact of over 10% cost inflation, the consequent need to increase staff pay to meet the cost-of-living crisis and a huge increase in demand for social care, have combined to create a perfect storm for council finances.

“In recent times, councils have played an integral role in delivering the ambitions of the UK and Welsh governments. This will become ever harder to achieve if more funding is not forthcoming.”

Councillor Anthony Hunt, WLGA Finance Spokesperson said:

While core funding has been maintained, other grant funding has fallen in cash terms.  Over the consultation period, we will work with the Welsh Government on this issue and other issues related to teachers’ pay and pensions, and charges for social care.

“Councils will be facing an estimated funding shortfall of £432m even after council tax rises and we will collectively face some very difficult decisions. As well as an ongoing dialogue with Welsh Government we will have to engage our communities on the difficult choices that lie ahead.”

ENDS - 

NOTES FOR EDITORS

1. The draft settlement for local government was published today by the Welsh Government. A press release by the Minister can be read here.
2. Report further outlining the pressures faced by local government, and the scale of the financial position.

“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.

“We have welcomed a close and constructive relationship with the Minister and her colleagues. We will look forward to work closely with her and Welsh Government to navigate extremely turbulent times for our essential local services and to manage potential implications for our communities.”

Councillor Llinos Medi, WLGA Plaid Cymru Group Leader:

“Rocketing demand in adult social care, children’s services, and housing, clearly shows that local services are needed more than ever amidst a Cost-of-Living crisis which is negatively affecting communities. However, whilst we appreciate the difficult circumstances for the Welsh Government, this settlement will do little to ease the pressure on services. I’m disappointed to see that no extra money has been allocated to cover the increase in teachers’ pay, which means that councils will be expected to meet the cost of a Welsh Government spending commitment.”

“Since the onset of austerity, over £1bn has been lost from Welsh local government budgets. Councils have worked hard to find efficiencies and reduce costs, but the easy savings have long gone. Local government cannot continue to be expected to make significant budget cuts without seriously impacting the viability of our services.”

Councillor Mark Pritchard, WLGA Independent Group Leader said:

“For a long time, councils have warned of the enormous pressures that they face after so many years of reduced funding. Unfortunately, today’s settlement does not provide enough funding to meet the severe cost and demand pressures which present serious challenges next year for setting balanced budgets, as is required by law. Whilst on the surface there appears to be a 3.1% boost in core funding, significant cuts to grants - with no extra money to cover the teachers’ pay increase - means that councils will receive far less than the suggested increase.

“Dipping into ‘rainy day’ council reserves is not a solution to plug ever growing gaps which will reappear year after year. The only answer to meeting soaring costs and rocketing demand on services is to fully recognise and meet the funding pressures for local government.”

Councillor James Gibson-Watt, WLGA Deputy Presiding Officer (Liberal Democrat) said:

“Residents, businesses, and communities in all parts of Wales depend on lifeline services delivered by our councils. From social care to economic development, housing to schools, these are cornerstone services which play a key role in all our daily lives. But the impact of over 10% cost inflation, the consequent need to increase staff pay to meet the cost-of-living crisis and a huge increase in demand for social care, have combined to create a perfect storm for council finances.

“In recent times, councils have played an integral role in delivering the ambitions of the UK and Welsh governments. This will become ever harder to achieve if more funding is not forthcoming.”

Councillor Anthony Hunt, WLGA Finance Spokesperson said:

While core funding has been maintained, other grant funding has fallen in cash terms.  Over the consultation period, we will work with the Welsh Government on this issue and other issues related to teachers’ pay and pensions, and charges for social care.

“Councils will be facing an estimated funding shortfall of £432m even after council tax rises and we will collectively face some very difficult decisions. As well as an ongoing dialogue with Welsh Government we will have to engage our communities on the difficult choices that lie ahead.”

ENDS - 

NOTES FOR EDITORS

• The draft settlement for local government was published today by the Welsh Government. A press release by the Minister can be read here.
• Report further outlining the pressures faced by local government, and the scale of the financial position, click here 

The WLGA expressed disappointment at the Chancellor’s Autumn Statement which offered very little in the way of support for local authorities or to address the budget black hole faced by Councils.

The seminar aimed to address the formidable budget challenges faced by local councils, as highlighted by the WLGA's previous characterization of last year's pressures as 'potentially catastrophic.' With collective pressures intensifying, the WLGA recognises the upcoming fiscal year of 2024-2025 as equally challenging.

Cllr Andrew Morgan OBE, Leader of the WLGA said:

“This week’s announcement by the Chancellor was a severe blow for Councils in Wales. The Autumn Statement failed to address the £411m budget black hole faced by Councils next year.

“Thursday’s seminar provided a platform for the exchange of ideas and the discussion of common issues, fostering collaboration to support councils in effectively balancing budgets and addressing exceptional pressures. An independent financial forecast was had from the Wales Fiscal Analysis team, outlining in stark terms the gloomy outlook for public services. We also heard from a Commissioner’s first-hand experience and his learning from being in an authority encountering an extremely difficult position.

“The WLGA continues to call for enhanced support for local services. The need to secure the future of essential services is critical.

“The WLGA remains committed to facilitating dialogue and collaboration among key stakeholders, reinforcing its dedication to supporting local councils in overcoming financial challenges and delivering essential services to communities across Wales.”

-Ends –

As was called for by the WLGA, the Local Housing Allowance (LHA) will be restored to the 30th percentile. Also welcomed is the reduction in National Insurance and the uplift in the Real Living Wage. However, councils in Wales will still have to make extremely difficult decisions in relation to service provision due to the funding crisis which is squeezing budgets like never before.

Cllr Andrew Morgan OBE, Leader of the WLGA said:

“We welcome the cut in National Insurance and the uplift in the Real Living Wage announced by the Chancellor today. We’re also grateful to the UK Government for heeding our call for restoring the LHA allowance to the 30th percentile. However, this disappointing Autumn Statement had very little in the way of support for Welsh councils, or to address the £411m budget black hole faced by councils next year alone. Left unfunded, services could be decimated. In such a situation, we would have major concerns for the delivery of essential services and for our brilliant workforce across Wales that carry out vital roles in our communities.

“Local services are on their knees due to rocketing inflation and costs, and soaring demand. Amidst an ongoing cost of living crisis, worsened by rising utility costs, our hard-hit communities need their local services – such as social care, schools, and housing – more than ever before. Support is needed urgently to halt the potential devastating effects for lives and livelihoods.”

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“WLGA welcomes the announcement of £111m coming into Wales for seven Levelling-up projects. The extension of the timescale for completion of projects to March 2026 is also a positive step, given the time needed to deliver capital projects. Overall, Wales has benefited to the tune of £440m over the three rounds of LUF, supporting 28 projects. I congratulate all those councils that have had successful bids, helping Wales to ‘punch above our weight’ in the share of funding awarded. However, while this is welcomed, moving forward, overall funding for levellingup has to match the previous levels of EU funding and we must ensure that Wales does not lose out.”

Cllr Rob Stewart, WLGA Economy Spokesperson said:

“It is always good to hear of projects receiving funding that support wider regional development efforts in Wales. I am particularly pleased to see three projects in the Swansea Bay City Region area being funded in this round. However, it is disappointing that after three rounds there are still four council areas that have not received any LUF funding. Given that 18 areas have benefited from LUF, the concept or goal of ‘levelling up’ has never been made particularly clear. If it was for Wales to catch up with the rest of the UK, all councils have areas within them that are in need of support. We hope to see advance engagement with UK Government, working with Welsh Government over future plans for LUF or any successor.

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Council services are facing extraordinary pressures due to factors including soaring demand, more complex needs, and rising inflation and costs.

Cllr Andrew Morgan OBE, Leader of the WLGA said:

“Local services are facing a funding gap of £411m which is double the amount that is currently spent on libraries, recreation, and parks. Left unfunded, services would be decimated and we would lose 10% of our workforce which would mean thousands of job losses across Wales of staff that carry out vital roles in our communities.

“It is critical that the government should address the funding crisis in public services and fully fund pay and pensions contributions for teachers to avoid cuts to schools. There should be additional funding for fair pay for social workers and for the soaring demands and costs in social care. Additional resources should be provided to address the cost-of-living crisis faced by our most vulnerable residents and housing support made more generous.

“Whilst we are grateful to the Welsh Government for their support for local government this year, a change of direction is urgently needed by the UK Government to ensure that Welsh public services receive adequate support. Amidst an ongoing cost-of-living crisis, our residents need their local services more than ever, Our plea to the Chancellor is simple: help councils to help communities.”

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As part of safety measures following the Tylorstown landslide in February 2020, data surrounding the location and categorisation of disused coal tips can now be viewed on maps.

Councillor Andrew Morgan OBE, WLGA Leader said:

“The publication of the maps should help to give people all over Wales the clarity and transparency that they need as to the location and any associated risks presented by disused coal tips. Our industrial heritage can be seen in vast parts of the Welsh landscape, and councils have been working closely with Welsh Government, Natural Resources Wales and the UK Government, as part of the Coal Tip Safety Taskforce, to identify the disused sites.

We are extremely grateful for the £44.4 million which has been made provided until the end of 2024-25 for councils and partners to undertake maintenance works of old tips. We would urge the Minister to continue discussions with the UK Government for a longer-term funding solution which will ensure ongoing remedial works, further increase community resilience, and help to tackle the impacts of climate change on coal tip sites in Wales.”

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Accreditation enables enforcement agencies to make an active public commitment to accountability and seeking to meeting higher standards.

Wales is the first of the UK nations to make such a commitment.

Councillor Anthony Hunt, WLGA Spokesperson for Finance and Resources said:

“Collection of local taxes is vital for council funding and by only using accredited agencies it reinforces the council’s role as a considerate and responsible creditor. If you find yourself in difficulty with your council tax, we urge you to contact your local council in the first instance as they can help and offer signposting to other advice providers if needed.”

Catherine Brown, chair of the Enforcement Conduct Board said:

‘’The ECB is delighted that Wales has made such an important commitment to only using accredited enforcement firms for council tax collection. By making this commitment, the WLGA is sending a vital message to the enforcement industry about the value of accountability and to meeting high standards.

“The ECB encourages all creditors who use enforcement firms to make use of our accreditation scheme and to follow Wales’s powerful example.”

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