Council leaders have welcomed last week’s announcement that 85% of National Insurance contribution (NIC) costs for the public sector will be funded in Wales — but warned that local authorities are still being left with a shortfall.
The new funding settlement represents an improvement on what councils in Wales had been preparing for, with the level of support higher than originally anticipated.
This uplift has been made possible by the Welsh Government contributing £36m from reserves, topping up the funding provided by the UK Treasury.
While the move has been welcomed, council leaders have stressed that this still leaves a £36m shortfall across all public services in Wales.
Councillor Anthony Hunt, WLGA Finance Spokesperson, said:
“We’re pleased that the Welsh Government has clearly listened to local government’s concerns and responded by stepping in with additional funding. This support will go a long way in easing the pressure on councils and protecting vital local services.
“While a funding gap remains, this announcement marks a positive step, and we’ll continue to work closely with Welsh Government to ensure councils in Wales are fairly supported in the face of rising costs.”