Diolch yn fawr, Llywydd. I'd like to continue in the same tone and approach that the Cabinet Secretary for Finance has adopted over the debates this afternoon in rooting our budget for local government in our values, our principles, where we stand and the approach that we wish to take. Presiding Officer, this is a budget that is rooted in a belief in local government. It is rooted in the belief that local government is valued by both this Government and by people across Wales. We want to work alongside local authorities to protect and enhance public services, to value public service workers, and to ensure that the place of local government in our budgets reflects these values and these principles. The finance Secretary, in introducing the Government's budget earlier this afternoon, outlined how austerity has undermined our ability to protect these services, but within this context we will continue to invest in local government and in local services.

Next year, local authorities in Wales will receive over £4.2 billion in general revenue funding. This is an increase of 0.2 per cent compared with the current financial year, and the second increase in the settlement for local government in as many years. Presiding Officer, we believe that this is a realistic settlement that will continue to protect local services from significant cuts against a background of reduced funding. The Welsh Government has protected funding for local government in recent years, and this settlement is no different. As a result, current spending on local services in Wales has increased by over 4 per cent between 2010-11 and 2017-18 in cash terms. In England, it has decreased by 12 per cent, and that is the real example of how this Government seeks to value public service, value public servants and value local government.

The distribution reflects the most up-to-date assessment of relative need, based on a wealth of information about the demographic, physical, economic and social characteristics of every authority in Wales. In preparing the final settlement, I've given careful consideration to the responses I received to the consultation on the provisional settlement, which closed on 21 November. This settlement provides councils with a robust basis for their financial planning for the coming financial year. Compared with the provisional settlement announcement, the final settlement includes an additional £20 million as a result of the Welsh Government's final budget allocations. Also, the final settlement includes a further £7 million to support the increase to the capital limit in charging for residential care to £40,000 commencing in April 2018. In addition, the final settlement provides an additional £1.3 million of funding to local authorities for them to use their discretionary powers to provide targeted relief to support local businesses that would benefit most from additional assistance. 

Within the settlement, we are prioritising funding for essential public services such as education and social care. Whilst there is no ring fencing on any specific element of the settlement, I am prioritising funding for schools, through £62 million in 2018-19 and a further £46 million in 2019-20 within the settlement to provide and to maintain the Welsh Government's contribution and enable authorities to maintain core spending on schools at current levels in both those years. Similarly for social care, I am prioritising funding, through £42 million in the next financial year and a further £31 million in 2019-20 within the settlement, to maintain the Welsh Government's contribution and to enable local authorities to maintain core spending on social care at current levels in both those years. This reflects our recognition of the need to invest and to continue to invest in social care.

As well as the funding I have already highlighted, this settlement provides an additional £6 million to support the delivery of local services to meet homelessness prevention duties, on top of the £6 million built into the settlement in the current financial year. Alongside the settlement, we are providing £600,000 to support local government to stop charging for child burials. This recognises and builds upon the positive steps already taken by many councils in Wales and puts in place a fair and consistent approach across Wales. Finally, over £800,000 of additional funding outside the settlement has been included to ensure that no authority sees a reduction greater than 0.5 per cent compared to the current general revenue funding allocation. Local government has continually asked for dehypothecation of specific grants and, in line with the direction of travel of previous Ministers, I have sought to continue this trend and will be looking to transfer further funding into the settlement in the future.

The settlement reflects over £92 million worth of transfers into the baseline previously paid to local authorities through specific grants. This includes £35 million from the waste element of the single revenue grant, £27 million of funding previously provided via the Welsh independent living grant, £19 million to support the social care workforce grant, £8 million to deliver the looked-after children programme, £3 million for carers' respite care grant, and £391,000 additional funding for social care for prisoners in the secure estate.