8. What discussions has the Cabinet Secretary had regarding a needs-based formula for allocating money to councils? OAQ52674

We and local government continue to work in partnership to explore ways to improve the existing needs-based funding formula, to better reflect authorities’ relative need to spend.

Thank you, Cabinet Secretary. Since returning to this place, I've received a number of representations from local authorities in my own area, particularly in my own region and particularly in Powys, who contend that—and this will not be a new point made to you, I'm sure—the current formula creates difficulties for people in rural areas. For example, if you are a family on low wages living in rural Powys, you need two cars in order to be able to access employment at all. Will you continue to keep the formula under review, Cabinet Secretary, and will you give consideration, particularly with the concerns that people have about the potential impact of Brexit on rural Wales and on the rural economy—will you look again at some of those factors that might be indications of wealth in more urban communities, but are simply indications of survival in rural ones? 

The Presiding Officer will be aware that one of my first acts as a Member here back in 2007 was to undertake a review of rural poverty and deprivation in rural communities and the memory of that investigation stays with me today. We understand that poverty in rural Wales can be very different to poverty in urban communities. We understand that very well. The formula does seek to review those issues and does seek to ensure that all authorities receive fair funding that meets the needs that they have. We recognise that the quantum available to us this year and next year is not what we would wish it to be, and the responsibility for that lies not with the formula but with the failed austerity policies pursued by the United Kingdom Conservative Government. We were told by the Prime Minister this morning that austerity is over. My fear is Brexit will mean that, for rural Wales especially, austerity will be deepened and broadened and lengthened, and not ended in the way that the Prime Minister has somewhat naïvely believed.

Thank you, Cabinet Secretary.