5. What discussions has the Minister had with the Minister for Finance about the sustainability of the local government funding formula? OAQ53240

Well, indeed, the finance Minister and I both met with local government at this morning’s finance sub-group meeting to discuss finance matters, the main topic of which was the sustainability of the local government funding formula. So, we're both fresh from that very meeting.

I think there must be an echo in this Chamber—I know that you discussed this fully with my colleague Mark Isherwood earlier. This was a question that I and my colleague Janet Finch-Saunders regularly posed to your predecessor, Alun Davies, when he was in the local government role, and I'm pleased that we've set the ball rolling again today on this important issue. Now, I understand that there is a measure of disagreement here and that the Welsh Government believes that the funding formula in its current form can continue. So, can I just ask you, in a spirt of openness, that you do continue those discussions with the finance Minister and, indeed, local government? And although I know, each year, the WLGA agree to the funding formula in some form or other, I do think there is scope within the formula to tinker with it, if you will, and try and make sure that local authorities do get a slightly better deal. I'm thinking particularly about those authorities in rural areas that cover a large rural area and sometimes feel that they're not getting quite that level of support that would help them deliver services in those large rural areas.

We had a full discussion about the way that the formula works and any issues that anyone in the room had with them, and I invited suggestions from the local government leaders in the room and, indeed, from the wider local government community as to any suggested changes to the formula that might be something that we could all support. So, I'm very open to that. I have to say, nothing has come forward yet that significantly changes the formula. As you know, we put a funding floor in place in order to protect councils that are particularly affected by sudden changes in the way that the distribution works—so, by population change, for example, or by big differences in free-school-meals provision, or whatever it is. But we had a very good discussion this morning, and, as I said in earlier remarks, I'm not aware of what the disagreement is. There certainly wasn't any disagreement in the room this morning.

Can I start by thanking my good friend from across the Chamber, Nick Ramsay, for tabling this very important question? And I'm pleased to hear that the Minister has sat down this morning with the finance Minister to discuss this very important issue, which is raised with me on almost every occasion when I meet with members of local government in north Wales. This, of course, is a vital part of how local councils get their resources to fund the very important local services that, every day, people deserve, and of course we are all suffering at the moment from the UK austerity set by the Tory Government. Now, remembering that Welsh Government does not set the formula, but it is set on expert advice and agreed by local government, would the Minister welcome the initiation of research work by Members of the Assembly from north Wales into the effectiveness and fairness of the current formula?

Yes. As I said, I'm very open to any suggestion to change the current funding formula that can be agreed through the local government group. It's very much something that we agree together with local government. We very much wanted to be something that the whole of local government is able to buy into and that the Welsh Government also buys into. So, I absolutely welcome any suggestions or any research that shows us any different way of doing it.