2. Will the Minister make a statement on how the Welsh Government budget for 2020-21 supports the funding of public services in Flintshire? OAQ55032

The budget invests in all parts of Wales to support our public services, including a £20 million boost for the north Wales metro, continued investment in Flintshire for band B of the twenty-first century schools programme, and a range of active travel paths. The local government settlement also provides a 3.7 per cent increase for Flintshire.

Thank you for the answer, Minister. As you know, I've spoken in this Chamber before about the pressures that continued austerity places on local government. Decisions made in Westminster have a huge impact on the ground in Flintshire. Now, many of us are disappointed at the news that the UK Government, post election, have no intention of keeping their promise to end austerity. The impact of austerity can be seen on the very streets of Deeside. Minister, as I have said before, budget lines like the housing support grant are absolutely vital if councils are to mitigate the impact of austerity. This funding allocated by this grant is struggling to keep with the need. Would you look at the possibility of finding additional funds for this grant, or provide councils like Flintshire County Council with additional cash, to help support the most vulnerable in our communities?

I thank Jack Sargeant for his question, and for his support for services for homeless people. He knows that, this year, we've maintained the level of funding in the housing support grant at £126.8 million. And I think that our record in Wales does compare very favourably with that across the border, where Supporting People is concerned. Because the budget there was de-hypothecated, leading to significant cuts in the service, according to the National Audit Office. But, as the Member knows, we're currently going through the scrutiny phase now of the 2020-21 budget, and I am listening carefully. And I know that there have been some messages about Members' priorities, which have been coming through loud and clear. So, I'll certainly seek—when I do lay the final budget, in that final budget debate—to recognise where my priorities would be, should there be additional revenue coming forth from the 11 March budget from the UK Government.

In November 2018, Flintshire County Council launched its #BacktheAsk campaign, in full council, receiving full cross-party support,

'to take the fight down to the Welsh Government in Cardiff to get a fair share of national funds'.

Its leader, who happens to be a member of your party, subsequently said the council is seeking a recognition of how the formula impacts on the council's low-funded position, when compared to the majority of councils in Wales. One of the councils then received the largest cuts in Wales in 2019-20. In October, a letter came to you, and other Ministers, signed by the leader and all party leaders—all group leaders—stating,

'We still contend that as a low-funded council per capita under the local government funding formula we are more exposed than most'.

In the draft budget, you then gave them the third lowest settlement in Wales. Senior councillors in Flintshire have told me in recent weeks that they don't want to openly challenge the funding formula, on the basis that, in order to gain, other councils would have to receive less, and they wouldn't receive external support. However, how do you respond to the letter you've received from council leaders in north Wales, signed by all leaders, of all parties, stating that the benefits of your provisional settlements in the draft budget are not shared sufficiently fairly, and leave most of the councils in the north with a settlement significantly below the net cost of pressures, inflation, and demographic change?

Well, of course, the core revenue funding that we provide to local authorities every year is distributed according to relative need, using a formula that takes into account a wealth of information about the demographic, physical, economic, and social characteristics of those authorities. And as Mark Isherwood has recognised, that funding formula is developed in consultation with local authorities, through the distribution sub-group.

What I will say is that Flintshire's settlement is a reflection of a range of less favourable financial redistributional movements in formula indicators, such as those on low-income support, so those who are not in employment aged 65 and over. And also, nursery and primary pupil numbers are also relatively low. But the authority does see a financially favourable movement on those on income support who are aged 18 to 64. So, these are the kinds of features that deliver the funding settlement that Flintshire has had. And I would say, 3.7 per cent is a very good settlement, after a decade of austerity. And I do find it a bit rich to be having to listen to Conservative Members talking to me about cuts to local authorities, given the fact that we've had 10 years of austerity, and our budget next year is still £300 million lower than it was a decade ago.

So, as the Minister for Housing and Local Government has said on many occasions, and as have I, we are very open to having those discussions with local authorities, and it's for local councillors to, in the first instance, have that discussion. And I don't think that local councillors should feel concerned in any way about discussing their legitimate issues with their peers.