Part of 1. Questions to the Minister for Finance and Trefnydd – in the Senedd at 2:01 pm on 21 October 2020.
It took months for the quarter 1 funding to come through, and in July, the Welsh Local Government Association's finance sub-group report on COVID-19 income and expenditure survey for quarter 2 and future budget pressures said that the Welsh Government has had funding of at least £280 million in consequentials, and may receive more, because that was for the first and second quarters. However, there is the potential for future budget shortfalls depending on several complex and interlinked factors, a downside scenario quotes this at £475 million. Addressing deficits this large in the current financial year will require discussions across levels of Government.
The WLGA chief executive said today that the current situation made it very difficult for councils to plan financially, so I'm surprised you haven't heard that. Flintshire said managing the budget in a changing and fast-moving climate is proving very challenging, while Gwynedd described its financial situation as again being very challenging. How do you therefore respond to calls from north Wales, but representing the whole of Wales, for assurances that decisions by Welsh Government resulting in income loss and additional expenditure due to COVID continue to be met by Welsh Government, and that council tax collection losses are supported, and for clarity on what options for local authority borrowing may be permissible to meet funding pressures? That was put to me today.