Whilst I can understand why the Member has tabled amendment 143, I cannot support it and call on Members to reject it. The amendment proposes setting in legislation a requirement to reimburse costs without any acknowledgement of the benefits, financial or otherwise. It does not draw a distinction between set-up costs and the costs and opportunities arising from a new but enduring way of working. It also implies that councils and the Welsh Government would have to identify those costs directly applicable to this legislation forever and a day, no matter how small or inconsequential they might be, therefore creating a need for a new and bureaucratic system to record and track costs by setting up a specific hypothecated funding mechanism. I do not think that is the Member’s intention, but it would be an inevitable consequence of setting such a provision in the legislation.    

However, let me be clear that we do recognise there will be a need to invest in the implementation of some aspects of this Bill. For example, we've already provided additional funding in recognition of the impacts of electoral reform amounting to some £2.2 million over the last two financial years. We will continue to discuss with local government through the WLGA what further support is needed to implement other changes. 

There is also an important principle here about the funding of local government that we should not lose. The majority of our funding for local government is unhypothecated. Unlike grants, where we can, and often do, require some activities to be prioritised and done in a certain way, funding through the local government settlement is there for councils to make their own decisions about delivering statutory duties and non-statutory services. We already have an agreed arrangement, tried and tested, with local government, which considers all aspects of principal council funding in the round. This includes identifying and considering any significant new ongoing costs faced by principal councils, whether from wage inflation or arising from legislation. The finance sub-group of the partnership council exists to ensure appropriate consideration is given to these matters, and I therefore cannot support this amendment. Diolch, Llywydd.