Part of 2. Questions to the Minister for Housing and Local Government – in the Senedd at 2:43 pm on 3 February 2021.
Thank you for that response. In terms of the gap in the law, the loophole, it doesn't matter about the semantics here, but as you said, it's a matter of an ethical injustice in way, so even if local authorities aren't losing out, it is an issue that needs to be resolved, and we need to close that loophole. Clearly, this is something that the next Government will have to tackle.
I would like to turn now—I hope the sound has improved—to a different issue, which I raised in a recent letter to you, namely the fact that two councils had received a financial settlement that was much lower than the rest. The councils of Ceredigion and Wrexham were only offered 2 per cent and 2.3 per cent, which is well below the average of 3.8 per cent. The leader of Ceredigion council, Ellen ap Gwynn, has warned that this could lead to job losses and cuts in services. This would be entirely unfair, I'm sure you'd agree, on the workers and the council, who have been doing such crucial work in keeping local residents safe during the pandemic.
Now, I understand that your Government uses a formula to allocate funding, so this decision isn't a deliberate decision to underfund them, but in the past, when there have been significant differences within the settlement, the Government has put a funding floor in place, something that the WLGA have called for this year. I know, in the past, Minister, that you've said that you only brought that floor in when some councils identified very negative impacts and that they would get less rather than any increase at all, but the pandemic does bring us into a situation that is unprecedented and the demand on services has been so much the greater. Implementing this now—increasing the contribution to both councils—would only cost some £2.4 million. You've said to me that you would consider everything carefully before announcing the final settlement. So, can you tell us today whether you will implement a funding floor in this case? I hope the sound was better this time.