Minister, firstly, I'd like to join you in commending the incredible work that our councils have done during the pandemic; the way that they've reacted and responded to the pandemic in all forms and the floods has been exceptional.

The local government settlement is a missed opportunity. Local councils in Wales will receive a smaller increase in funding compared to the previous financial year. This is in spite of the challenges facing councils as a result of the COVID-19 pandemic. The Minister claims this is the best possible settlement, but this is clearly not the case. It's disappointing that, despite receiving substantial additional funding from the UK Government, the Welsh Government has not provided local government with an ambitious long-term funding settlement to help our communities to build back better. Yet councils have repeatedly warned that they will face significant financial pressures over the next few years, and the lack of financial certainty from this Welsh Government could place vital local services at risk in the future.

I welcome the increase in funding for councils and particularly that rural councils will be receiving a larger share of the funding. That is welcome, as is extending the business rate relief, finally following the rest of the UK, but the settlement is still biased towards Labour-run councils in south Wales. Of the five councils with the highest increase in their settlement, all are located in south Wales; four of the five councils are all Labour-led. Councils in north Wales have generally received a lower increase compared to elsewhere, with only Flintshire receiving an increase in funding close to the Welsh average increase. Welsh Conservative-run councils are once again receiving a below-average increase in their settlement, receiving the second-lowest average increase in the 2021-22 settlement, which comes on top of the lowest average increase last time. It is disappointing that calls by local authorities and the WLGA to introduce a funding floor, as you talked about before, to ensure that all councils receive a fair settlement have been ignored by you, Minister. Furthermore, funding allocations made through the local authority hardship fund have exacerbated the existing regional funding inequalities.

We welcome the support provided to councils during the pandemic through the local hardship fund. However, the funding is primarily aimed at relieving pressures during this financial year, rather than providing the long-term sustainable funding the councils need. It is also true that councils in south Wales have received approximately 63 per cent of the funding allocated through the hardship fund so far, while councils in north Wales have received just 19 per cent. As we begin to recover from the impact of the COVID-19 pandemic, it is important to recognise the financial and economic costs of the pandemic on families across Wales by helping them to keep more of their hard-earned money to support themselves and their families. That is why we are calling for the Welsh Government to lower the costs of living in Wales by freezing council tax this year.

Presiding Officer, this settlement is a missed opportunity to help councils and communities to build back better following the COVID-19 pandemic. Despite substantial resources from the UK Conservative Government, the Welsh Government has failed to provide councils with a long-term ambitious funding settlement that enables them to invest in the services they provide and react to the impact that the COVID pandemic will have in the future. We need a fair funding settlement for all those councils to enable them to deliver services that people need, and an independent review of the funding formula to ensure that all local authorities receive their fair share of funding. Thank you.