The final item this afternoon is the debate on amendments to the 2020-21 local government and police settlements, and I call on the Minister for Housing and Local Government, Julie James.

Motion NDM7659 Rebecca Evans

To propose that the Senedd, in accordance with Section 84H of the Local Government Finance Act 1988, approves the Amended Local Government Finance Report (No. 1) 2020-21 (Final Settlement—Councils) and the Amended Local Government Finance Report (No. 2) 2020-21 (Final Settlement—Police and Crime Commissioners), which were laid in the Table Office on 16 March 2021.

Motion moved.

Diolch, Llywydd. Today I am presenting to the Senedd for its approval a technical revision of the local government and police settlements for 2020-21. That is for the financial year about to end. The revised local government finance reports reflect the adjustments made in the third supplementary budget that provided for the increase in revenue support grant. As we all know, the local government and police settlements are made up of both redistributive non-domestic rates, NDR, and the Welsh Government revenue support grant. Together, these make up aggregate external finance. The distributable amount of NDR for each local government settlement is estimated at the time the settlement is calculated. The NDR account is managed over more than one financial year in order to manage the risks of local and national economic variations year on year.

The revised local government finance reports before you today rebalance the proportions of RSG and NDR in the current year settlement. The overall aggregate external finance will be unchanged at both the all-Wales and the individual authority and police force levels, i.e. no authority or police force will lose or gain from this change. It is a purely technical adjustment. Doing this will enable the Government to more effectively manage the deficit on the NDR account over a number of years. It will ensure that we use the COVID-specific and time-limited funding we have available to respond to the impact of the pandemic on business rates, as we have done in respect of council tax and other income. This is a prudent approach. The long-term outlook for NDR is difficult to assess, but several factors suggest that it will not recover in the short term given the expectation that Government will need to continue to impose restrictions on businesses and individuals to control the public health effects of the COVID-19 pandemic. While nothing is certain in this uncertain world, taking this step now should mean that there will be a reduced deficit on the NDR account for the next Government to consider in setting its budget for 2022-23.

In addition to the funding provided for the local government settlement, Welsh Government has made available additional support through the hardship fund and other grants of over £660 million in this financial year to enable local authorities to respond to the impacts of the COVID-19 pandemic. The local government and police response to the challenges of the past year has been immense, and from EU exit, flooding and extreme weather to the impact of the pandemic, public servants have risen to the needs of Wales's citizens. Local authorities have provided support for individuals, communities and businesses. They have run, with the NHS, our contact tracing system and ensured those self-isolating are supported. They have continued to provide for the education of our children and the day-to-day services like waste and recycling we all rely on. The police have continued to keep us safe on our streets, in our homes and on our roads. They've engaged with good humour and patience as we have all learned to live in and out of restrictions, including, where appropriate, more robust enforcement. I therefore ask Senedd Members to support this motion today. Diolch.

Thank you. I have no speakers in this debate. I assume the Minister doesn't wish to reply. Therefore, the proposal is to agree the motion. Does any Member object? [Objection.] Yes, there is an objection. We will therefore defer voting under this item until voting time.

Voting deferred until voting time.

And that brings us to voting time, and we will take a short break to make technical preparations for the vote. A short break.

Plenary was suspended at 19:18

The Senedd reconvened at 19:22, with the Llywydd in the Chair.