Thank you for the opportunity to debate on budget preparations for the next financial year or so. This is a timely debate, and obviously an extremely important one as we come out from the COVID-19 pandemic, and I would like to turn my contribution to local government, and the role and opportunity of properly supporting councils. But at this point, I remind Members of my interest as an elected member of Conwy County Borough Council as well.

Throughout this pandemic, councils have worked incredibly hard, and their efforts have been exceptional. The last year and a half has shown that councils are often best placed to decide what is best for their area. People know who their local councillors are, and have a personal connection with that local democracy as well. As such, it's vitally important that they have the finances to deliver on local priorities. Councils in Wales, as we know, have faced substantial pressures during the pandemic, and some of the most recent information shows that Welsh councils have so far reported financial losses of hundreds of millions of pounds through loss of income and additional expenditure. I certainly acknowledge the significant support that Government has provided to councils through this time, but these losses will have a significant impact on future council budgets, leading to increased budgetary pressures, not just now, but in the future, too. The latest report from Wales Fiscal Analysis showed that unfinanced pressures in councils next year could be over £400 million, and this needs to be properly acknowledged and supported through budgetary decisions so that councils can deliver on those local priorities.

So, from delivering local services to supporting vulnerable people and delivering business support, councils have shown what they can do when they are properly funded and supported, and this can often be done while providing value for money and clear local accountability. In terms of value for money, we know that local spending by local authorities does provide that value for money. Local government can often work more closely and better with local suppliers, and reports have even shown that, for every £1 spent with a local supplier, it's worth about £1.76 to the local economy, but only 36p if it's spent out of the local area. That makes every £1 spent locally worth around 400 per cent more to the local economy, so it provides really good value for money in the local areas.

Finally, the work and planning of councils can be further strengthened through the delivery of realistic, multi-year settlements for those councils, and this would give longer term financial certainty to support the delivery of vital services. Furthermore, as I've already said in the Chamber many times, now is the time to devolve more powers to councils and bring that power closer to people, which would be welcomed along with that proper financial support. So, to conclude, Llywydd, from my side, now is the time for this Welsh Government budget in the planning for next year to allow councils to flourish through more certainty of funding, and to empower local decision making through those levels of funding that reflect the value that councils have in our nation. Diolch yn fawr iawn.