Thank you, Minister, for bringing forward today's statement on the draft budget. Just a brief reminder at this point that I'm still a member of Conwy County Borough Council, as my register of interest shows.

Like many Members, just before Christmas, while I was doing my best to ensure Father Christmas was able to arrive safe and well, I too was eagerly awaiting for the draft budget to be released and to see what would be spent where, and the effects that this would have. As my colleague Peter Fox excellently outlined in his contribution, whilst acknowledging the pressures caused by the pandemic, despite Mr Davies's concerns that some of us Conservatives aren't perhaps conservative enough, this budget must be invested wisely to deliver on the priorities of working people, with a laser-like focus on creating better paid jobs and delivering vital public services.

As a Minister, you've outlined yourself something that I've continuously raised with you during this pandemic, which is that councils have gone above and beyond in providing vital services to local people. Indeed, this sentiment has been repeated by Members across parties today, including Mr Hedges and Mr Gruffydd as well in their contributions. So, it will come as no surprise today that I will focus my brief contribution on local government, and specifically the local government settlement. I know that many councils up and down Wales, including the Welsh Local Government Association, have welcomed the local government settlement within this budget—an increase of 9.4 per cent on a like-for-like basis compared to the current year. Of course, as an ex-council leader, I too would have liked to have seen this during my time leading a council.

It is fair, though, also to say that this local government settlement has come after years and years of underfunding to councils, especially those further north and perhaps rural councils, which have had significant cuts over that time. Because of this, and despite the increase in funding, it looks like many councils will still have to raise council tax this year to cover their pressures. But more funding to councils this year could have alleviated this issue. It's now likely that increased pressure will be put on local residents through higher taxation, even though they have been hit hard during this COVID-19 pandemic. With this context in mind, I would like to raise just three really brief points, Deputy Presiding Officer.

First, linked to these pressures, it's worth highlighting the financial demands that councils are likely to face over the next three years. This has been estimated at over £1 billion of increased pressures. And, Minister, as your statement noted, the funding to cover this over the next three years has only been committed to three quarters of this, at £750 million. In fact, future years show significant shortfalls in funding likely to be made to councils. It would be a welcome move if, Minister, you could consider proper funding of these next three years of pressures to enable councils to deliver the services that our residents need.

Secondly, Minister, as you will be well aware, councils and council leaders work best when there is financial certainty and they can plan for the future. However, despite you receiving your future settlement for the next three years from the UK Government, there is still no specific breakdown of funding to individual councils beyond 2023. And the Welsh Local Government Association have been clear that a breakdown of funding beyond this time would be really beneficial. So, in light of this, I am disappointed that this hasn't been provided, and I hope that it's something that you're able to look into sooner rather than later.

Finally, a massive issue facing many councils up and down Wales is supporting an ageing population through social care. I have concerns that the current financial formula for local government does not properly reflect this shift in our population and the pressures that our hard-working services face. An example of this, just briefly, is that the current funding formula provides councils with over £1,500 for everybody over the age of 85, but for those aged 60 to 84, it provides just £10.72—a huge discrepancy in the formula, which makes it very difficult for councils supporting an ageing population. So, I would welcome a continued review of that formula with the Welsh Local Government Association, to make sure that it is still appropriate.

So, to conclude, there are, of course, positives from the local government settlement, which are welcomed. Nevertheless, as I've outlined, there are numerous issues that need to be addressed. I look forward to scrutinising the Minister over the settlement in the coming weeks on our Local Government and Housing Committee and putting forward our response from my side of the benches to this really important piece of work. Diolch yn fawr iawn.