2. What assessment has the Welsh Government made of the impact of the cost-of-living crisis on local authority budgets? OQ57575

Local authority and family budgets are feeling the effects of energy bills at an all-time high, mounting food costs and the highest inflation rates in a decade. The UK Government must take urgent action to tackle the cost-of-living crisis. The last UK Government budget was a missed opportunity.

Well, there is a cost-of-living tsunami breaking around us, isn't there, Minister? And once again, local authorities, among others of course, will be in the eye of the storm as they continue to deal on the one hand with the challenges of COVID, whilst also having to step in with additional support as people rely more on their services, because they can't afford to pay their rent, or heat their homes, or buy food. Now, the response to the COVID crisis, of course, was swift and very substantial, and local authorities in Wales were given additional funding from you to respond to those huge pressures. Do you accept that it's entirely possible that the same kind of response will be needed to the cost-of-living crisis, and, if you do, then can you give an assurance that your Government is willing to step into the breach with additional support to local authorities to meet the additional demand placed upon them if that is required during the next financial year?

Thank you for the question. As I responded in my answer to your colleague Luke Fletcher, we have deployed virtually all of the available funding, so there won't be opportunities to reopen budgets in that sense in the next financial year, other than in the event of a UK Government budget, which would provide additional consequential funding to Wales. But, that said, we've been really mindful of the pressures on local authorities and the importance of the services that they deliver. And that's why the 2022-23 settlement, which I announced provisionally in December, is a good settlement for local government, providing a 9.4 per cent increase in funding on a like-for-like basis. And I do think that that puts local authorities on a good footing to be able to serve communities.

That said, I'm really aware of the current pressures facing local authorities, which is why, today, I've written to leaders, confirming discussions that have been had at officer and official level that there will be £70 million of capital to support local authorities with their overall capital programmes, including impacts on highways, for example. And in doing so, I've been very mindful of the increased cost of materials, for example, that local authorities are facing in respect of their capital projects. So, next year, I think local authorities do have a good settlement, which enables them to plan, and we're also seeking to do what we can to support individual families. I don't think that it's possible for us to step into the breach entirely, because it is the UK Government that has the fiscal firepower to deal with the cost-of-living crisis. But, that said, where we can act, we will act, and you've seen us do so recently with the £200 payment to eligible households in respect of their energy bills.

Apologies in advance, as I'll follow the same theme as Llyr, if I may, but I'm conscious of your answer, Minister. As we know, the pandemic has had a substantial economic impact on families and resulted in more people needing access to financial advice and support. Councils are often the first port of call for people, and offer an important source of help and advice, and so increasing demand for support will have cost implications for councils, and pressures will no doubt rise as more help is required for individuals, communities and many other groups across the wider community. As I understand it, the Welsh Government's single advice fund is available to local authorities, but only if the funded services are to be planned and delivered on a regional basis. Therefore, Minister, I wondered what consideration has the Welsh Government given to relaxing the single advice service criteria to allow councils to more easily access funding so that they can expand their local support services in a far quicker and targeted way? And what else is the Welsh Government doing to help councils to provide additional support to those who need it? Thank you.

Thank you for raising the issue of the single advice fund. The policy behind that fund and the operation of it lie in the portfolio of my colleague the Minister for Social Justice, but I will make a point of having a conversation with her about that. And I also have the opportunity regularly to meet with leaders of local government, as you'll recall from not too long ago, and I will take an opportunity in one of those upcoming meetings to explore their thoughts on the single advice fund and what it means for them in terms of their ability to support their local residents.