Local Authorities in North Wales

Part of 1. Questions to the Minister for Finance and Local Government – in the Senedd at 1:53 pm on 2 February 2022.

Alert me about debates like this

Photo of Carolyn Thomas Carolyn Thomas Labour 1:53, 2 February 2022

Thank you for that answer, Minister. It's often raised with me that the funding formula for local authorities needs addressing. I think it's been raised here quite a few times as well. For the last few years, the debate has gone round and round in circles, with council leaders writing to Welsh Government, Welsh Government then saying the Welsh Local Government Association need to agree as a collective, and then they have different views because there are huge winners and losers. But, councils are still feeling the pain of austerity, and although this year was a good settlement, the variance per capita and per council can be hugely significant, with the gap between the highest and lowest paid council widening year upon year. The cumulative impact can mean the baseline for some remains low each year, so the difference between two neighbouring councils can be £650 per resident and £50 million or more per annum. For example, a £20 million highways maintenance grant through the formula can equate to £1.2 million for one authority and £850,000 for another. If this continues each year then the cumulative impact continues to grow as well, so one will do well while the other one struggles. So, could the distribution committee that sits below the finance committee investigate the funding formula going forward, or having a funding floor?