As Members will be aware, the local government funding formula represents around 70 per cent of a council's ability to spend on and deliver their services, meaning that this funding dictates the bulk of what councils are able to deliver. As outlined in the Government's amendment today, and as I'm sure many Members on Labour's benches here want to highlight, I do appreciate that the proposed local government settlement for the next financial year will rise by 9.4 per cent. Of course, this is welcomed. Nevertheless, it does come after years and years of underfunding and still doesn't address the fact that the current funding formula is out of date and not fit for purpose.

We also know that the Welsh Government revenue funding for local government fell, in real terms, by around 17 per cent through the last decade, and this decade of decline has clearly had a huge impact on local government services in Wales. This consistent underfunding of councils over many years has left many of them in a weak position to deal with the challenges of the present and the future. This is particularly seen with councils in north Wales—the region I represent, which has an older population and rural areas—who seem to be the losers from the funding formula.

I said I'd talk about some specifics. I want to highlight three issues that I believe warrant the call for a review. The first is the quality of the data used to indicate how much money councils should be supported with. There's a thing called the standard spending assessment, which I'm sure we all enjoy a read of from time to time, and this data in the standard spending assessment drives the decision making behind the funding of councils. But, sadly, a number of the data points in here are over 20 years out of date, and I'll highlight a couple of those that feed into this funding for local authorities. The first one here uses data from 2001, and this looks at how many dependent children are in social rented housing. First of all, 20-year-old data looking at how many dependent children are in social rented housing—none of those children are currently children. So, that funding formula there is completely bonkers. The next one, pensioners living alone in households, again uses data from 2001. Pensioners with limiting, long-term illness again uses data from 2001. In a world that is driven by data, with so much available to support decision making, it's completely inappropriate to be using information that is over 20 years out of date. There are the other points in here that are from 1991. I'm not sure if all the Members were born when some of those data points were used.

Secondly, the current financial formula does not properly reflect our ageing population and the support required to ensure our older people can live their best lives. An obvious example of this is that, looking at the funding formula, it assumes that the cost of councils supporting those over the age of 85 is around £1,500 per person, which may seem like an adequate amount. In the next age category, which is those who are age 60 to 84, the formula assumes that it would cost £10.72 to fund and support those people. So, at the age of 85, suddenly it's £1,500 per person, but for a number of years before that, it's just going to cost £10. It's a huge discrepancy, and a misunderstanding of what it takes to best support our ageing population. And, of course, our ageing population is going to become a more and more significant part of who we need to support, and support well, over coming years. By 2038, a quarter of our population will be over the age of 65 and, currently, in areas such as Conwy, 28 per cent of residents there are over the age of 65, compared to Cardiff, which has around 14 cent. So, you can see there are areas where the funding formula doesn't properly reflect the support required to support our older people. Those areas are going to struggle when it comes to funding from Welsh Government at the moment.

So, the first area is around data, which needs a review. The second area is how the support for older people is properly funded. And the third issue that I see is building confidence in the process of this funding. We can see from Welsh Government's amendment 4 today that Government do not want to hold an external independent review of the funding of local government, yet in today's debate, I'm sure that we'll hear from many on the Government benches about how good the funding formula is. But I'd like to ask: if it's so good, and if it's so right, what's wrong with holding an independent review? How about holding an independent review to show it works really well? What are you worried about in terms of having an independent review? Surely if it's that good, let's undertake that review and prove the point that you want to make, that it's all fine.

To conclude, acting Llywydd, councils do an unbelievable job with the funding that they get. If all councils received fair and right funding, they could flourish even more than they do today. Let's support this motion here today, and have an independent review of the funding of councils. Let's unleash the potential that councils have to offer in supporting their local communities. In closing, I look forward to listening to all contributions from all sides of the political spectrum today regarding this really important issue. Diolch yn fawr iawn.