Diolch. Today, I'm presenting to the Senedd for its approval the 2022-23 local government settlement for the 22 unitary authorities in Wales. Firstly, I'd like to record my thanks to local government for both the way in which they have approached this settlement round, and for the critical work that they do day to day in our communities and for people and businesses across Wales, particularly, of course, given the events of the past two years. I hope that you'll join me in thanking them for their hard work and their dedication. In preparing for the Welsh budget, and this settlement, we have engaged with local government throughout the process. I am grateful to local government for the way in which those discussions have been held, and to my officials for the detailed and careful work that they have undertaken as part of this process.

This year, I am pleased to propose to the Senedd a settlement for 2022-23 that is 9.4 per cent higher than that in the current financial year on a like-for-like basis. This equates to an increase of £437 million over 2021-22, with the smallest local authority increase in this settlement, 8.4 per cent, higher than the increase for any authority in any prior settlement for at least 17 years. In 2022-23, local authorities in Wales will receive £5.1 billion in general revenue allocations, from core funding and non-domestic rates. This is a good settlement for local government, including Wales-level core funding allocations for 2023-24 and 2024-25. It provides local authorities with a stable platform on which to plan their budgets for the coming financial year and beyond.

We have worked closely with local government, and we appreciate the pressure that they're facing. We will continue to protect local government, particularly at this difficult and challenging time. In making decisions about the level of funding for local government, I responded to the need to ensure that hard-working staff receive a well-deserved pay rise in future. In particular, I've included funding to enable local authorities to meet our real living wage for social care commitment, as well as the increased costs of teachers' pay and, more widely, to cover the increased costs local authorities will face as a result of the UK Government's announcement to increase the national insurance contributions for employers.

In addition to the core unhypothecated funding delivered through the settlement, I'm grateful that my Cabinet colleagues have provided indicative information on revenue and capital grants planned for 2022-23. These currently amount to nearly £1.2 billion for revenue, and over £740 million for capital for our shared priorities with local government. General capital funding for local government for 2022-23 will be set at £150 million. This will increase to £200 million for the following two years, including £20 million in each year to enable authorities to respond to our joint priority of decarbonisation.

In addition, I wrote to local authority leaders last month to announce a further £70 million capital in the current financial year, to support authorities' overall capital programmes, including impacts on highways. I am also announcing today an additional £60 million, to be added to the current year's settlement, to support local authorities in managing their budgets more effectively over the period 2021-22 to 2024-25, against the context of inflationary and service pressures and the ending of the local government hardship fund. This funding will also enable local government to respond to their ambition to increase their domiciliary support service capacity, through funding driving lessons and providing access to electric vehicles. This will also help authorities continue to decarbonise their services and respond to the climate and nature emergency. The publication of the latest report on climate impact and adaptation by the Intergovernmental Panel on Climate Change shows just how important it is that we all do so. I ask the Members of the Senedd to support the motion.