7. Debate: Amendment to the 2021-22 Local Government Settlement

Part of the debate – in the Senedd at 4:29 pm on 15 March 2022.

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Photo of Rebecca Evans Rebecca Evans Labour 4:29, 15 March 2022

Thank you very much to Peter Fox for his contribution and also for confirming the Welsh Conservative support for this motion today. So, I'm just happy to respond to those specific questions. So, yes, the amended local government finance report does reflect the £50 million increase in funding, and that was, as Peter Fox says, announced in the publication of the second supplementary budget. And it's an additional £10 million that I am able to make today, reflecting on where we are at the end of the financial year and looking at the resources available to us. The £50 million was at the point of the laying of the second supplementary budget, but I'm able now to provide the additional £10 million, and that's, as I say, reflecting the management of the budget that we have for this financial year.

In terms of how we've arrived at this figure and how we have arrived at what a local authority might want to spend this on, again that's been in discussion with local government. You'll remember recently I announced an additional £70 million in capital; well, that came about following some strong representations that local government had made to me in respect of road repairs locally, for example. So, whilst it is up to local authorities to decide how to spend that funding—they do have full flexibility—there's also an understanding that it is based on what they told me that they need the funding for. They do have that flexibility, but then we have an understanding in that respect as well, and the same applies here, because this is another way, I think, in which local authorities can demonstrate their very clear, I think, and very strong commitment to decarbonisation and also their commitment to social care and trying to recruit and retain social care staff.

These are some examples of the ways in which local government has come up with ideas for ways in which they can deploy this additional funding. Of course, it does give local authorities some flexibility in future years as well, should they decide to stagger the spending of this money, because as we've discussed previously, it will be years 2 and 3 of this spending review that are more difficult for local authorities. They'll need to factor this in to their considerations while they decide how to spend the additional funding announced today.