Questions Without Notice from Party Spokespeople

Part of 1. Questions to the Minister for Finance and Local Government – in the Senedd at 1:51 pm on 26 October 2022.

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Photo of Rebecca Evans Rebecca Evans Labour 1:51, 26 October 2022

Well, I've had the opportunity to discuss these issues in depth with the local authority leaders very recently. So, as you've heard, we have now fortnightly meetings with local authority leaders. In last week's meeting, actually, one of the substantive items was budgetary pressures, and they were able to give those figures to me at that meeting. We also had, last week or the week before, a meeting of the finance sub-group, which again delved into those figures in greater detail. Obviously, they are extremely concerning in terms of the pressures that are being faced.

So, I'm being told that key areas include pay inflation, energy costs, schools, social care, the response to the situation in Ukraine and wider migration issues, alongside housing, homelessness and, of course, capital investment and the associated investment in climate change—so, lots of important areas there. Some of them aren't statutory, but nonetheless absolutely vital. So, we are having discussions with local authorities to see what we can practically do to support them. One of those things might be to assist them in terms of the prioritisation exercise locally. We're also looking at the grants that we provide to local government. So, £1.2 billion of grants are provided to local government every year, and local government is making the case that perhaps some of those should go into the revenue support grant rather than through particular grants, so I've said that I would broker discussions with whichever relevant Ministers need to be involved in those. And also looking again to see around the capitalisation of some costs—they've asked us to look at that. So, we've returned to local government asking for some more detail on those discussions. So, we are being as helpful as we possibly can be, obviously, to local government at what is a really worrying time for them and for us.