3. What consideration has the Welsh Government given to how it can help local authorities to devise contingency plans to mitigate against increased energy costs? OQ58616

Rising energy costs are significantly worrying for local communities and we call for the UK Government to take action to stem the increases. Welsh Government delivers support across the public sector through investing in skills, energy efficiency, research, innovation, decarbonisation and a renewable energy future for Wales.

Diolch, Gweinidog. Huw has already mentioned the joint meeting that us South Wales West Members attended with council leaders across our region, and I would thank Mike Hedges for setting up that meeting. The reality of the situation is dire. We are facing wholesale cuts of council services. Bridgend County Borough Council face, for example, an unprecedented financial challenge over the coming years and estimate that spending reductions of up to £20 million in the 2023-24 financial period may be required to balance the budget. Now, whilst I live in hope that the now-delayed budget will bring some relief—I like to think that I'm optimistic every now and then—what work is the Welsh Government doing with local authorities to help them manage their budgets, but also to help our third sector providers and volunteer organisations manage theirs? Times are tough, they're about to get tougher, but times like these also require co-operation across all levels to protect our constituents.

I join you in also thanking Mike Hedges for facilitating the discussion. I can tell that it was a very impactful discussion, based not only on the order paper for questions today; I see that those discussions that you've had with local government have really had an impact in terms of giving you a real idea of the kinds of pressures that they're under and the holes in their budgets that they are looking to deal with. I know that you're particularly concerned about the cost of energy, and we are working really closely with local authorities. Local authorities themselves this financial year are in a better position in the sense that most of them purchase their energy from the Crown Commercial Service, so they're protected in this financial year from the volatile global energy prices. But what we're doing at the moment is assessing the impact on prices and budgets for 2023-24, and our Welsh Government procurement professionals are currently working with suppliers and the Crown Commercial Service to support local authorities so that they can plan at least with a level of confidence in terms of the numbers for the next year. 

As many of the local authorities' contracts have already been agreed, I think that we're less worried, as I say, this year, but our real concerns are for next year, and this is why it's really important that the UK Government's energy review concludes rapidly, so that we can provide that confidence, but also that it really does consider the impact on local government and on the third sector, as you've referred to, as well, in terms of allowing them to keep on providing the vital services that they do. I'm sure we've all had discussions about the cost of just keeping the lights on in schools, for example, which has gone through the roof for future years. So, I know that those discussions are live, and just to reassure you that our procurement team are involved in that. 

Minister, local authorities are responsible for agreeing school budgets, and energy is one of the big costs our schools face. In many schools we see big old boilers that are very expensive to run. What assessments have you made, together with local authorities, of the costs now facing schools as we look to the next six and 12 months? And what measures are you considering to ensure that our schools can keep warm? Thank you. 

Well, of course, the best thing that could happen to keep schools warm would be for the UK Government to step into this space. [Interruption.] I hear the Conservatives groaning out loud, but that is going to be the real answer in terms of ensuring that there is an affordable price for energy within schools. That's not the Welsh Government abdicating its responsibility. It's not the Welsh Government's responsibility to step in on energy prices. Welsh Government couldn't introduce a windfall tax, even if we wanted to, because we don't have the powers to do so. That's something that the UK Government should be stepping in to do at this point.

Fortunately, we have had discussions about reserves earlier in this question session, and reserves within schools are looking healthy. So, some schools will be able to make investments and be able to consider how they use those reserves in respect of addressing the cost-of-living crisis. That said, I am very mindful that the positive situation for reserves in schools isn't uniform across Wales, and there are schools that don't have those significant reserves that they'll be looking to rely on.  

Question 4 [OQ58605] has been withdrawn. Question 5, Heledd Fychan.