6. Will the Minister make a statement on the funding of local authorities in South Wales West? OQ58621

I will continue to prioritise funding for all local authorities in Wales through a transparent, equitable and jointly produced distribution formula for the local government settlement with our local government partners.

Diolch, Weinidog. Minister, the leader of Neath Port Talbot Council asked me, in a recent letter, to press for sufficient additional resources to enable the council to continue to support its communities through the current crises. He compares the current cost-of-living crisis with the COVID crisis, when local government demonstrated time and time again how it is uniquely placed to respond to local needs. But NPT estimate that they are facing unfunded in-year pressures of £10 million, and £24 million during the next financial year. At the same time, of course, the continued impact of the pandemic and current economic crisis have created unprecedented demand on services. For example, presentations to NPT's housing options service are 400 per cent higher than pre pandemic, contacts with children's social services are 300 per cent higher, and I attended that same regional WLGA meeting last week, in which the same bleak situation was repeated and outlined. So, how is the Minister going to ensure that our local authorities are able to maintain core services? We know the door of No. 10 Downing Street is shut firmly in Wales's face, so what answer will council leaders of South Wales West get from Cardiff Bay? Raising council tax isn't a progressive option, so what other ways are there to raise the required revenue?

Thank you very much for the question, and I do recognise that similarity in terms of the crisis of the pandemic and the crisis of the cost-of-living crisis. What's different, of course, is that the pandemic attracted significant additional funding in terms of helping us to manage that, whereas the cost-of-living crisis has not provided us with significant additional funding to help us manage the crisis. And I just want to be really clear that we have allocated all of the available funding. So, you'll have seen our budget this year: we had a small contingency reserve for in-year this year. Next year, we've allocated everything, so we will be managing any additional spend through the Wales reserve and that alone, and the same for the following year.

So, we've also got an over-programme on capital, which is obviously very stretched in the first place, and at the time we set that, we didn't realise that UK Government would be taking £30 million back in respect of supporting the arms for Ukraine. So, the budget is extremely stretched; there's no additional significant funding to be allocated, so it really is going to be a case now of hoping that the UK Government does the right thing at its spending review—sorry, at its autumn budget when it appears—and does provide the additional funding that authorities are calling out for, and I have to say, the health service is also calling out for in this situation as well. So, we await that with interest. It's a shame that it's been pushed back, because that makes our own budget planning much more difficult, and it makes it more difficult then for us to provide the kind of reassurance, or at least assurance, that the leader of Neath Port Talbot, and other leaders, are seeking from us at this time.