Part of 1. Questions to the Minister for Finance and Local Government – in the Senedd at 1:49 pm on 26 October 2022.
Diolch, Llywydd. Afternoon, Minister. Cumulatively, the financial pressures building up in the local government system, of course, are beyond anything, really, that we've probably ever seen before, even though pressures in the current financial year were offset somewhat by a better than expected settlement for this year. That feels a different world away, doesn't it—only, what, eight months ago when that 9.4 per cent settlement was confirmed.
It is becoming clear that additional in-year pressures, amounting to over £0.25 billion, are potentially facing local councils in Wales this year, and there's an expected cumulative shortfall of over £800 million by the end of this three-year spending or funding cycle. Every authority is now reporting budget gaps, and other maybe than the experience of the early months of the COVID pandemic, these are unprecedented pressures that are being faced. So, the risks to all local government services, including, of course, significant statutory services, such as education and social care, can't be underestimated. So, if, as is being suggested, statutory services are facing significant cuts, what discussions have you had or what consideration are you giving to actually advising local authorities about which statutory services they should be prioritising? Because many of those councils are telling me that they need a clear steer from the Welsh Government. In a climate where they just can't deliver what they're expected to deliver, the message I'm getting is that the Welsh Government really needs to make it clear what councils are expected to prioritise when it comes to protecting key services.