6. Statement by the Minister for Finance and Local Government: Response to the UK Government Autumn Statement and Economic and Fiscal Forecasts

Part of the debate – in the Senedd at 4:01 pm on 22 November 2022.

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Photo of Rebecca Evans Rebecca Evans Labour 4:01, 22 November 2022

Yes, I'm really grateful for those points, and Carolyn Thomas always makes a strong defence and a strong case for local government. I had the opportunity to meet with local government leaders and chief executives yesterday morning, to talk through the implications of the budget, and again, they were making those very, very strong cases in terms particularly of social care, education and all of the pressures across the services that they provide, and talking about the implications for delivery if that funding gap is not met. So, I think it's helpful that we do now have that overall picture in relation to consequentials.

It is important as well to recognise that, although we don't have to obviously do the same thing here, it is helpful if people have a picture of what the consequentials relate to across the border in England. So, 44 per cent of those consequential moneys actually relate to a new non-domestic rates scheme, which the UK Government is introducing across the border, so obviously we're looking very closely at that. It in part includes transitional support for those businesses that are seeing an increase in their bills, as they move to the new ratings list, because the Valuation Office Agency has just completed a revaluation. So, again, we need to look at the implications for that for us here in Wales. But of the consequentials next year, there are £666 million; in England, that's £294 million in relation to non-domestic rates. And the year after, we have £509 million consequentials, and the figure that relates to non-domestic rates in that year is £146 million. So, I think that that does show and gives a bit of colour to the funding that we've received.

That said, I know that you've also been very keen that we look at other ways to help local authorities, such as potentially moving more funding from the specific grants into the revenue support grant—that's something we're actively looking at at the moment. Capitalisation of some costs has been something that we've been asked to explore again, which is what we're doing, and also local authorities have talked to us about the extreme pressure that they and their officers are under in so many ways at the moment, responding to the cost-of-living crisis. So, they've asked us if there are things that we could look at potentially delivering over a longer period of time to release and relieve some of that pressure. So, again, that's something that we're actively looking at at the moment.