Newport set for biggest rise in final Welsh Government funding settlement

Newport City Council is set to receive the biggest rise in local authority funding from the Welsh Government next year.

The Welsh Government has published its final local government settlement for the upcoming financial year.

Funding for councils will rise by an average of 3.8 per cent, minister for housing and local government Julie James confirmed.

Newport will get the biggest rise at 5.6 per cent, while Ceredigion will see the smallest increase at two per cent.

Elsewhere in Gwent, Torfaen council’s funding will increase by 4.3 per cent, Monmouthshire’s by 3.9 per cent, Blaenau Gwent by 3.7 per cent and Caerphilly by 3.1 per cent.

There are no changes to the provisional settlement announced in December.

Here’s how much each local authority in the Gwent region will receive in April (compared with the current financial year):
Newport: £241 million, up 5.6 per cent.
Torfaen: £146 million, up 4.3 per cent.
Monmouthshire: £101 million, up 3.9 per cent.
Blaenau Gwent: £120 million, up 3.7 per cent.
Caerphilly: £292 million, up 3.1 per cent.

Ms James said that the Welsh Government’s funding priorities continue to be health and local government services.

“This is undoubtedly a good settlement for local government,” she said.

“However, I am aware a second good settlement in as many years does not make up for 10 years of the UK government’s austerity agenda.”

Ms James said she was aware local government has faced “significant pressures”, particularly arising from the coronavirus pandemic.

As part of the Welsh Government’s budget, the local government hardship fund has been extended for six months, with £206-million to support councils with additional costs and loss of income due to the pandemic.

Capital funding for 2021-22 will be set at £198 million, including £20-million for the public highways refurbishment grant.

This will help local authorities to continue to respond to Welsh Government priorities of decarbonisation, the climate emergency and economic recovery following Covid-19, Ms James said.

The final local government settlement is expected to be signed off at a Senedd debate on March 9.