Local Government Settlement: Monmouthshire to see smallest rise

Gwent councils could receive an extra £36 million of funding between them, following the announcement of Welsh Government’s provisional local government settlement today.

The cabinet minister for housing and local government, Julie James AM, revealed the settlement for the 2020-21 financial year which includes an additional £184 million for councils across Wales.

In a letter to Welsh councils Ms James said: “This announcement outlines my intention to set local government core revenue funding for 2020-21 at £4.474 billion.

“I am pleased this means, after adjusting for transfers, overall core funding for local government in 2020-21 will increase by 4.3 per cent on a like-for-like basis compared to the current year.

“While this does not mean austerity is over and there are, I know significant pressures, I hope that this significant increase can help you support and continue local critical and valued services.”

The more than £4 billion allocated to Welsh councils does not include a funding floor, which has been removed for the 2020-21 budget.

The provisional data rates councils between a top figure of one and bottom of 22 based on funding reductions or increases compared to 2019-20.

While all councils across Wales are provisionally set to receive an increase in funding, Monmouthshire will see the smallest rise in Wales, and Newport the largest.

Monmouthshire County Borough Council’s funding is expected to increase by three percent  (£3 million) from £95 million to £98 million.

The leader of the council, Cllr Councillor Peter Fox said the settlement was disappointing.

He said: “I believe every council in Wales should receive exactly the same percentage gain or loss on their budget for the remainder of this Assembly term.

“If the government is too short sighted to introduce this fairness then I see justification in limiting the difference in awards between the biggest winner and biggest loser to one percent.

“I do not agree with the finance ministers’ view that a funding floor is not necessary.

“We are calling on Wales Government for the next three years to pass the same average rise/reduction to all councils in Wales.”

Torfaen County Borough Council should see a 4.5 percent increase from £134 million in 2019-20 to £140 million in 2020-21. The council ranks seventh in Wales.

The council’s cabinet member for resources Cllr Kelly Preston said: “The council welcomes this improved provisional settlement and after a decade of deep and damaging real term cuts, this is the best settlement for local government since 2007-2008.

 “I’m pleased our constructive engagement with Welsh Government has resulted in a settlement which will help pull local services back from breaking point in the next year, although the financial outlook still remains challenging.”

Caerphilly County Borough Council is set to receive £283 million from the Welsh Government’s settlement, which is a 4.1 percent increase on 2019-20, where the council received £272 million. They rank 16 of 22 councils.

A spokesman for the council said: “The provisional financial settlement from Welsh Government looks positive and we now need time to consider how it will impact our budget assumptions for 2020/21 and beyond.

“We are still in the middle of our budget consultation, so it is more important than ever that local people have their say in order to influence any changes to our savings proposals resulting from this improved financial outlook.” 

One place below Caerphilly in 17th is Blaenau Gwent County Borough Council with a 3.9 percent rise. The council is expected to receive £116 million next year, compared to £112 million in 2019-20.

Newport City Council on the other hand, provisionally has the highest increase in Wales from last year’s settlement of 5.4 percent.

The council could receive an extra £12 million compared to 2018-19, when they received £216 million. Provisionally, they will receive £228 million in 2020-21.

Both Blaenau Gwent council and Newport council hvae been approached for comment but none was provided.

The Welsh Local Government Association (WLGA)  said it was the first significant increase in local councils’ core grant funding in more than 12 years.

Their finance spokesman Cllr Anthony Hunt said: “Local government shares the same priorities with Welsh Government.

“Leaders across Wales will be doing everything in their power to ensure that funding is directed towards schools to improve education outcomes, and towards social care to ensure the most vulnerable in our communities receive the care they deserve.

“Councils have carefully managed their budgets throughout austerity, making efficiency savings year after year.

“After a decade of deep and damaging cuts, we were rapidly reaching breaking point.

“I hope this settlement marks the start of a completely different journey”