A Stable Settlement In Uncertain Times: Mark Drakeford Sets Out Local Government Funding For 2017-18

Local Government Secretary Mark Drakeford has announced £4.107 billion of funding for local authorities in 2017-18. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

Local government will see an increase in its funding for 2017-18 of £3.8 million compared to 2016-17. This is the first increase in the settlement for local government since 2013-14. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

The settlement includes £25 million to support the delivery of strong social services which are vital to the long-term success of the health service in Wales. This additional funding recognises the growing pressures which social services face. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

It also takes account of Welsh Government’s agreement with Plaid Cymru to provide local government with an additional £25 million through the settlement to support the delivery of vital services, as well as providing £1 million for school transport and £3 million for a pilot scheme to support town centre car parking. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

Capital funding for 2017-18 amounts to £442 million, with General Capital funding for 2017-18 unchanged at £143 million. This means that councils will be able to press ahead in building new schools, improving local roads and providing vital infrastructure. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

The Local Government Secretary also today published as much information as possible about other Welsh Government grant schemes planned for 2017-18. This identifies a further £650 million of funding for key priorities and will assist local authorities in preparing their budgets for next year. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

Another essential component of the provisional settlement is the funding for Council Tax Reduction Schemes. Maintaining the funding through the settlement at £244 million will ensure local government is able to continue to provide vital support to nearly 300,000 of our most vulnerable families. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

Announcing the provisional settlement, Mark Drakeford said: ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“The aim of this provisional settlement is to give local authorities the stability to manage the difficult decisions that lie ahead. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“We know that councils are delivering their services against a backdrop of austerity and this settlement provides a platform from which to plan for harder choices which will lie ahead. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“The changes we are implementing this year are based on the advice of an expert group comprised of local authorities and independent specialists. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“The package also includes additional funding to implement a minus 0.5% funding floor which limits the impact on councils that would have seen the biggest reductions in their core funding. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“As a result, this is the first cash increase in the local government settlement since 2013-14. Under the funding floor, no council will have to manage on less than 99.5% of the cash provided to them last year. When added to the other sources of income available to them, many councils will be able to increase their spending next year. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“Within the overall settlement, councils will also receive £25 million in recognition of the importance of strong local social services and the growing pressures felt by this service. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“This is a stable settlement in challenging times and will allow local government to set sustainable budgets despite constraints on public finances.” ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​