Councils in Wales to get 7.9% rise in funding from Welsh Government

Councils across Wales will receive an increase in their funding next year.

The Welsh Government has today published its provisional local government settlement for 2023 to 2024.

Core revenue funding for local government will increase by 7.9% on a like-for-like basis, compared to the current year. No local authority will receive less than an 6.5% increase.

Social care, education and other key services provided by local authorities will be backed with £5.5 billion in Welsh Government Revenue Support Grant and non-domestic rates.

The settlement reflects the government’s commitment to support key front-line services and protect the vulnerable and includes funding for the real Living Wage for care workers, the teachers’ pay deal, and the Council Tax Reduction Scheme. It also includes the support for businesses announced on Monday.

Rebecca Evans, Minister for Finance and Local Government, said: “This settlement builds on improved allocations in recent years and provides local authorities with a stable platform on which to plan their budgets for the coming financial year and beyond.

“When I announced our budget yesterday I prioritised the protection of frontline public services, and this increased funding to councils – who deliver so many of these services – is a vital part of that.’

“I recognise however that inflationary pressures being faced by services mean that local authorities will still need to make difficult decisions in setting their budgets.

“We will continue to work closely with local government to meet the shared challenges we face and deliver services to benefit the people of Wales.”

Commenting, Welsh Conservative Shadow Local Government Minister, Sam Rowlands MS said: “I welcome the funding settlements for councils that bares a degree of reflection to the substantial usable reserves held by some councils.

“It is worth repeating these calls as the hundreds of millions of reserves could certainly be put to better use delivering frontline services to local people.

“We were also pleased to see that our calls for fair funding for rural communities being listened to, with North Wales councils finally finding themselves in the top half of the table.”

A 7-week consultation on the provisional settlement has opened today, which will end on 2 February 2023.

2023-24 provisional Settlement