Core funding for local government to increase by 7.9%

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.”

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