NO COUNCIL in Gwent will see its funding cut in the coming financial year under plans by the Welsh Government.

As part of its draft budget for 2020-2021, the Welsh Government has also revealed its provisional local government settlement, setting out how much funding each of Wales' 22 councils will be given in April.

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.

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This is how much each council will be given compared with the current financial year:

  • Newport: £228 million, up 5.4 per cent.
  • Monmouthshire: £98 million, up three per cent.
  • Torfaen: £140 million, up 4.5 per cent.
  • Blaenau Gwent: £116 million, up 3.9 per cent.
  • Caerphilly: £283 million, up 4.1 per cent.

The allocations do not include a funding floor, or a minimum amount each council must receive.

Leader of Monmouthshire County Council Cllr Peter Fox described the settlement as "so disappointing".

South Wales Argus:

Cllr Peter Fox

“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," he said. “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 minister's 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 council's cabinet member for resources Cllr Kelly Preston welcomed the provisional figures.

“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," she said.

“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.”

And a spokesman for Caerphilly County Borough Council said the provisional settlement "looks positive".

"We now need time to consider how it will impact our budget assumptions for 2020/21 and beyond," he said.

“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.”  

Newport and Blaenau Gwent councils had not responded to request for comment as the Argus went to press.

In a letter to Welsh councils, the Welsh Government's cabinet minister for housing and local government, Julie 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.”

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The Welsh Local Government Association (WLGA) said this was the first significant increase in local councils’ 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.”