Welsh councils await consequentials from £600m English local authority funding boost

Hard hit Welsh councils could be in line for some form of funding boost, if Council funding in England is passported directly to their budgets.

UK Government have announced a support package for England, with additional £500 million added to the Social Care Grant to ‘bolster council social care budgets’.

UK Government said of England, “All councils will also see an increase in Core Spending Power of at least 4% through the Funding Guarantee before any local choices on council tax, efficiencies or reserves – an increase from the 3% announced at the provisional settlement.”

Levelling Up Secretary Michael Gove said: “We have listened to councils across England about the pressures they’re facing and have always stood ready to help those in need.

“This additional £600 million support package illustrates our commitment to local government. We are in their corner, and we support the incredible and often unsung work they do day-to-day to support people across the country.”

For England UK Government added, ” Separately, councils will be asked to produce productivity plans which will set out how they will improve service performance and reduce wasteful spend – including on consultants and HR spending on equality, diversity and inclusion.

The UK Government announcement notes “The Barnett formula will apply in the usual way” meaning there should be some cash for Wales as a result.

As we have previously reported Barnett consequentials are rarely a straight percentage sum due to the way the whole system works, however it is likely there will be some form of ‘extra’ money due to the announcement in England.

If there is ‘extra’ cash for Wales it will be up to Welsh Government on where that ends up.

In Wales there has been some reaction with Sam Rowlands MS, Conservative Shadow Minister for Local Government, saying, “This new funding will be welcomed by households across Wales.

“Hard-pressed families are staring down the barrel of huge council tax rises because the Labour Welsh Government are shamefully underfunding local authorities.

“It’s imperative that every penny of this funding makes its way to into council budgets and that none of it is pinched by Labour and Plaid Cymru to fund their vanity projects.”

Gareth Davies MS, Shadow Minister for Social Services, said: “This new funding is a huge boost to the provision of social care in Wales.

“With council budgets under intense pressure, this new cash will deliver vital services for those who need them.

“The Welsh Government must ensure that this pot of cash is not raided to fund Labour and Plaid Cymru’s misplaced priorities.”

Mr Rowlands nor Mr Davies gave an exact figure of what they expect to be usable in Wales.

There were no details on if it was expected the ‘productivity plans’, consultants spending, and ‘HR spending on equality, diversity and inclusion’ would also come under the spotlight in Wales.

More information will likely emerge over the coming days and weeks.