Skip to content

Writtten Statement - Final Local Government Revenue and Capital Settlements 2011-12

Related Links

Tell us if you want any of the documents on this page in an alternative format.
Carl Sargeant, Minister for Social Justice and Local Government

Today I am announcing the details of the final revenue and capital settlements for the 22 unitary authorities in Wales for 2011-12.

 

The Overall Settlement

 

In preparing the final settlement I have given careful consideration to the responses I received through the consultation on the provisional settlement. 

 

Next year, before accounting for transfers, local authorities in Wales will receive a reduction of 1.4% on the previous year’s revenue settlement. This is broadly unchanged from the provisional settlement announcement I made on 23 November 2010.

The final settlement confirms the inclusion of a floor mechanism to ensure that all authorities will not receive a grant reduction of more than 1.7%.

 

Included in the final settlement are a further two specific grants in line with our commitment to reduce the amount of hypothecated funding provided outside the Revenue Support Grant. These are the Performance Management Development Fund (£3 million) and Implementation of the Strategy for Older People (£1 million).  

 

The Settlement also includes a slightly revised £10.117 million for the implementation of the social care First Steps Improvement package.

 

Specific Revenue Grants 

 

I am also providing local authorities with details of the total Wales specific grants they can expect to receive in 2011-12. Revenue Support Grant and Specific Grants taken together will provide authorities with a comprehensive picture of the funding the Assembly Government will provide in 2011-12, to allow them to budget effectively. In addition to the £4 billion authorities will receive through the settlement, they will also receive over £600 million in specific grants. Included within this are major grants for areas such as Foundation Phase and Supporting People.

 

Distribution between Authorities 

 

Table 1 attached details the relative annual increase in the revenue settlement for the twenty two authorities, after adjusting for transfers. These figures are the same to one decimal place as those published in the provisional settlement announcement.

 

Capital Settlement

 

With regard to the capital settlement, the capital allocation for 2011-12, including specific capital grants will be £456 million.

 

The General Capital Fund totals some £174 million. This is unhypothecated capital funding of which £54 million is paid as capital grant, the remainder, some £120 million, is provided as support for borrowing.

 

Further detailed tables will be made available on the Welsh Assembly Government’s internet site.

 

The overall package, as Local Government has acknowledged on the announcement of the provisional settlement, is as good an outcome as can be expected. It is essential that both the Assembly Government and Local Government now work together to seize the opportunity to establish better, more cost effective and innovative ways of delivering high quality services to the people of Wales in the far tougher public expenditure conditions that lie ahead.

 

Subject to the Assembly’s approval of the Assembly Government’s Final Budget, a motion to the National Assembly for Wales to approve the local Government finance report for 2011-12 is scheduled for debate on the 15th February.