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Written Statement - Final Local Government Settlement 2016-17

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Leighton Andrews, Minister for Public Services

Today I am publishing details of the Final Local Government Settlement for 2016-17, including allocations of core funding for individual Local Authorities.

In preparing the Final Settlement, I have given careful consideration to the responses I received to the consultation on the Provisional Settlement.  I am confident it provides a robust basis for Local Authority financial planning for the coming financial year.

I am publishing the Final Local Government Revenue and Capital Settlements for 2016-17 the day after the announcement of the Welsh Government’s Final Budget.  This is the earliest opportunity which is possible in the circumstances.  

For next year, I am setting Local Government revenue funding at £4.102 billion.  This is unchanged from the position I announced in the updated Provisional Settlement on 10 February following the announcement by the Minister for Finance and Government Business of £2.5 million of top-up funding.

The total represents a decrease of 1.3 per cent (£54 million) compared with 2015-16, after adjusting for transfers.

Whilst the unhypothecated Settlement is the largest single source of funding available to Authorities, it is not the only one.  Authorities must take account of all the income streams available to them in setting their budgets and making decisions about service provision for 2016-17.

Alongside the Settlement, I am publishing the latest information on Welsh Government grant schemes planned for 2016-17.  This provides Local Authorities with a detailed picture of the funding from the Welsh Government for 2016-17, allowing them to budget effectively.  

Table 1 sets out the final distribution of Aggregate External Finance between the 22 Authorities for 2016-17.  

In line with the Welsh Government Final Budget, I am unable to provide indications beyond 2016-17.

The motion for the National Assembly for Wales to approve the Local Government Finance Report for 2016-17 is scheduled for debate on 9 March 2016.