Councils in Wales have warned ‘difficult decisions’ on spending remain despite receiving an 8% increase in funding from the Welsh Government.
Minister for finance and local government, Rebecca Evans, announced an increase in the provisional local government settlement for 2023-24 worth £400m.
But the Welsh Local Government Association (WLGA) said the £5.5bn authorities will receive in Revenue Support Grant and non-domestic rates would cover just over half of the pressures its members will face in the next financial year.
WLGA leader Andrew Morgan said: ‘The economic outlook remains bleak, which means councils will still have to take difficult decisions to meet spiralling budget gaps due to energy bills, inflation and pay costs.’
Ms Evans said the settlement would ‘provide local authorities with a stable platform’.
She added: ‘I recognise that inflationary pressures being faced by services mean local authorities will still need to make difficult decisions in setting their budgets.’
