Welsh councils have been given a ‘good' financial settlement, according to local government secretary Mark Drakeford.
Mr Drakeford said he wanted local authorities to use the next 15 months to ‘think carefully about the future pressures they will face and how they can prepare effectively to manage these pressures’.
The settlement includes revenue funding of £4.1bn - an increase of £10m on 2016/17 – and £433m of capital funding.
Mr Drakeford continued: ‘I am confident the settlement provides councils with a robust basis for their financial planning for the coming financial year.
‘This is a good settlement for local government, particularly given the many competing pressures on the Welsh Budget.’
The settlement also included a £6m funding boost to help tackle homelessness to ‘give local authorities both the means and flexibility to help tackle the issue effectively’.
Communities secretary Carl Sargeant added: ‘This extra funding will help local authorities build on the very positive start they have made in implementing the legislation we introduced last year to help everyone who is homeless or at risk of becoming homelessness.
‘Preventing homelessness helps to protect people’s health and wellbeing, which can, in turn, help to reduce the demand on services such the NHS.’