CEREDIGION and Pembrokeshire are to receive lower than average percentage Welsh Government funding settlements for the next financial year, the lowest such in mid and west Wales.
The Welsh Government has said core revenue funding for local government will increase by 3.1 per cent on a like-for-like basis, compared to the current year, with no local authority receiving less than a two per cent increase.
While the average settlement across the 22 local authorities will see a 3.1 per cent increase, Pembrokeshire will receive 2.5 per cent and Ceredigion 2.6 per cent, ranking them 16th and 14th respectively.
In terms of money, Pembrokeshire will receive an extra £5.372m on top of the £212.626m received for the current financial year.
Ceredigion receives an extra £3.373m, on top of this year’s £129.341m.
Neighbouring local authorities have had a higher percentage increase: Carmarthenshire receives 3.3 per cent, with Powys receiving 2.8 per cent.
The highest rate is Newport, at 4.7 per cent, and the joint two lowest authorities are Gwynedd and Conwy at 2 per cent each.
Awards are made using a formula intended to take account of need and the ability of councils to raise extra funding from the council tax.
Welsh Government finance minister Rebecca Evans said it is providing £5.7bn to councils through the revenue support grant – the main funding source for local government.
This includes funding to limit increases in business rates to no more than five per cent, though rate relief is also being reduced, meaning some business will still see large rises in the amount they must pay.
Ms Evans said the Welsh Government’s overall budget isn’t “sufficient to meet all pressures” but said: “This has meant taking difficult decisions elsewhere in the budget to honour our commitment to councils last year of a 3.1 per cent rise in their funding for next year.
“I appreciate the pressures local government is facing and recognise that demand for services, along with the recent very high rates of inflation, mean local government will still need to make difficult decisions on services, efficiencies, and council tax in setting their budgets.
“We will continue to work closely together to face these shared challenges and strive to make the best use of the resources we have in order to make the most difference to the communities we serve.”
Pembrokeshire County Council and Ceredigion County Council have been contacted for a response to the announcement.
A six-week consultation on the provisional settlement has opened today, which will end on January 31.
