Welsh councils have responded to today’s Spending Review by warning that sustained investment in local services remains essential to delivering economic growth and supporting communities.
In a letter to the Chancellor and Chief Secretary ahead of the review, the WLGA’s political group leaders and Finance Spokesperson urged the UK Government to recognise the central role of local services in delivering growth — from schools and social care to business support and transport — and to provide the funding and flexibility needed to secure their future.
While the UK Government’s announcements included significant investment in English regional transport, Welsh local government leaders are calling for fair investment in Wales’ rail infrastructure and full Barnett consequentials from major capital projects. Local council spending on roads and bus services has declined in real terms for over a decade, restricting people’s access to work, education, and services.
Councils have also welcomed progress on simplifying and integrating funding streams across the UK and continue to back greater fiscal flexibility for the Welsh Government, particularly around borrowing and reserves. Leaders argue that multi-year funding and fewer competitive funding pots are vital to enable long-term investment planning and to maintain essential local services.
They have also welcomed confirmation that funding levels for interventions including community cohesion, regeneration and improving the public realm are expected to remain the same in cash terms as under the Shared Prosperity Fund in 2025/26, although noting that, despite pre-Brexit commitments, these are significantly lower than received under previous EU programmes. Council Leaders will now need to work through the detail with UK Government and Welsh Government, and are keen to engage with both governments as soon as possible.
The UK Government also announced £118 million of funding will be provided over three years to support coal tip safety in Wales — a commitment that has been welcomed by councils as an important step in addressing this long-standing legacy.
Despite the government’s infrastructure investment plans, WLGA warns that capital spending alone cannot substitute for the core revenue funding that councils rely on to run everyday services.
Councillor Anthony Hunt, WLGA Finance Spokesperson, said:
“It’s good to see this Spending Review include real investment in things that matter to people — like rail infrastructure, which helps connect communities and create new opportunities. With the right support in place, councils in Wales can do even more to deliver the services people rely on and help drive local growth.
“We also welcome the move towards longer-term and more flexible funding. That gives councils the certainty we need to plan ahead and make the most of every pound.”
“We welcome the signs of a more collaborative approach and the recognition of the importance of public services. Last year’s UK and Welsh Government budgets made a real difference for local services, from schools to social care and environmental services. We want to continue that positive direction by working in partnership with both governments to turn shared priorities into tangible outcomes for people across Wales.”
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