Introduction

1. The Welsh Local Government Association (WLGA) represents the 22 local authorities in Wales. The three national park authorities and the three fire and rescue authorities are associate members. 

2. It seeks to provide representation to local authorities within an emerging policy framework that satisfies priorities of our members and delivers a broad range of services that add value to Welsh Local Government and the communities they serve.

3. The WLGA is pleased to be able to respond to the Committee’s Inquiry into Welsh Government’s Capital Funding Sources and the Committee Clerk has asked us to specifically comment on the Mutual Investment Model (MIM).   We have consulted the Society of Welsh Treasurers and the Association of Directors of Education in Wales as part of our response.  Individual local authorities may submit their own responses reflecting their own views.

Overview of capital funding and spending for local government

4. We would refer the committee to evidence submitted to a previous inquiry launched by in 2012 around capital funding.  One point we repeatedly make is that local government enjoys considerable freedoms to borrow and more could be made of this to fund local infrastructure.