Meetings

NDM8838 Paul Davies (Preseli Pembrokeshire)

To propose that the Senedd:

1. Recognises the crucial role that councils play in delivering local public services and the funding challenges they face.

2. Notes that councils hold over £2 billion in usable reserves.

3. Regrets that the proposed average council tax rise in Wales for 2025-2026 financial year is 7.36 per cent.

4. Calls on the Welsh Government to:

a) commission an independent review of the Welsh local government funding formula;

b) work with councils to use their usable reserves to keep council tax as low as possible;

c) require any council proposing a council tax rise of 5 per cent or more to hold a local referendum and obtain a yes vote before implementing the proposed rise;

d) reduce the bureaucracy of Welsh local government to make it more efficient;

e) coordinate with councils to ensure cross-council working and the sharing of resources and services, along with an increase in digitalisation where possible, to ensure efficient delivery of services and to cut costs; and

f) work with local government to develop a business-like culture to ensure effective use of tax-payer funding, whilst cutting waste and reducing spend on vanity projects.

The following amendments were tabled:

Amendment 1 Heledd Fychan (South Wales Central)

Delete all after point 1 and replace with:

Regrets:

a) that the proposed average council tax rise in Wales for 2025-2026 financial year is 7.36 per cent;

b) the impact of 14 years of austerity under the previous UK Conservative Government on the ability of councils to deliver public services; and

c) that the local government settlement for 2025-26 will leave local authorities having to consider substantial council tax rises and further cuts to public services.

Calls on the Welsh Government to:

a) commission an independent review of the Welsh local government funding formula;

b) make urgent representations to the UK Government regarding the rise to national insurance contributions to reduce the burden on Welsh council finances; and

c) explore the feasibility of introducing a minimum funding floor as part of the local government settlement for 2026-27.

If amendment 1 is agreed, amendment 2 will be de-selected.

Amendment 2 Jane Hutt (Vale of Glamorgan)

Delete points 3 and 4 and replace with:

Notes councils make decisions about council tax based on their local circumstances.

Welcomes the provision of a floor in the local government settlement at 3.8 per cent.

Notes that:

a) councils will receive more than £6 billion through the final local government settlement and £1.3 billion additional specific grants in 2025-26; and

b) local government and the Welsh Government jointly review and develop the funding formula so that it continues to be fit for purpose offering authorities both stability and responsiveness.

The item started at 16.39

Voting on the motion and amendments under this item was deferred until Voting Time.

A vote was taken on the motion without amendment:

NDM8838 Paul Davies (Preseli Pembrokeshire)

To propose that the Senedd:

1. Recognises the crucial role that councils play in delivering local public services and the funding challenges they face.

2. Notes that councils hold over £2 billion in usable reserves.

3. Regrets that the proposed average council tax rise in Wales for 2025-2026 financial year is 7.36 per cent.

4. Calls on the Welsh Government to:

a) commission an independent review of the Welsh local government funding formula;

b) work with councils to use their usable reserves to keep council tax as low as possible;

c) require any council proposing a council tax rise of 5 per cent or more to hold a local referendum and obtain a yes vote before implementing the proposed rise;

d) reduce the bureaucracy of Welsh local government to make it more efficient;

e) coordinate with councils to ensure cross-council working and the sharing of resources and services, along with an increase in digitalisation where possible, to ensure efficient delivery of services and to cut costs; and

f) work with local government to develop a business-like culture to ensure effective use of tax-payer funding, whilst cutting waste and reducing spend on vanity projects.

For	Abstain	Against	Total
14	0	37	51

The motion without amendment was not agreed.

The following amendments were tabled:

Amendment 1 Heledd Fychan (South Wales Central)

Delete all after point 1 and replace with:

Regrets:

a) that the proposed average council tax rise in Wales for 2025-2026 financial year is 7.36 per cent;

b) the impact of 14 years of austerity under the previous UK Conservative Government on the ability of councils to deliver public services; and

c) that the local government settlement for 2025-26 will leave local authorities having to consider substantial council tax rises and further cuts to public services.

Calls on the Welsh Government to:

a) commission an independent review of the Welsh local government funding formula;

b) make urgent representations to the UK Government regarding the rise to national insurance contributions to reduce the burden on Welsh council finances; and

c) explore the feasibility of introducing a minimum funding floor as part of the local government settlement for 2026-27.

A vote was taken on amendment 1:

For	Abstain	Against	Total
11	0	40	51

Amendment 1 was not agreed.

Amendment 2 Jane Hutt (Vale of Glamorgan)

Delete points 3 and 4 and replace with:

Notes councils make decisions about council tax based on their local circumstances.

Welcomes the provision of a floor in the local government settlement at 3.8 per cent.

Notes that:

a) councils will receive more than £6 billion through the final local government settlement and £1.3 billion additional specific grants in 2025-26; and

b) local government and the Welsh Government jointly review and develop the funding formula so that it continues to be fit for purpose offering authorities both stability and responsiveness.

A vote was taken on amendment 2:

For	Abstain	Against	Total
26	0	25	41

Amendment 2 was agreed.

A vote was taken on the motion as amended:

To propose that the Senedd:

1. Recognises the crucial role that councils play in delivering local public services and the funding challenges they face.

2. Notes that councils hold over £2 billion in usable reserves.

3. Notes councils make decisions about council tax based on their local circumstances.

4. Welcomes the provision of a floor in the local government settlement at 3.8 per cent.

5. Notes that:

a) councils will receive more than £6 billion through the final local government settlement and £1.3 billion additional specific grants in 2025-26; and

b) local government and the Welsh Government jointly review and develop the funding formula so that it continues to be fit for purpose offering authorities both stability and responsiveness.

For	Abstain	Against	Total
26	0	25	51

The motion as amended was agreed.