Questions Without Notice from Party Spokespeople

Part of 1. Questions to the Minister for Finance and Local Government – in the Senedd at 1:47 pm on 30 November 2022.

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Photo of Rebecca Evans Rebecca Evans Labour 1:47, 30 November 2022

I understand the question, and to be fair to the Member it is a question that he does raise regularly. I don't share that level of concern at the level of reserves that local authorities have, because I think that, when we're going into what will be the most difficult couple of years for local authorities, for them to be in a better financial position than they would otherwise have been, I think, is a good thing. Part of that is the additional funding that we've provided through the crisis of the pandemic, of course. Also, there will be different things affecting local authorities. The Member will know that there was lots of activity that didn't take place, which had been planned during the pandemic, and that has again led to the rising of some reserves in some authorities. But, he's absolutely correct that levels of reserves are different across different authorities. I don't think that that's a factor of the local government settlement and the formula, however, because the formula looks at a whole range of measures, many of them are related to the nature and the context of the population that is being served and the nature of the geography of the area that is being served, and neither of those things relates to reserves in particular. If local authorities wanted to look at the settlement through the lens of reserves, then, we could ask the distribution sub-group to do some work on that, but it's not something that any authority leader has raised with me at this point.