What assessment has the Cabinet Secretary made of the impact on local authorities across Wales of Wales’s capital budget falling by nearly 4 per cent in real terms by 2029–30, as shown in the UK Government's recent spending review?
Local Authority capital expenditure is funded through un-hypothecated grant, specific capital grant and revenue funded borrowing both supported and unsupported.
As part of the Final budget for 2025-2026 I increased the general capital funding for local government by £20m to £200m and support for decarbonising local authority buildings by £15m to £35m. In addition, over £818m is being provided for Local Government through specific capital grants.
In total Wales will benefit from £5bn extra in revenue and capital over the Spending Review period building on the £1.6bn provided at the Autumn Budget. This will enable us to continue to respond to Welsh priorities and deliver improvements across public services. Future local authority capital funding will be announced as part of the Welsh government’s draft budget later this year.