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Written Statement - Final Local Government Revenue and Capital Settlements 2012-13

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Carl Sargeant, Minister for Local Government and Communities

Today I am announcing the details of the final revenue and capital settlements for the 22 unitary authorities in Wales for 2012-13.

The Overall Settlement

In preparing the final settlement I have given careful consideration to the responses I received through the consultation on the provisional settlement. 

Next year, after accounting for transfers, local authorities in Wales will receive an increase of 0.24% on the previous year’s revenue settlement. This is unchanged from the provisional settlement announcement I made on 18 October 2011.

Included in the final settlement are a further two specific grants in line with our commitment to reduce the amount of hypothecated funding provided outside the Revenue Support Grant. These are Deprivation of Liberty safeguards funding and mental health act funding amounting to £718 thousand.

Recognising the case for reducing the ringfencing of specific grants I had proposed to include the £32 million currently provided through the Learning Disabilities Resettlement Grant in the settlement for 2012-13. Regretfully local government was not able to agree collectively on the arrangements for transferring this into the settlement hence it will be subject to further consideration with a view to including it in the 2013-14 settlement.

Specific Revenue Grants

I am also providing local authorities with details of the total Wales specific grants they can expect to receive in 2012-13. Revenue Support Grant and Specific Grants taken together will provide authorities with a comprehensive picture of the funding the Assembly Government will provide in 2012-13, to allow them to budget effectively. In addition to funding authorities will receive through the settlement, they will also receive over £700 million in specific grants. Included within this are major grants for areas such as Concessionary Fares; Sustainable Waste Management; Foundation Phase and Supporting People.

Distribution between Authorities

Capital Settlement

With regard to the capital settlement, the capital allocation for 2012-13, including specific capital grants will be £424 million unchanged on the provisional settlement figure.

The General Capital Fund totals some £161 million. This is unhypothecated capital funding of which £54 million is paid as capital grant, the remainder, some £107 million, is provided as support for borrowing.

Further detailed tables will be made available on the Welsh Government’s internet site.

A motion to the National Assembly for Wales to approve the local government finance report for 2012-13 is scheduled for debate on the 10 January.