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Revenue Funding

The Welsh Government provides funding to local authorities for pre-16 provision in schools in Wales – whether they are maintained by the authority or are voluntary-aided schools – mainly through the local government revenue settlement in the form of Revenue Support Grant (RSG).
The Welsh Governments distributes RSG to local authorities using a commonly agreed formula.  Local authorities are responsible for deciding how they spend their allocation of RSG on the services for which they are responsible, which includes schools.  The underlying principle of the local government settlement is that funding is not earmarked for particular services.  The Welsh Assembly Government does not set targets for local authority expenditure on schools.
 
Authorities are required to distribute funding to schools in the form of an annual delegated budget.  Schools decide how to spend their budget.