31 October 2003
Welsh local authorities are to receive a 5% increase in their general support grant to help with the delivery of frontline services.
Welsh Finance and Local Government Minister Sue Essex said the increase would ensure councils were properly resourced.
'In addition to the £3.2bn in revenue support, there will be a wide range of special grants providing substantial additional funding to address key areas of provision, including carers, supporting people with disabilities, schools, waste management and transport,' she said.
These grants include £20m for the most deprived areas and £30m for performance incentives. Capital projects will receive £526m.
Essex said she trusted councils to make their own decisions. 'Approximately 80% of our funding to local government is not ring-fenced – local authorities are able to judge local needs and plan their budgets,' she added.
But despite the overall increase of 5%, some authorities are receiving less than 4%.
The Welsh Local Government Association has warned that with less than 5%, councils would struggle to fund existing commitments.
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