The WLGA and trade unions have jointly expressed disappointment at the UK Government’s Autumn Statement, as councils continue to face a £411m budget shortfall next year for local services which could have devastating impacts on communities.

As was called for by the WLGA, the Local Housing Allowance (LHA) will be restored to the 30th percentile. Also welcomed is the reduction in National Insurance and the uplift in the Real Living Wage. However, councils in Wales will still have to make extremely difficult decisions in relation to service provision due to the funding crisis which is squeezing budgets like never before.

Cllr Andrew Morgan OBE, Leader of the WLGA said:

“We welcome the cut in National Insurance and the uplift in the Real Living Wage announced by the Chancellor today. We’re also grateful to the UK Government for heeding our call for restoring the LHA allowance to the 30th percentile. However, this disappointing Autumn Statement had very little in the way of support for Welsh councils, or to address the £411m budget black hole faced by councils next year alone. Left unfunded, services could be decimated. In such a situation, we would have major concerns for the delivery of essential services and for our brilliant workforce across Wales that carry out vital roles in our communities.

“Local services are on their knees due to rocketing inflation and costs, and soaring demand. Amidst an ongoing cost of living crisis, worsened by rising utility costs, our hard-hit communities need their local services – such as social care, schools, and housing – more than ever before. Support is needed urgently to halt the potential devastating effects for lives and livelihoods.”

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