Critical decisions needed to ensure sustainability of local government in Wales, says Independent Working Group

Thursday, 19 June 2025

An independent group has published a set of interim findings on the future of local government in Wales and is inviting feedback from across the sector. The early proposals focus on how councils can future-proof themselves in the face of rising pressures and increasing demand. 

The Independent Working Group on Sustainable Local Government for the Future – led by the Wales Centre for Public Policy (WCPP) in collaboration with the Welsh Local Government Association (WLGA) – brings together council leaders, chief executives and independent experts. The Group has published an initial position paper exploring the core purpose and key functions of local government in Wales, highlighting some critical choices and trade-offs that will need to be made to ensure the future sustainability of councils can continue to deliver for their communities. 

Some of the key position statements of the working group include: 

The core purpose and value of local government in Wales is local democracy.  
Being ‘close’ to their populations, councils can design and deliver services that are responsive to local contexts. However, due to increased pressures on budgets and resources, local government is struggling to respond to local priorities. This constrains councils’ ability to deliver meaningful change for their communities.  

Without significant further investment, local government in unsustainable in Wales. 
Local government is facing a series of acute pressures. Social services, education and housing dominate local authority spending and cost pressures have risen significantly with inflation and pay increases. The result is that ‘placemaking’ functions that make a real difference to community wellbeing are being squeezed out. 
 
Social care needs to be funded and delivered differently, and integrated better with health, but should remain within the responsibility of local authorities. 
Without significant investment from central government, any changes to local funding and delivery of social care will have minimal changes to outcomes for residents. 
 
Public health responsibilities, currently held by health boards, need to be integrated with local authority decision making.  
Simply giving responsibility for running public health services to councils would likely create issues of scale for some smaller councils due to insufficient resources.  

Councils are uniquely placed to deliver preventative health policies.  
Early intervention and prevention are under-resourced as an increasing proportion of the available resource is focused on addressing acute needs.  
 
As there is no appetite to radically change the functions or fundamental structure of local government in Wales, delivery models must change. 
Some functions need to be delivered differently using new technology and/or through collaborations built on shared priorities.  

The Group has published a survey to gauge the views of local government stakeholders on the positions set out above. 
 
Professor Steve Martin, independent chair of the Working Group said: 

“It is clear from the initial work the Group has done that local authorities urgently need more funding but also to develop new ways to deliver local services if they are to be sustainable in the years ahead. We are asking for feedback on the Group’s initial conclusions to test whether they are shared by the local government family across Wales and so we can start to develop a shared vision for tackling the challenges all councils face”. 
 
Councillor Mary Ann Brocklesby, WLGA Spokesperson for Social Justice and Leader of Monmouthshire County Council, said: 

“We’re grateful for the support we’ve had from both the Welsh and UK Governments, but the reality is that councils are under huge pressure. After years of underinvestment, the whole sector is in a tough spot.  

“This working group brings together experience, innovation and ambition from across the sector to explore new ways of working that can strengthen public services and help us deliver for our communities now and in the years to come. This is an opportunity to work together, think differently, and shape a sustainable future for local government.” 

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