FUNDING awards for Gwent councils have received a cautious welcome from local leaders – except in Blaenau Gwent.

Local authorities across Wales learned this week learned how much money they can expect to receive from the Welsh Government to fund services, from schools to rubbish collections, from April next year.

But while the leaders of Torfaen and Monmouthshire councils welcomed the draft funding settlements, the announcement was greeted with “disappointment” in Blaenau Gwent.

The council has finished bottom of the funding pile, with the smallest percentage increase on last year’s award, of any of the 22 councils in Wales.

Its core revenue funding will increase by just £8.5 million, or 6.5 per cent, at the same time the Labour Welsh Government is increasing the budget for local councils by 7.9 per cent.

Councillor Steve Thomas, the Labour leader of Blaenau Gwent, hit out at the amount allocated to his authority – which he said will mean it will have to axe some services it will no longer be able to afford.

He said: “It is disappointing that Blaenau Gwent’s settlement of 6.5 per cent is significantly below the Welsh average of 7.9 per cent; this means that we will have very tough decisions to set a balanced budget for 2023/24. These decisions mean that there will be changes to the services valued by our residents, with some services needing to be reduced or stopped altogether.”

The councillor said though the funding is better than what the council had been anticipating, as it planned for a £16 million shortfall, it still faces a “massive funding gap” due to rising inflation, pay awards and soaring energy and fuel costs.

In Torfaen, which is set for a £12 million uplift in funding having already warned it faces a £12.5 million shortfall between expected costs and revenue next year, the cabinet member responsible for resources said today’s announcement had given it “a fighting chance”.

Cllr Sue Morgan said finance officers are still working through the detail of the council’s provisional award and what it will mean for services, with the authority having already agreed that its council tax increase will be limited to 1.95 per cent.

The Labour councillor said: “Our new County Plan focuses our resources on improving the wellbeing of residents by tackling inequalities and addressing the environmental challenges we face. This settlement gives us a fighting chance and will be considered in more detail by cabinet and councillors in January.”

Monmouthshire will see the biggest percentage increase in its funding, of all 22 unitary authorities in Wales, with its financial settlement increasing by 9.3 per cent, which is above the 7.9 per cent raise in core funding for local government.

Powys County Council is set to receive an 8.7 per cent increase in funding from the Welsh Government for the 2023-2024 financial year.

This equates to an increase of just under £18.3million and will see the council’s funding rise from £210.090 million this year to £228.388 million for next year.

On Wednesday, December 14 the Welsh Government announced its provisional local government settlement.

This authority has also climbed a place from sixth to fifth in the Wales local authority table – having languished in the basement for several years.

The settlement is above the 7.9 per cent average increase for local authorities.

Social care, education and other key services provided by local authorities have been given £5.5 billion in Welsh Government Revenue Support Grant and non-domestic rates.

Welsh Government minister for Finance and Local Government, Rebecca Evans said: “This settlement builds on improved allocations in recent years and provides local authorities with a stable platform on which to plan their budgets for the coming financial year and beyond.

“When I announced our budget I prioritised the protection of frontline public services, and this increased funding to councils – who deliver so many of these services – is a vital part of that.’

“I recognise however that inflationary pressures being faced by services mean that local authorities will still need to make difficult decisions in setting their budgets.

“We will continue to work closely with local government to meet the shared challenges we face and deliver services to benefit the people of Wales.”

The Welsh Government started a seven-week consultation on the provisional settlement, which will end on February 2, 2023.

It is expected that Powys will set its budget including the level of Council Tax which is added to the government funding, in late February or early March.