Council funding boost miserly - Welsh Tory leader

Darren Millar was elected unopposed as the new leader of the Tories in the Welsh Parliament earlier this month

Rural councils are disproportionately impacted by the Welsh government's draft budget, according to the Welsh Conservatives.

Darren Millar, the party's leader in the Senedd, told BBC Politics Wales the 4.3% increase in funding for local government was "miserly".

The Welsh Local Government Association (WLGA), which represents councils, had been asking for funding to plug a £559m hole in 2025-6, projected to increase to over £1bn over two years.

First Minister Eluned Morgan said the uplift was on top of a "massive chunk of money" councils had already been given this year and, therefore, they had had "significantly more" than 4.3% over two years.

Both Conservatives and Plaid Cymru have raised concerns about National Insurance contributions for public service providers like care homes, GP surgeries and hospices, with the Welsh Conservatives claiming "hundreds of millions" may go back to the Treasury.

Plaid Cymru's Heledd Fychan said: "If you listen to the WLGA prior to the budget, they wanted double that funding.

"That was the message quite clearly. 7% was the figure needed in terms of those vital public services.

"And the fact that we have that lack of clarity in terms of National Insurance contributions is a huge concern to local authorities across Wales."

Plaid Cymru's Heledd Fychan says changes to National Insurance contributions are a "huge concern" to councils

On Tuesday, Finance Minister Mark Drakeford delivered the Welsh government's draft budget which saw every department get a funding boost, including £600m extra for NHS Wales.

The Welsh government will boost council budgets by £253m next year if its budget plans are approved - less than half of what the sector said it needs to plug gaps caused by increased demand and costs.

Opposition parties have said funding for councils was not enough.

'Welsh winter fuel allowance'

Millar said the Welsh government had their priorities wrong and called for the establishment of a Welsh winter fuel allowance for pensioners.

It follows the UK Labour government's controversial decision to means test payments to help with the cost of fuel over the winter.

He went on to say that one of the "challenges that councils face is they use an out-dated funding formula... so rural councils in particular have been hit really hard this year.

"They're getting a disproportionally lower increase in funding compared to cities like Newport and Cardiff."

Fychan questioned whether there would be cuts in future as the funding increased from the UK government were "front loaded".

She said the future looked "bleak" for public services and cuts were "inevitable" in years to come.

• Watch the full interview with First Minister Eluned Morgan and reaction from opposition parties on BBC Politics Wales on iPlayer