Schools and social care should be at front of queue for additional funding flowing to Wales following Spring Statement, say councils

The Welsh Local Government Association (WLGA) noted that spending by the UK Government on education and young people with special education needs and disabilities in England is anticipated to result in “as yet unconfirmed” Barnett consequential funding for Wales.

Barnett consequential funding refers to the additional funding allocated to the Scottish Government, Welsh Government, and Northern Ireland Executive automatically when the UK Government increases spending on public services in England that are devolved.

The WLGA noted that one of the most acute pressures highlighted by councils is in education.

It said: “Around one-third of all council spending in Wales goes on schools, with Additional Learning Needs (ALN) costs rising sharply. ALN spending accounts for more than a quarter of all school budget pressures, with more than 70 per cent of ALN spending going directly to support learners.”

According to the Association, councils say that the growing complexity of need, alongside learner transport and workforce costs, is creating “unsustainable financial strain”.

For instance, councils reported a £69 million overspend in social care in-year, due to rising demand rising and cases becoming more complex, with more than 81,000 people relying on ongoing care and support.

Concerns were also raised about the future of local economic investment.

The WLGA said: “The UK Shared Prosperity Fund, which replaced EU funding, supported locally delivered projects to create jobs and strengthen communities. Its successor, the Local Growth Fund, comes with a significantly reduced overall allocation. Councils say this could limit support for place-based programmes that help businesses grow and people into work.”

Cllr Anthony Hunt, WLGA Spokesperson for Finance, said: “The Spring Statement presents an opportunity. If additional funding comes to Wales, it must reach the frontline services that people rely on every day, particularly in education and young people with additional learning needs.

“Councils are facing exceptional pressures across the board, but none so great as in social care and education. These are not optional services; they are lifelines for families and vulnerable residents. 

“We are offering the next Welsh Government a genuine partnership. The current Welsh Government listened to the concerns of local government in last year’s settlement. My hope is that they do the same here. 

“With fair, multi-year funding and a shared focus on prevention, councils can move beyond managing crisis to investing in resilience, growth and better outcomes for people across Wales.”

A spokesperson for HM Treasury said: "The Welsh Government will receive an additional £555 million as a result of decisions at Spring Forecast. It is for the Welsh Government to allocate this funding across its devolved priorities as it sees fit, including local government."

Lottie Winson

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