Local government “unsustainable” in Wales without significant further investment, working group warns

The Independent Working Group on Sustainable Local Government for the Future – led by the Wales Centre for Public Policy in collaboration with the Welsh Local Government Association (WLGA) has published an initial paper exploring the key functions of local government in Wales, highlighting some “critical choices and trade-offs” that will need to be made to ensure councils can continue to deliver for their communities. 

Among other interim findings, the working group warns that without “significant” further investment, local government is “unsustainable” in Wales. 

It notes: “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.”

The working group observes that 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.

It warns: “This constrains councils’ ability to deliver meaningful change for their communities.”  

On social care, the paper recommends the service is better integrated with health, while remaining within the responsibility of local authorities.

However, it notes that without significant investment from central government, any changes to local funding and delivery of social care will have “minimal” changes to outcomes for residents. 

Meanwhile, the working group describes councils as “uniquely placed” to deliver preventative health policies, observing that early intervention and prevention are currently under-resourced, as an increasing proportion of the available resource is focused on addressing acute needs.  

Finally, the paper recommends some local government functions be delivered differently using new technology and/or through “collaborations built on shared priorities”.  

It claims: “As there is no appetite to radically change the functions or fundamental structure of local government in Wales, delivery models must change.”

The working group has published a survey to invite feedback from the sector on its initial findings.

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”. 

Cllr Mary Ann Brocklesby, WLGA Spokesperson for Social Justice 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.” 

A Welsh Government spokesperson said: “We welcome the work by local government leaders to consider future sustainability. 

“A landmark agreement was recently signed between the Welsh Government and Local Government in Wales which pledges joint working and a commitment to tackling shared challenges, such as those outlined in the report.

“By working together, we can deliver better outcomes for communities across Wales.”

Lottie Winson