Steve Martin argues why we need urgent action to secure the future of local government in Wales.
Local government is the heartbeat of communities throughout Wales. But our current model is unsustainable. Budget constraints, cost inflation and increasing levels of need have made it harder and harder for councils to deliver key services – but at the same time those services have become more important than ever to the individuals and households who rely on them most.
Over the last year, an Independent working group on sustainable local government for the future, comprising local authority leaders and chief executives and convened by the Wales Centre for Public Policy (WCPP) with the support of the Welsh Local Government Association, has been examining what can be done to break this downward spiral.
An ageing population and near stagnant economy, combined with high levels of UK Government debt, mean that it would be daft for anyone to expect the next Welsh Government to be able to throw councils a financial lifeline.
The challenges facing councils will be all too familiar to those who have worked in or with them. Though protected from the deep cuts imposed on their English counterparts, local authority budgets in Wales came under sustained pressure throughout the decade of austerity. More recently, councils have had to cope with cost pressures resulting from inflation, pay increases and the rise in employers’ national insurance. Meanwhile, growing demand for statutory functions such as social care, education and housing and homelessness provision, which now gobble up more than two-thirds of local authorities’ funding, has squeezed out spending on more visible but non-statutory services that enhance the local environment and improve long-term wellbeing.
An ageing population and near stagnant economy, combined with high levels of UK Government debt, mean that it would be daft for anyone to expect the next Welsh Government to be able to throw councils a financial lifeline. Some commentators have argued that we should therefore free local government from responsibility for social care before we reach the point where there’s simply nothing left for any other services. But there is no evidence that handing social care over to the health service or a national care service would improve outcomes for vulnerable users. Another (well-worn) option would be local government reorganisation. I’ve not met anyone who believes that Wales really needs twenty-two councils. But we’ve been around this argument several times over the last twenty years and there’s nothing to suggest that the politics or processes of local government reform would be easier now than when it was proposed by Sir Paul Williams’ commission a decade ago. Nor is there any clear evidence that larger councils would be more efficient or better able to deal with the mismatch between the demands we put on local government and the funding we give it.
Syniadau uchelgeisiol, awdurdodol a mentrus.
Ymunwch â ni i gyfrannu at wneud Cymru gwell.
But there are a range positive steps that we can, and should, take. Drawing on analysis from external experts, the independent working group convened by the WCPP is calling on the next Welsh Government to act quickly and decisively to fix the foundations of local government. It argues for a clear agreement on the future purpose and functions of local authorities combined with action to:
- Increase councils’ financial resilience and autonomy
- Streamline and strengthen local government accountability
- Develop a workforce strategy and plug skills gaps
- Invest in a coordinated, sector-led effort to develop, test and implement innovative ways to deliver key services
Local government in Wales isn’t about to fold. But neither can it carry on like it has been. The working group offers some concrete actions that the next Welsh Government could take. But it’s not just what you do that matters, it’s the way that you do it that is often the key to success, and recent history provides some important pointers which incoming ministers might want to keep in mind.
We know that it would be counterproductive to try to force change from the top-down. Nor should incoming ministers wash their hands of the challenges and leave local government to work out its own salvation. A vision for a more sustainable future has to be developed in consultation with councils, but the Welsh Government has a key role to play because there are things which only it can bring to the table, because it holds the purse-strings; sets the legislative framework that local government operates within; and still has significant convening power. Ministers should think carefully about how and when they want to pull on these important levers.
Local government in Wales isn’t about to fold. But neither can it carry on like it has been.
It would also be great if the next Welsh Government can set a course for local government for at least the next four years and stick with it. Let’s decide now what we expect of local authorities and how we can fund them properly and sustainably. Let’s work out how we are going to rebuild local government’s capacity to innovate. Let’s invest in the leaders, culture and workforce we need to make the most of new opportunities presented by new opportunities like AI-assisted service design and delivery. And crucially, we need to work out how to re-establish trust with citizens and service users and ensure they really can hold local government to account.
Gofod i drafod, dadlau, ac ymchwilio.
Cefnogwch brif felin drafod annibynnol Cymru.
A final thought. With local elections following hard on the heels of the Senedd election, we could see profound changes in the local government landscape in just twelve months’ time. The incoming Welsh Government might, therefore, want to start working with local government leaders now to begin to chart the way forward. Some of the challenges facing councils require long-term solutions. In particular fixing social care needs a fundamental change of approach and significant additional resources. But the working group has highlighted several actions which could be implemented quite quickly and would make an important difference within months rather than years. A newly minted Senedd, whatever its political make up, offers the opportunity for fresh thinking and bold action to tackle the longstanding challenges facing local government. It would be a pity to waste this.
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