Members of Bridgend County Borough Council have called for urgent clarity from the new Plaid Cymru-led Welsh Government regarding its plans to review the funding formula for local government in Wales. The motion, raised at a full council meeting in June, underscores concerns that any changes could have major implications for local authorities like Bridgend.
Background of the Funding Formula Review
The new Welsh Government, led by Plaid Cymru, announced it would examine the funding formula as part of its 2026 manifesto. The stated goal is to ensure the formula “better reflects the real cost of delivering services in different parts of Wales and introduce a funding floor to ensure that no local authority is disadvantaged.”
Labour councillor Jon Paul Blundell initiated the discussion, emphasizing that any reforms must be fair, transparent, and not disadvantage communities within Bridgend county borough. He proposed a motion to write to the Welsh Government seeking urgent clarification on the detail, scope, and proposed implementation of any reforms, along with assurances they would not have a detrimental impact on residents. The motion also requested that the council be fully consulted before any changes are implemented.
Support and Counterarguments
Cllr Ross Penhale-Thomas supported the motion but noted a sense of irony in seeking urgent clarification from a government elected only weeks ago, while the previous Labour administration had held power for over 25 years. He proposed an amendment recognizing how local resources are shaped by UK Government funding arrangements and called for continued reform of the Barnett Formula to ensure Wales receives a fair, needs-based level of funding.
The Barnett Formula is used by the UK Treasury to calculate annual block grants for the Welsh, Scottish, and Northern Irish governments. Cllr Blundell rejected the amendment, stating his motion was focused on the immediate reforms proposed by the Welsh Government, but he agreed to work with Cllr Penhale-Thomas on a separate future motion regarding the Barnett Formula.
Cllr Tim Thomas expressed disappointment at the rejection, arguing it would be more economical to include the amendment in the current motion to save time. The amendment was later voted down, and the original motion was passed unanimously.
Implications for Bridgend
Council leaders stress that any changes to the funding formula could significantly affect Bridgend’s ability to deliver services. The call for clarity reflects broader concerns among Welsh local authorities about the potential impact of the review. The council now awaits a response from the Welsh Government, which has been asked to provide detailed information and assurances before any reforms are enacted.
