North Wales MS demands review of “unfair” funding formula disadvantaging Flintshire

North Wales MS Mark Isherwood has called for urgent action to address what he describes as a “fundamentally unfair” funding formula for Welsh local authorities after Flintshire County Council raised concerns about its continued low allocations from the Welsh Government.

Speaking in Tuesday’s Welsh Parliament Business Statement, Mr Isherwood highlighted a letter sent by Flintshire’s council leader to the Local Government Secretary.

The letter revealed that Flintshire would receive an additional £71 million annually if funded at the same per capita level as some neighbouring councils.

Flintshire County Council faces a growing funding gap, which has risen from £38.4 million in September to nearly £47.5 million, despite significant efficiency savings.

The council warns that without additional Welsh Government support, a council tax increase—potentially similar to last year’s nine per cent rise—may be unavoidable.

The deficit is driven by increased employer National Insurance contributions (£4.2m), teacher pension contributions (£3.1m), out-of-county care placements (£1.2m), and other rising costs.

While the UK Government has pledged one-off payments to cover some costs, long-term financial pressures remain unaddressed.

The council is now pushing for a “funding floor”, which would ensure a minimum budget uplift for councils underfunded by the current formula.

Discussions with the Welsh Local Government Association (WLGA) propose a base uplift of five per cent.

[North Wales MS Mark Isherwood]

In the Chamber, Mr Isherwood said:

“I call for a statement from the Local Government Secretary, following the letter sent to her last Thursday by the Leader of Flintshire County Council regarding the Welsh Local Government Provisional Settlement for 2025-26.

The letter states that, ‘If we were to receive the same amount per capita as one of our neighbouring councils, we would receive a staggering additional £71 million per annum. This suggests there are fundamental issues with the current funding formula.’”

He further noted that Flintshire remains “19th out of 22 Welsh councils despite being the 6th largest by population”, adding, “For more than two decades, I’ve been highlighting the unfair financial impact of the Labour Welsh Government’s Local Government Funding Formula on local authorities always left near the bottom, including Flintshire.”

The Welsh Government’s Business Manager, Jane Hutt MS, responded by stating that the provisional Local Government Settlement for 2025-26 includes £6.1 billion in core revenue funding and non-domestic rates for councils across Wales.

This, she said, represents a 4.3 per cent increase compared to the current year.

However, Mr Isherwood countered that Flintshire’s increase is significantly lower, at 3.3 per cent, placing it below the national average once again.

He also noted that four North Wales councils remain among the six authorities receiving the lowest settlements in Wales.

The letter from Flintshire’s council leader reflects local frustration over the perceived inequity of the funding formula.

It echoes feedback from residents who, according to the letter, “want to see fairer Welsh Government funding for Flintshire”.

Mr Isherwood and his Welsh Conservative colleagues have called for a review of the funding formula, arguing that it consistently disadvantages councils in North Wales.