Welsh local government spending: some deep cuts done, but much more to come

Spending by Welsh unitary authorities (UAs) is set to be 8.0% lower per person this year than in 2009-10 in real terms. Despite this significant cut the majority of the cuts implied by Government spending plans are still to come. Even if the UK Government’s fiscal repair job is completed by 2016-17 as planned, and public spending then grows in line with the official forecasts for long-term economic growth, the spending power of Wales' UAs per person in 2020-21 looks likely to be below its current level in real terms, let alone the level enjoyed in 2009-10 prior to the current austerity drive commencing.

These are amongst the findings of a new report by IFS researchers, Local Government Expenditure in Wales: Recent Trends and Future Pressures, funded by the Welsh Local Government Association, and launched today at their 2012 Finance Conference in Cardiff.