Schools and social care should be at the front of the queue for any additional funding flowing to Wales following the UK Government’s Spring Statement, council leaders have said.

Spending by the UK Government on education and young people with special education needs and disabilities in England is anticipated to result in as yet unconfirmed Barnett consequential funding for Wales.

Councils warn that without sustained and fair funding, communities will continue to feel the impact through stretched services and less support for preventing issues before they escalate.

One of the most acute pressures highlighted by councils is in education. Around one-third of all council spending in Wales goes on schools, with Additional Learning Needs (ALN) costs rising sharply. ALN spending accounts for more than a quarter of all school budget pressures, with more than 70 per cent of ALN spending going directly to support learners.

Councils say the growing complexity of need, alongside learner transport and workforce costs, is creating unsustainable financial strain.

Councils have reported a £69 million overspend in social care in-year, due to rising demand rising and cases becoming more complex with more than 81,000 people relying on ongoing care and support.

Concerns have also been raised about the future of local economic investment. The UK Shared Prosperity Fund, which replaced EU funding, supported locally delivered projects to create jobs and strengthen communities. Its successor, the Local Growth Fund, comes with a significantly reduced overall allocation. Councils say this could limit support for place-based programmes that help businesses grow and people into work.

Councillor Anthony Hunt, WLGA Spokesperson for Finance, said:

“The Spring Statement presents an opportunity. If additional funding comes to Wales, it must reach the frontline services that people rely on every day, particularly in education and young people with additional learning needs.  
 
“Councils are facing exceptional pressures across the board, but none so great as in social care and education. These are not optional services; they are lifelines for families and vulnerable residents.  
 
“We are offering the next Welsh Government a genuine partnership. The current Welsh Government listened to the concerns of local government in last year’s settlement. My hope is that they do the same here.  
 
“With fair, multi-year funding and a shared focus on prevention, councils can move beyond managing crisis to investing in resilience, growth and better outcomes for people across Wales.”