GUEST COLUMN:
Baroness Debbie Wilcox
The Baroness Wilcox of Newport
The start of 2025 has brought welcome news for local authorities in Wales. After more than a decade of austerity, the draft budget announced by the Welsh Government, supported by funding from Westminster, offers some much-needed breathing space.
As a former leader of Newport City Council and the Welsh Local Government Association, I cannot emphasise enough how significant a 5.4% uplift is.
During my time in local government, funding was relentlessly tight. Education and social services would consume around 75% of Newport’s budget, leaving the remaining 25% to cover everything else. That “everything else” was far from trivial – it included essential services like maintaining roads, supporting leisure centres, and providing cultural amenities. The choices were stark.
Statutory services had to be prioritised by law. Schools needed funding for teacher salaries, building repairs, and resources. Social services, too, demanded significant investment, covering both adult and children’s care. Once these obligations were met, what remained was minimal, forcing councils to cut into non-statutory services year after year.
We called it “salami slicing,” but each year the slices grew thinner, and the decisions harder. I vividly remember the debate over school crossing patrol officers – an essential service for safety but, at the time, one of the few discretionary services left to cut. It felt like Damocles’ sword was constantly hanging over us, knowing that every cut had a direct impact on people’s lives.
This year, the landscape looks a little brighter. The combined efforts of the governments in Cardiff Bay and Westminster have resulted in approximately £1.5 billion coming to Wales. For the first time in years, there’s money not only for revenue but also for capital projects. That’s a crucial distinction, as it enables much-needed investment in infrastructure alongside maintaining day-to-day services.
However, while this year’s budget is a relief, we must recognise that it only begins to address the 14 years of damage inflicted by austerity. The erosion of vital services cannot be reversed overnight. Youth services, for instance, suffered deeply. I had to make the heart-wrenching decision to close youth centres in Newport – not out of choice, but necessity. Rebuilding those services requires not just funding but a sustained, multi-year commitment.
The pressure on public services in Wales remains acute. We are a nation with an aging, often unwell population, rooted in post-industrial challenges. Nearly two-thirds of our population regularly interact with the NHS, highlighting the immense strain on healthcare. Years of underfunding have left scars that even a significant injection of funding cannot immediately heal.
This year’s uplift is an important step, but it must not be seen as a solution in itself. Long-term growth and sustainability are crucial. Councils need certainty to plan effectively, invest strategically, and avoid falling back into cycles of cuts and firefighting.
I take my hat off to those still in local government. Even with this year’s improvements, the decisions they face remain tough. They must balance the immediate needs of their communities with the necessity of ensuring financial resilience for the future.
Looking ahead, sustained funding will be key. Without it, we risk repeating the mistakes of the past and losing the progress we are beginning to make. After 14 years of relentless cuts, rebuilding requires consistency and collaboration. We have been battered, but with determination and sustained support, we can begin to redress the balance and move forward.
This year offers a glimmer of hope for local authorities across Wales. Let’s ensure that it’s the start of something lasting, not a fleeting reprieve.
