Thank you for the opportunity to debate on budget preparations for the next financial year or so. This is a timely debate, and obviously an extremely important one as we come out from the COVID-19 pandemic, and I would like to turn my contribution to local government, and the role and opportunity of properly supporting councils. But at this point, I remind Members of my interest as an elected member of Conwy County Borough Council as well.
Throughout this pandemic, councils have worked incredibly hard, and their efforts have been exceptional. The last year and a half has shown that councils are often best placed to decide what is best for their area. People know who their local councillors are, and have a personal connection with that local democracy as well. As such, it's vitally important that they have the finances to deliver on local priorities. Councils in Wales, as we know, have faced substantial pressures during the pandemic, and some of the most recent information shows that Welsh councils have so far reported financial losses of hundreds of millions of pounds through loss of income and additional expenditure. I certainly acknowledge the significant support that Government has provided to councils through this time, but these losses will have a significant impact on future council budgets, leading to increased budgetary pressures, not just now, but in the future, too. The latest report from Wales Fiscal Analysis showed that unfinanced pressures in councils next year could be over £400 million, and this needs to be properly acknowledged and supported through budgetary decisions so that councils can deliver on those local priorities.494
So, from delivering local services to supporting vulnerable people and delivering business support, councils have shown what they can do when they are properly funded and supported, and this can often be done while providing value for money and clear local accountability. In terms of value for money, we know that local spending by local authorities does provide that value for money. Local government can often work more closely and better with local suppliers, and reports have even shown that, for every £1 spent with a local supplier, it's worth about £1.76 to the local economy, but only 36p if it's spent out of the local area. That makes every £1 spent locally worth around 400 per cent more to the local economy, so it provides really good value for money in the local areas.
Finally, the work and planning of councils can be further strengthened through the delivery of realistic, multi-year settlements for those councils, and this would give longer term financial certainty to support the delivery of vital services. Furthermore, as I've already said in the Chamber many times, now is the time to devolve more powers to councils and bring that power closer to people, which would be welcomed along with that proper financial support. So, to conclude, Llywydd, from my side, now is the time for this Welsh Government budget in the planning for next year to allow councils to flourish through more certainty of funding, and to empower local decision making through those levels of funding that reflect the value that councils have in our nation. Diolch yn fawr iawn.
Diolch am y cyfle i drafod paratoadau o ran y gyllideb ar gyfer y flwyddyn ariannol nesaf fwy neu lai. Mae hon yn ddadl amserol, ac mae'n amlwg yn un eithriadol o bwysig wrth i ni ddod allan o bandemig COVID-19, a hoffwn i droi fy nghyfraniad at lywodraeth leol, a'r swyddogaeth a'r chyfle i gefnogi cynghorau yn briodol. Ond ar yr adeg hon, rwy'n atgoffa'r Aelodau o'm diddordeb fel aelod etholedig o Gyngor Bwrdeistref Sirol Conwy hefyd.
Drwy gydol y pandemig hwn, mae cynghorau wedi gweithio yn anhygoel o galed, ac mae eu hymdrechion wedi bod yn eithriadol. Mae'r flwyddyn a hanner diwethaf wedi dangos mai cynghorau sydd yn y sefyllfa orau yn aml i benderfynu yr hyn sydd orau i'w hardal. Mae pobl yn gwybod pwy yw eu cynghorwyr lleol, ac mae ganddyn nhw gysylltiad personol â'r ddemocratiaeth leol honno hefyd. Fel y cyfryw, mae'n hanfodol bwysig bod ganddyn nhw'r arian i gyflawni blaenoriaethau lleol. Mae cynghorau yng Nghymru, fel y gwyddom ni, wedi wynebu pwysau sylweddol yn ystod y pandemig, ac mae rhywfaint o'r wybodaeth ddiweddaraf yn dangos bod cynghorau Cymru hyd yma, wedi adrodd am golledion ariannol o gannoedd o filiynau o bunnoedd drwy golli incwm a gwariant ychwanegol. Rwyf i'n sicr yn cydnabod y gefnogaeth sylweddol y mae'r Llywodraeth wedi ei rhoi i gynghorau drwy gydol y cyfnod hwn, ond bydd y colledion hyn yn cael effaith sylweddol ar gyllidebau cynghorau yn y dyfodol, gan arwain at bwysau cyllidebol cynyddol, nid yn unig nawr, ond yn y dyfodol hefyd. Dangosodd yr adroddiad diweddaraf gan Ddadansoddi Cyllid Cymru y gallai pwysau pethau heb eu cyllido mewn cynghorau y flwyddyn nesaf fod dros £400 miliwn, ac mae angen cydnabod a chefnogi hyn yn briodol drwy benderfyniadau cyllidebol fel y gall cynghorau gyflawni y blaenoriaethau lleol hynny.
Felly, o ddarparu gwasanaethau lleol i gefnogi pobl sy'n agored i niwed a darparu cymorth busnes, mae cynghorau wedi dangos yr hyn y gallan nhw ei wneud pan gânt eu hariannu a'u cefnogi yn briodol, ac yn aml mae modd gwneud hyn gan darparu gwerth am arian ac atebolrwydd lleol clir. O ran gwerth am arian, rydym ni'n gwybod bod gwariant lleol gan awdurdodau lleol yn darparu'r gwerth hwnnw am arian. Yn aml, gall llywodraeth leol weithio'n agosach ac yn well gyda chyflenwyr lleol, ac mae adroddiadau hyd yn oed wedi dangos, ar gyfer pob £1 sy'n cael ei gwario gyda chyflenwr lleol, bod hynny werth tua £1.76 i'r economi leol, ond dim ond 36c os caiff ei wario y tu allan i'r ardal leol. Mae hynny'n gwneud pob £1 werth tua 400 y cant yn fwy yn lleol i'r economi leol, felly mae'n rhoi gwerth da iawn am arian yn yr ardaloedd lleol.
Yn olaf, mae modd cryfhau mwy ar brosesau gwaith a chynllunio cynghorau drwy ddarparu setliadau realistig, amlflwydd i'r cynghorau hynny, a byddai hyn yn rhoi sicrwydd ariannol tymor hir i gefnogi'r gwaith o ddarparu gwasanaethau hanfodol. Hefyd, fel y dywedais i eisoes yn y Siambr droeon, dyma'r amser i ddatganoli mwy o bwerau i gynghorau a dod â'r pŵer hwnnw yn nes at bobl, a fyddai'n cael ei groesawu ynghyd â'r cymorth ariannol priodol hwnnw. Felly, i gloi, Llywydd, o'm hochr i, dyma'r amser i'r gyllideb hon gan Lywodraeth Cymru wrth gynllunio ar gyfer y flwyddyn nesaf ganiatáu i gynghorau ffynnu drwy fwy o sicrwydd o ran cyllid, ac i rymuso penderfyniadau lleol drwy'r lefelau ariannu hynny sy'n adlewyrchu'r gwerth sydd gan gynghorau yn ein gwlad. Diolch yn fawr iawn.
