Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment she made has made of the potential impact of providing compensation to local authorities in Wales via the Barnett Formula on the adequacy of funding to cover the additional Employer National Insurance costs announced at the Autumn Budget 2024 incurred by Local Authorities in Wales.

At Autumn Budget 2024, the Chancellor agreed to provide funding to the public sector to support with the changes to employer National Insurance.

The devolved governments received funding through the Barnett formula in 2025-26, including on this support. This is the normal operation of the funding arrangements as set out in the Statement of Funding Policy.

The current Welsh Government Spending Review settlement is the largest settlement in real terms of any since devolution.