£1.6 billion of additional funding would be needed to meet budget pressures for local authorities over the next three years, the Senedd has heard.

Labour’s spokesperson for local government, Mike Hedges, told Senedd members on 17 June that the figures were the estimates from the Welsh Local Government Association (WLGA) and added that the auditor general for Wales had said some councils in Wales were at the very edge of financial stability.

He said: “Education and social services account for the majority of local government spending.

The WLGA estimates schools and social services alone make up around 60 per cent of financial pressures this year.

“Local authorities have a statutory duty to provide these services and, with ever-increasing demand in these areas, there's little flexibility in other budgets.”

Mr Hedges questioned if Siân Gwenllian, the MS Cabinet Minister for Local Government, Housing and Planning, would argue for the supplementary budget to have additional money included for local government.

Describing the current financial situation as an “extremely challenging period”, Ms Gwenllian said her government understands the pressures of schools and local authorities.

Peter Fox, Conservative spokesperson for finance, local government, and communities, called on Ms Gwenllian to clarify if the government will be looking to restructure local authorities, noting a manifesto pledge to keep the structures of government in Wales, including town and community councils, under “continuous review”.

In response, Ms Gwenllian, a Ceredigion Penfro MS, confirmed restructuring local government is “not a priority for this government”.

However, she added: “There are a number of things that we could be working on collaboratively with local government to reduce bureaucracy and processes and focus on delivery.

“That's where the partnership agreement that the Welsh Government has with local government is extremely valuable, so that we can discuss jointly our priorities and look to the future.”