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Wales' new local government minister says work has already started on reviewing the country's local government funding formula.With Plaid Cymru having formed the new government as the largest party in the Senedd following May's elections, Siân Gwenllian says: ‘It was [one of our] manifesto commitments to review the local government funding formula.‘The work has started already on looking at particular aspects of it.'The process will have a deliberate focus on the underlying principles that guide distribution, not just the technical modelling, she adds.‘I'm keen to look at the principles as well as the data aspects of it.'It hints at a willingness to reopen long running questions about how effectively the formula reflects rural sparsity, entrenched deprivation and differing local needs.But Gwenllian is pragmatic about the political and operational realities.‘I think it is time for that review to be happening and, of course, there will be losers as well as winners, so we have to be really very, very careful in how we are moving on this.'Gwenllian is equally clear that this will not be a top down exercise handed to local government as a fait accompli. She stresses that the process must be shaped with councils, not just about them.‘I am really keen to be doing this with people in local government,' she says. ‘There's going to be plenty of opportunity for people to feed into this whole discussion.'The new minister points to the last budget deal by way of evidence of her party's commitment to providing councils with adequate funding.‘Plaid Cymru did secure an uplift, I think it was £120m for local government in Wales…and we were very, very pleased to have done that, because we obviously recognise the important role of local government in delivering so many services to vulnerable people.'Gwenllian describes councils as ‘the democratic block which is nearest to people'. It's a sector she's familiar with, having served as a community councillor, a county councillor and deputy leader of Gwynedd Council. She also worked as a press officer for the same authority.‘I really understand the importance of not just local government, not just of the local authorities, but of the community councils as well.'‘I'm a big advocate of that level of democracy being close to communities.'She bats away questions about Plaid Cmyru's plans for council tax. The previous government committed to carrying out revaluations every five years from 2028.The country has already got one extra band compared to England and further additions were mooted when Labour controlled the Senedd.This is a question for the finance minister she insists, but admits: ‘Obviously we are having discussions about reform of council tax.'Gwenllian makes clear the importance of housing to her new brief.‘Housing is my major priority as well, obviously,' she says. ‘Understanding the tangible benefits that having a secure, comfortable, adequate house can have on people's lives.‘We need to be ramping up now that supply, because that is the answer for me. It's to address the housing crisis and tackle homelessness.'The new Welsh Government has set a target of 20,000 homes during this Senedd term. It plans to establish Unnos – a national development agency – to accelerate the delivery of social housing.Crucially for local leaders, she stresses that councils remain central actors.‘Local authorities have got a crucial role to play in Wales. Some of the councils still own the social homes anyway.'In addition, the minister recognises the Welsh Government needs to work in partnership with registered social landlords (RSLs).She notes that in her previous role as Plaid Cymru's housing spokesperson many of the policies now in government were developed ‘hand in glove' with the RSLs, councils and the wider housing sector.It is a collaborative ethos she intends to continue.

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FINANCE

Reshaping funding in Wales

By Paul Marinko | 18 June 2026

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