Welsh councils increased voluntary sector funding by 28%, or £35m, between 2004 and 2006. Figures from the Local Government Data Unit Wales also showed councils provided more than £160m of funding through grants and commissioning services from voluntary organisations and an additional £30m of rate relief to the voluntary sector in 2005-06. Leader of the Welsh Local Government Association Cllr Derek Vaughan said the research was further evidence of the ‘effective relationship' between local councils and the voluntary sector.