Councils in Wales will receive a 4.3 per cent increase in their core revenue funding for 2020/21, amounting to nearly £4.5 billion from the Welsh Government.
The Welsh LGA said the provisional local government settlement was “positive” for councils next year as they will receive the first significant increase in their core grant funding for more than 12 years.
Extra capital funding has also been made available for investment in infrastructure.
But the WLGA said the financial outlook remains very challenging, with councils having to continue to make tough decisions to prioritise services, and on council tax increases, to help meet the funding shortfall.
Cllr Andrew Morgan, WLGA’s Leader, said: “I welcome this exceptionally good finance settlement. I am pleased that our positive engagement with the Welsh Government has paid dividends for our services, for our workforce, and for our residents.
“Throughout this year we have met with a number of ministers, who have listened carefully to what we had to say and have recognised the damaging effect that austerity has had on local services and frontline workers.
“Vital local services are essential to keep people well and out of hospital waiting rooms, and it is crucial that those services receive the funding they need.”
Julie James AM, Minister for Housing and Local Government, in a written Cabinet statement on the settlement, said it “provides local government with the most stable platform I can offer for planning budgets for the forthcoming financial year”.
She added: “I fully appreciate the pressures local government continues to face following a decade of austerity. This good settlement responds to the pressures local government had been anticipating and offers an opportunity to plan for the future.”