VALE council funding is set to fall by £634,000 next year following the Welsh Government’s local government settlement announcement last week.

Cabinet secretary for local government Alun Davies AM revealed the settlement for the 2018/2019 financial year which includes an extra £20 million next year and £40 million the year after.

The Vale’s funding will fall by 0.4 per cent without taking into account inflation and rising demand which the authority says will have a “very significant impact” in real terms.

The then cabinet secretary for finance and local government Mark Drakeford AM made the announcement in his provisional local government settlement in October and the plans have been confirmed by his successor Mr Davies AM.

Mr Drakeford said in October that this is a “realistic settlement” that continues to protect local government against significant cuts.

Cllr John Thomas, leader of the Vale of Glamorgan Council, said that, despite offering a small amount of additional funding, the final settlement figure from Welsh Government has the same “harsh reality” as the provisional settlement announced in October, that local government budgets are being disadvantaged yet again.

“I had previously written to the cabinet secretary seeking assurances that budgets will be protected and I will continue to campaign for more realistic funding levels for all local authorities,” he said.

“The cut to the council’s budget for 2018/19, however, when one takes into account inflation and ever increasing demand for our services, means that many vital areas of work will be increasingly difficult to deliver.

“Clearly the reduction in funding will make it increasingly challenging for the Vale of Glamorgan Council to maintain the high standards that we pride ourselves on. The council will continue to strive to support those who depend on our services and as leader of the council I will do everything I can to protect those services that are most relied upon.”

But Alun Davies AM said: “We have listened to the concerns raised by many of our councils, and we have acted to address some of the pressures that exist in important areas such as youth homelessness.”

AMs are set to vote on the final budget on Tuesday, January 16.