Local authorities in Wales will experience 3.4% budget cuts in 2014/15, Welsh local government ministers have announced.

Minister for local government and government business, Lesley Griffiths has confirmed general local government revenue is set to decrease to £4.26bn next year.

In a statement outlining local government revenue and capital settlements for 2014/15, Ms Griffiths said the overall change had improved since the time of the provisional settlement. following a decision to dehypothecate £4m of funding previously set aside for a council ltax reduction scheme grant for pensioners.

‘Whilst today's settlement represents a reduction in funding, it still reflects a balanced outcome for local government in Wales, given cuts imposed by the UK Government which will total a £1.7bn reduction in the Welsh Budget by 2015/16,' Ms Griffiths said.

‘This final settlement demonstrates my commitment to increase flexibility, achieve fairness and provide additional support,' she added.

Included within the settlement is £244m to fund the council tax reduction scheme and £5.2m administration subsidy previously given by the Department for Work and Pensions.

Welsh councils can expect more than £700m in specific grants and a damping mechanism which will ensure no Welsh local authority would face a cut of more than 4.6% when adjusted for transfers.

Powys and Ceredigion and Denbighshire are among the worst affected Welsh authorities, taking a full 4.6% financial hit. 
 
On the opposite end of the spectrum, Newport Council is best protected with a 1% budget cutback and Cardiff is ranked fourth place, losing 2.7% of last year's grant settlement – from £448m in 2013/14 to £435m in 2014/15

The capital settlement including specific capital grants is set to total £406.3m – which Ms Griffiths claimed was a better settlement than previously forecast.