# Welsh local authority funding review and disputes > Live situation record from CLSTR: https://clstr.news/situations/welsh-local-authority-funding-review-and-disputes > Updated: 2026-09-21T13:45:24.000Z. Sources: 5. Developments: 2. The Welsh Government initiated a major review of the funding formula used to allocate resources to local authorities. Led by the Wales Centre for Public Policy, the review seeks to ensure that resource distribution reflects the actual costs of essential services, such as education and personal social services, while accounting for factors like rurality and demographic shifts. Following this initiative, the government has faced criticism regarding the management of funding for children with Additional Learning Needs (ALN). Local officials, specifically at Denbighshire County Council, have accused the government of failing to pass on consequential funding from the UK Government. While the UK Government provided approximately £340 million for special educational needs in England, the Welsh Government did not distribute these funds directly to Welsh councils, citing links to the write-off of historic debts in England. Despite these criticisms, data shows that local authorities have increased their budgets for ALN provision, with the 2026-27 budget reaching £764 million, a 14.4% increase from the previous year. ## Timeline ### 2026-09-21: Welsh Government accused of under-funding Additional Learning Needs The Welsh Government faces accusations of under-funding Additional Learning Needs (ALN) after deciding not to pass certain UK Government consequential funding directly to local councils. 2 sources. https://clstr.news/cluster/welsh-government-accused-of-under-funding-additional-learning-needs ### 2026-08-24: Welsh Government commissions review of local authority funding The Welsh Government has launched a review of local authority funding to ensure allocations better reflect the real costs of services, including education and social services, across different regions. 3 sources. https://clstr.news/cluster/welsh-government-commissions-review-of-local-authority-funding --- Cite as: Welsh local authority funding review and disputes. CLSTR, https://clstr.news/situations/welsh-local-authority-funding-review-and-disputes