Written Statement: Update on actions to support the role, governance and accountability of the community and town council sector

In March this year, the Local Government and Housing Committee concluded its inquiry into the role, governance and accountability of the community and town council sector. I accepted all 11 recommendations.

I would like to thank everyone who contributed to this important work, and I am pleased to set out the Welsh Government’s approach to acting on their key recommendations.

We are committed to a phased and impactful approach to this work. This is designed both to provide clarity to the sector and ensure meaningful engagement while respecting the capacity of councils and their partners. 

This autumn, we will begin engaging with the sector on the first theme relating to standards of behaviour. Addressing this is important to enable both good governance and stewardship of councils. Work has already commenced to explore options to facilitate greater use of local resolutions to disputes within the sector. I am grateful for the participation of stakeholders at the workshop held on 11 September, which launched this phase of work and gathered valuable early feedback. Alongside this, work will begin on examining the recommendation of exploring the introduction of mandatory code of conduct training for community and town councillors, with consideration of the various options for its implementation. This will put us in a strong position to identify the changes required and act on them.  

Engagement will continue through the autumn and into the new year, ensuring that voices from across the sector help shape any proposed changes. Our approach will draw together these important recommendations and engage the sector in discussions about diversity in democracy. In particular, I look forward to the outcomes from the workstream looking at abuse in politics, which will culminate in an event in spring 2026.

In respect of the second theme, I expect work on exploring a new bespoke audit system for community and town councils to begin afterwards, most likely in the spring/summer of 2026. Changes to the audit system are likely to require deep consideration leading to legislative changes. Given the importance of good governance and use of public money, alongside the likely significant impact on the practices of community councils, I am of the view that this must be done right rather than quickly. 

This sequencing will help to build capacity within the sector, ensuring that each set of recommendations receives the attention it deserves. We want to support councils and their communities in developing solutions that are robust, practical and sustainable. 

I want to thank all partners and stakeholders for their ongoing engagement and commitment to improvement within the community and town council sector. I look forward to continuing to work together as we deliver on these recommendations for the benefit of councils and the communities they serve.