While local authorities have been able to meet the financial challenges so far, a number lack robust arrangements for efficiency savings on which they will become increasingly reliant - the Auditor General for Wales, Huw Vaughan Thomas, has said.

Many Welsh town halls are not clear how they will manage with fewer resources and are not developing sustainable plans to finance their priorities, according to the Meeting the Financial Challenges report.

Strategic plans are not routinely based on ‘sound and appropriate financial information’ or being effectively monitored in certain local authorities...