Title

FINANCE

Welsh councils face £750m shortfall

Local government finances in Wales are on an ‘unsustainable path,’ according to a report from Cardiff University’s Wales Governance Centre.

Local government finances in Wales are on an ‘unsustainable path,' according to a report from Cardiff University's Wales Governance Centre.

Analysis found councils face an estimated funding gap of £744m by 2027.

Researchers said use of reserves, council tax increases of more than 5% and further funding from the Welsh Government could ease challenges next year.

But the report said beyond that Welsh local government finances appeared to be on an ‘unsustainable path,' with the funding gap growing each year.

Researcher Guto Ifan said: ‘While local government services have been spared from the cuts announced for this year, the projections outlined in the briefing suggest a difficult medium-term outlook for Welsh local authority budgets.

‘Inflation and pay rises are set to fall over coming years, but spending pressures are still likely to outstrip projected increases in funding. This could have a serious impact on the provision of local services.'

FINANCE

Cherishing the value of public libraries

By Ivan Wadeson | 03 August 2026

Ivan Wadeson reflects on the importance of championing and cherishing libraries and what the new government leadership might mean for these crucial community...

FINANCE

How data and community voice are shaping Luton's climate future

By Leonie Taylor | 03 August 2026

Senior researcher Leonie Taylor shares her experiences of The Young Foundation’s work with Luton BC, mapping a fair path to net zero.

FINANCE

CIPFA report uncovers 'weak financial management' at Hillingdon

By Martin Ford | 31 July 2026

Hillingdon LBC must change course to avoid relying on exceptional financial support (EFS) for years to come, a report has concluded.

FINANCE

Mayors to share income tax by 2028

By Martin Ford | 30 July 2026

Every mayor will be offered a share of income tax and business rates retention, the Government has announced.

Popular articles by Ellie Ames