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

Trafford bid for £20m EFS

By Joe Lepper | 16 January 2026

Trafford Council is to ask Whitehall for more than £20m in exceptional financial support (EFS) after its deficit increased by £24m under the fair funding rev...

FINANCE

Hundreds of children failed by 'dysfunctional' care system

By William Eichler | 16 January 2026

Hundreds of vulnerable children in England are being placed for months in illegal, unregistered homes, according to a report from the Public Accounts Committee.

FINANCE

Forward motion for SEND?

By Rob Powell | 15 January 2026

Local government funding is a huge talking point as the new year kicks into gear, with cumulative SEND deficits being one of the areas strongly in need of he...

FINANCE

Councils defy party lines on election delays

By Martin Ford | 15 January 2026

Council leaders have strayed from party lines over proposals to delay local elections.

Popular articles by Ellie Ames