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

MHCLG praises council capability on housing

By Joe Lepper | 22 May 2026

A senior Ministry of Housing, Communities and Local Government (MHCLG) official has praised the improved capability of councils to deliver major housing proj...

FINANCE

EXCLUSIVE: MHCLG to relocate

By Dan Peters | 21 May 2026

The Ministry of Housing, Communities and Local Government (MHCLG) is expected to relocate from Marsham Street to offices at Great George Street within the ne...

FINANCE

Reed warns of sanctions over service standards

By Martin Ford | 21 May 2026

Local government secretary Steve Reed has warned of sanctions for councils that fail to meet new service standards.

FINANCE

'Concerned' Reed launches anti-profiteering push

By Dan Peters | 21 May 2026

‘Concerned’ local government secretary Steve Reed has vowed to ‘take action’ to tackle ‘profiteering’ in parts of the sector.

Popular articles by Ellie Ames