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

People, not maps

By Pam Parkes | 09 December 2025

Pam Parkes fears structures are being locked into reorganisation without factoring in workforce capability, leadership capacity and risks to wellbeing – and ...

FINANCE

Districts should look carefully at the creation of new town and city councils

By Ian Miller | 08 December 2025

Where public and political demand exist, districts have bandwidth now to focus on creating town or city councils, identifying land and buildings to transfer ...

FINANCE

Prevention, people and the future of public services in Wales

By Joanne Pitt | 05 December 2025

The idea of prevention being both necessary and achievable became a thread that ran through the CIPFA Wales conference, says Jo Pitt – and the event ‘made c...

FINANCE

Budget: The effects on combined and strategic authorities

By Tiffany Cloynes | 05 December 2025

Tiffany Cloynes looks at at the financial implications of the Budget for combined authorities and strategic authorities. She says that while the introduction...

Popular articles by Ellie Ames