Welsh councils fear cuts and bankruptcy despite cash boost

According to Welsh government documents, councils will have a 4.3% rise to their funding overall, which is worth £6.1bn in total.

But the amount they get varies according to a funding formula, which takes into account the needs of the population and the ability of councils to raise funding via tax.

Under the government’s funding formula the two cities in the south east do best, with Newport seeing a 5.6% rise, and Cardiff a 5.3% rise.

Monmouthshire will have the smallest increase at 2.8% – just above the current rate of inflation at 2.3% – while the 21st and 20th worst is Powys and Gwynedd at 3.2% each.

Monmouthshire council leader Mary Ann Brocklesby said she is “pressing for a larger increase”.

“I believe all local authorities in Wales should receive at least a 3.5% increase,” she said.

In a letter to council leaders, Jayne Bryant said: “While this is a significantly better settlement than was envisaged at the beginning of this year, I recognise that there will again be difficult local decisions to be made.”

“Following the UK government autumn statement, our overall settlement for 2025-26 is more than £1bn higher than it would have been under the previous UK government.

“However, as we all recognise, 14 years of constrained funding cannot be turned around in just one budget and it will take time for the public finances to recover”.