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

Questions over link between welfare and rent increases

By Martin Ford | 17 August 2026

Unfreezing housing benefits would not drive increasing rents, according to newly-published analysis.

FINANCE

Nobody ever voted for a map

By Ben Page | 17 August 2026

Rewiring the State offers the most significant shift in local government for a generation, but there is still a lot that has been left unwritten, says Ben Page.

FINANCE

Do devolution differently: without LGR

By Colin Copus | 14 August 2026

Steve Leach and Colin Copus write an open letter to the Prime Minister urging the government to rethink local government reorganisation and strengthen devolu...

FINANCE

Could changing the way we think about care help deliver economic growth?

By Jim McKenna | 14 August 2026

Research commissioned by Cornwall Council shows social care drives economic growth, jobs, wellbeing and wider social value, says Cllr Jim McKenna.

Popular articles by Ellie Ames