Concerns as councils told of funding rise for 2026/27

THE amount of money councils in Wales will get from the Welsh Government in the next financial year has been announced.

- RUTH MOSALSKI

There is an average 2.7% funding increase and no council receives less than a 2.3% increase compared to last year. The council which gets the biggest rise in funding is Newport, which gets 4.3% more than last year.

Newport's overall population has risen, and school age population, which have both seen it get more this year. In total, councils will receive £6.4bn from the Welsh Government next year.

Councils get money from a range of places, but the biggest is the Welsh Government's revenue support grant, which is determined on a needs-based formula.

In 2024-25 that was 44% of council funding. There are then grants (24%) and non-domestic rates (11%). A fifth of funding in that year (20%) was from council tax, and 1% of funding was from reserves.

In Wales, councils fund education (38%) of their budget in 2024-25, social services (29%), council housing (10%), as well as environmental services, planning, libraries and culture, debt financing and roads.

Welsh local government minister Jayne Bryant, said it will mean £6.4bn is given to Wales’ 22 councils from the Welsh Government to spend on delivering key services.