Labour-Plaid budget deal eases grim financial outlook

A GRIM financial outlook including the need for a 6.5% council tax hike has been eased by the budget deal between Welsh Labour and Plaid Cymru, a senior Carmarthenshire councillor has sai

- RICHARD YOULE

‘As well as proving a week is a long time in politics the national deal offers some respite for authorities in Wales as they crunch the numbers before finalising their 2026-27 budgets.

‘A report before Carmarthenshire’s cabinet on December 15, which was written before the agreement was announced the previous Tuesday, said the council would need to increase council tax by 6.5% in 2026-27 and make savings of £9.6m - and still need to find a further £3.5m to balance the books.

This was based on the council getting a relatively low funding increase of 2.3% - worth £17.1m — from the Welsh Government, combined with ongoing spending pressures.