When allocating its overall budget Welsh Government assigns a portion to fund council services. This money is then shared out between all 22 Welsh councils. The amount each council receives is worked out through the Local Government Funding Formula. This looks at things like the geographical size of the council, how rural it is, the size of its population, the economy of the area in terms of wealth and poverty.
Âé¶¹´«Ã½ÍøÕ¾ has the sixth largest population in Wales, however, under the Funding Formula, Âé¶¹´«Ã½ÍøÕ¾ is a low funded Council, positioned 19 out of 22 Councils for the amount of money it receives per head of population (see table below). This is £170 lower per person than the Welsh average. If Âé¶¹´«Ã½ÍøÕ¾ received the Welsh average, it would be around £26.5m better off financially.
Since 2008, due to reductions in funding by United Kingdom and national governments, Âé¶¹´«Ã½ÍøÕ¾ has reduced its spending by £142m so there are very few opportunities left to further cut back on spending.
Like individual households, the Council is feeling the effects of rising prices and after 16 years of reduced funding and having to cut back on spending, there are very few opportunities left to do things differently to save money.
In December 2025 the gap in our budget was forecast to be £28.945m.
Taking account of:
- Welsh Governments provisional settlement announcement (a 2.3% increase for Âé¶¹´«Ã½ÍøÕ¾),
- and an indicative 5% council tax increase
this gap was reduced to £9.519m.
Welsh Government later announced in January an increase in its settlement (from 2.3% to 4.1% for Âé¶¹´«Ã½ÍøÕ¾).
Whilst this extra funding was welcomed it still wasn’t enough to close the gap and we have been left with no option other than to make hard choices about where to cut our spending.
To achieve a legally balanced budget the Council:
- asked all services to identify further budget reductions.
- increased fees and charges for some services.
- settled on a final Council Tax increase of 4.98% to pay for council services, with a further 0.48% to help pay for increases in our contributions to the North Wales Fire and Rescue Authority.
| Council | 2026-27 final funding from Welsh Government | Welsh Government funding per head of population (£) | Position in Wales per head of population |
| Blaenau Gwent |
165,530 |
2,439 |
1 |
| Merthyr Tydfil |
142,226 |
2,412 |
2 |
| Denbighshire |
229,908 |
2,341 |
3 |
| Rhondda Cynon Taf |
556,416 |
2,291 |
4 |
| Neath Port Talbot |
326,025
|
2,276 |
5 |
| Caerphilly |
398,562 |
2,253 |
6 |
| Torfaen |
205,875 |
2,187 |
7 |
| Gwynedd |
264,009 |
2,185 |
8 |
| Newport |
356,168 |
2,121 |
9 |
| Ceredigion |
153,336 |
2,112 |
10 |
| Carmarthenshire |
400,106 |
2,097 |
11 |
| Isle of Anglesey |
144,585 |
2,092 |
12 |
| Conwy |
233,503 |
2,032 |
13 |
| Bridgend |
296,168 |
2,008 |
14 |
| Swansea |
502,797 |
2,001 |
15 |
| Powys |
267,568 |
1,981 |
16 |
| Pembrokeshire |
248,890 |
1,979 |
17 |
| Wrexham |
268,026 |
1,939 |
18 |
| Âé¶¹´«Ã½ÍøÕ¾ |
294,090 |
1,887 |
19 |
| Cardiff |
716,999 |
1,868 |
20 |
| The Vale of Glamorgan |
240,134 |
1,769 |
21 |
| Monmouthshire |
144,723 |
1,525 |
22 |
| Total Councils |
6,555,645 |
2,057 |
|
*Aggregate External Finance
| Unitary Authority | Council Tax Increase Percentage (highest to lowest) | Rank |
| Conwy |
6.50% |
1 |
| Caerphilly |
6.35% |
2 |
| Monmouthshire |
5.95% |
3 |
| Vale of Glamorgan |
5.50% |
4 |
| Âé¶¹´«Ã½ÍøÕ¾ |
5.46% |
5 |
| Denbighshire |
5.22% |
6 |
| Gwynedd |
5.17% |
7 |
| Anglesey |
5.10% |
8 |
| Merthyr Tydfil |
5.00% |
9 |
| Bridgend |
4.95% |
10 |
| Carmarthenshire |
4.90% |
11
|
| Powys |
4.90% |
| Wrexham |
4.90% |
| Newport |
4.90% |
| Ceredigion |
4.75% |
12 |
| Pembrokeshire |
4.60% |
13 |
| Rhondda Cynon Taf |
4.00% |
14 |
| Torfaen |
3.95% |
15 |
| Swansea |
3.90% |
16 |
| Blaenau Gwent |
3.75% |
17 |
| Neath Port Talbot |
3.50% |
18
|
| Cardiff |
3.50% |
More detailed information on the financial challenges facing the Council and setting the budget for 2026/27 can be found in The budget, your Council Tax and local services Frequently Asked Questions.