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Jayne Bryant MS Cabinet Secretary for Housing and Local Government (Landscape)

£6.1bn to deliver key services across Wales

£6.1 biliwn i ddarparu gwasanaethau allweddol ledled Cymru

The Cabinet Secretary for Housing and Local Government, Jayne Bryant, has announced that local authorities will receive £6.1bn from the Welsh Government to spend on delivering key services.  

This substantial investment comes from the Revenue Support Grant and non-domestic rates and means the core revenue funding for local government will increase by 4.3% next year.   

Vulnerable and low-income households will continue to be protected from any reduction in support through the Council Tax Reduction Scheme. 

The Cabinet Secretary said: “This settlement reflects our ongoing commitment to protecting core frontline public services as far as possible, supporting the hardest hit households and prioritising jobs. 

“We have been through a long period of austerity, with huge increases in demand for major services, a pandemic, and an extra-ordinary inflationary period. 

“We have been listening to local government to continue to understand the challenges they’re facing.  The additional funding from the Autumn Budget, means we have been able to increase our overall settlement for 2025-26 by more than £1bn. 

“We know that even with this increase our councils will still have to make difficult local choices. However, no local authority will see an increase of less than 2.8% next year and we will continue to work with local authorities on areas where we might be able to provide additional funding by the time of the final budget.” 

The draft Budget published by the Cabinet Secretary for Finance and Welsh Language outlined increases to the general capital funding for local authorities to £200m, recognising the impact of inflation in recent years. 

The Low Carbon Heat Grant has also been increased to £30m to support authorities with decarbonisation and to continue the focus on contributing to the Net Zero Wales plan. 

The Cabinet Secretary added: “It will take time for public finances to recover after 14 long years of austerity, but we will continue to work with our local authority colleagues to ensure the best use of resources and deliver for the people of Wales.” 

ENDS 

Notes to editors

A summary table of 2025-26 Provisional Settlement compared to 2024-25 adjusted final AEF is available here: 

 

2024-25 AEF (£000)1  

2025-26 AEF (£000) 

Change (£000) 

% change 

Rank 

Isle of Anglesey  

130,889 

135,605 

4,716 

3.6% 

16 

Gwynedd 

239,101 

246,818 

7,717 

3.2% 

20 

Conwy 

210,750 

218,586 

7,835 

3.7% 

14 

Denbighshire 

205,561 

215,222 

9,661 

4.7% 

Flintshire 

266,074 

274,779 

8,705 

3.3% 

19 

Wrexham  

239,036 

249,511 

10,475 

4.4% 

11 

Powys 

242,414 

250,184 

7,770 

3.2% 

21 

Ceredigion 

138,958 

143,938 

4,980 

3.6% 

17 

Pembrokeshire 

224,858 

232,966 

8,107 

3.6% 

15 

Carmarthenshire 

361,072 

375,747 

14,674 

4.1% 

12 

Swansea  

447,243 

468,469 

21,226 

4.7% 

Neath Port Talbot  

293,239 

306,217 

12,977 

4.4% 

10 

Bridgend  

266,124 

276,640 

10,516 

4.0% 

13 

The Vale of Glamorgan 

216,058 

223,420 

7,362 

3.4% 

18 

Rhondda Cynon Taf 

497,940 

521,279 

23,339 

4.7% 

Merthyr Tydfil 

126,720 

133,148 

6,427 

5.1% 

Caerphilly 

357,880 

373,980 

16,101 

4.5% 

Blaenau Gwent 

147,440 

154,532 

7,092 

4.8% 

Torfaen 

183,576 

192,215 

8,640 

4.7% 

Monmouthshire 

130,062 

133,704 

3,642 

2.8% 

22 

Newport 

311,772 

329,311 

17,538 

5.6% 

Cardiff 

640,615 

674,571 

33,955 

5.3% 

Total unitary authorities  

5,877,384 

6,130,839 

253,456 

4.3% 

  

Note: Total may not sum correctly due to rounding 

  1. 2024-25 AEF adjusted for the latest 2025-26 tax base and transfers at 2024-25 prices.

In addition to the core Local Government settlement there are specific grants to local authorities of over £1bn revenue and more than £1bn capital.