Topics

Budget and council tax

How the council raises and spends its money, including council tax and savings.

This month

What's happening

Ceredigion Council approved its Medium Term Financial Strategy for 2027/28 to 2031/32, a five-year financial plan, on 22 October. Powys Cabinet agreed revised assumptions for its own multi-year plan and asked senior officers to find savings to address the indicative budget gap.[4][6]
Pembrokeshire Cabinet recommended keeping the second homes council tax premium at 125% and the long-term empty property premium at 300% from 1 April 2027. Full Council was due to decide on 15 October 2026.[14][15][10][11]
Carmarthenshire scrutiny committees received the 2025/26 revenue outturn and 2026/27 monitoring reports. One committee noted an underspend of £1.442 million in its services and new grants including £1.533 million for coastal protection and flood defence.[5][7][2][3]
Blaenau Gwent Cabinet accepted the revenue forecast to 31 March 2027. The minute lists budget virements and the forecast use of reserves to support the in-year position and fund the forecast overspend.[8][9]

Pressing issues

Forecast overspends feature in several councils. Denbighshire's finance report forecast an overspend of £704k for 2026/27, and Carmarthenshire's Council considered budget pressures and a forecast overspend.[16][12]
Rhondda Cynon Taf says the cost of running services has gone up faster than its funding, leaving a budget gap. Its Budget 2027/28 (Phase 1) survey closes on 14 December 2026.[17]
School budgets came up in Blaenau Gwent, where scrutiny considered an Estyn report on council support for schools to manage their budgets, and in Monmouthshire. There the Chair asked for a school balances graph showing a £7.1m deficit to be updated, as the forecast discussed was £9.337m.[1][13]
The WLGA said in September that councils projected £184.3m of in-year pressures. Audit Wales reports that councils' budgeted spending on additional learning needs rose by 34% in real terms between 2018-19 and 2025-26.[21][20]

The policy context

The Welsh Government has paused the council tax revaluation. The Finance Minister said legislation to defer it to the next Senedd term will be brought forward.[18]
The final 2026-27 Local Government Settlement increased overall core funding for local authorities by 4.5%. The budget agreement added an extra £112.8m for local authorities.[21]
Audit Wales found the Welsh Government has not fully reviewed how it allocates funding to councils to make sure it is effective.[19]

Written in November 2026 from council records since 20 September 2026, open consultations and official sources. Written automatically, then checked: every point names its sources and every figure appears in them. Follow the links to check anything before relying on it.

Sources

1. Blaenau Gwent meeting, 3 November 2026 Estyn Report - Local Authority Support for Schools to Manage their Budgets
2. Carmarthenshire meeting, 23 October 2026 Revenue budget outturn 2025/26
3. Carmarthenshire meeting, 23 October 2026 Revenue and capital budget monitoring 2026/27
4. Ceredigion meeting, 22 October 2026 Medium Term Financial Strategy, 2027/28 to 2031/32
5. Carmarthenshire meeting, 20 October 2026 Revenue budget outturn 2025/26
6. Powys meeting, 20 October 2026 Financial planning update and budget gap for 2027/28
7. Carmarthenshire meeting, 20 October 2026 Revenue and capital budget monitoring 2026/27
8. Blaenau Gwent meeting, 19 October 2026 Revenue budget forecast to 31 March 2027
9. Blaenau Gwent meeting, 19 October 2026 Revenue Budget Monitoring 2025/2026 – Provisional Outturn
10. Pembrokeshire meeting, 15 October 2026 Council Tax premium on second homes for 2027-28
11. Pembrokeshire meeting, 15 October 2026 Council Tax premium on long-term empty properties for 2027-28
12. Carmarthenshire meeting, 14 October 2026 Budget pressures and forecast overspend
13. Monmouthshire meeting, 13 October 2026 Medium Term Financial Plan update for 2027/28
14. Pembrokeshire meeting, 5 October 2026 Second homes council tax premium for 2027-28
15. Pembrokeshire meeting, 5 October 2026 Long-term empty homes council tax premium for 2027-28
16. Denbighshire meeting, 29 September 2026 2026/27 finance report: forecast overspend of £704k
17. Consultation: Budget 2027/28 (Phase 1)
18. Council tax revaluation paused in difficult budget context
19. Funding councils: how the Welsh Government funds councils
20. Additional Learning Needs: a system under strain
21. Budget 2026-27: Core funding for local authorities to increase by 4.5%

What councils do

Each council sets a budget every year: how much to spend on each service and how much council tax to charge. Council tax pays for about a third; most of the rest is a grant from the Welsh Government and business rates.

Who decides

The Cabinet proposes the budget, usually in the winter, and the full Council agrees it and sets council tax by early March. Scrutiny committees examine the plans first.

Having a say

Most councils run a budget consultation in the autumn or early winter. Your councillors vote on the final budget, so tell them what matters to you.

In numbers

Council tax collected: 95% across Wales (2025-26).
Council tax unpaid at the end of the year: £119 million across Wales (2025-26).
Council tax still owed from earlier years: £199.3 million across Wales (2025-26).
Council tax written off: £9 million across Wales (2025-26).

How each council is doing

By council, last 12 months

How many agenda items on this topic each council dealt with, and how many had a decision recorded.

Council	Items	With a decision
Carmarthenshire	85	80
Pembrokeshire	72	67
Swansea	71	52
Flintshire	70	50
Vale of Glamorgan	67	40
Powys	59	41
Cardiff	56	48
Gwynedd	55	41
Neath Port Talbot	54	50
Bridgend	45	0
Conwy	43	42
Ceredigion	40	38
Denbighshire	39	34
Merthyr Tydfil	38	30
Rhondda Cynon Taf	36	35
Blaenau Gwent	34	32
Newport	34	31
Caerphilly	33	0
Wrexham	28	27
Monmouthshire	24	9
Torfaen	19	13